The survey found that most consumers support allowing FDI in retail in India. 84% said the government should open FDI restrictions and 72% supported requiring foreign retailers to reserve 50% of jobs for rural areas. Consumers believe FDI will benefit farmers (68%) and consumers (88%) by increasing competition and quality. However, 78% said it may negatively impact unorganized retailers. While opinions varied on other industries, many (41%) were unsure of impacts. Overall, consumers see benefits from FDI but also want policies to support local industries and jobs.
Advantage India: A Study of Competitive Position of Organized Retail IndustryIOSR Journals
Organised retail industry is one of the untapped industry sectors in India with huge growth potential. Indian retail sector mainly divided into unorganised and organised retail. Organizes retail has limited market share in this sector. Recently Government of India allowed FDI in single brand retailing and multi brand retail. Due to this decision it will create market opportunity to foreign big retail players to enter into Indian retail market. Organised retailing continues to be the least evolved industries in India and the growth of organized retailing in India much slower as compared to other Asian and European countries. The present paper discusses the competitive advantage of India for FDI in retail sector with the help of National diamond Model suggested by Michael Porter (1990) for competitive advantage of nation. The purpose of the study is to analyse the strategic competitive position of India for investment in retail sector and also analyses the world wide retail market opportunity as compared with Indian retail sector. Analysis of retail industry is done by using various market research reports on retail sector published by market research firm, government publication, and industry news and online resource. Michael Porter’s model on competitive advantage of nation is applied here with the help of secondary data and analysed the each determinants of competitiveness of nation. Some of determinant used for analysis from the report published by World Economic Forum. The findings of the study are point out that FDI in retail would undoubtedly enable Indian economy to boost at faster rate than current situation. There are various advantages to foreign retailer to enter into the Indian retail sector. Growth in disposal income and a change in the standard of living of Indian society create demand condition for retail. Absence of bigger organised retail players, largest demand and market size, availability of low cost labour, developing infrastructure, economy of scale and global sourcing are the key market potential indicators for foreign investor to invest in India. It is concluded that foreign direct investment in retail industry will create positive and favourable business opportunity for foreign retailers and all the determinant of competitiveness are positive for retail industry in India.
With the emergence of supermarkets, kirana stores have been depleting day by day. Government is in the grave situation to decide whether to allow 50% FDI or not in the retail sector. There are certain retail outlets such as Walmart, Metro which are better in quality, cheaper in rates, and offering a range and variety of products under one roof. These malls have entered in India but they are into cash and carry business only and not in the multi brand retail sector. Many of them have entered through joint ventures. If government allow them to enter in India, it can be said that all the small shops and kirana stores will not be able to stand in the market. They cannot compete with them. Now the question arise how the kirana stores can be saved from these big giants in the market. It is the need of the hour today to save these kirana stores because in a developing country like India where the income of an average man is low, such types of small business can make them able to earn their living. The present research is an attempt to find out the weaknesses of kirana stores as compared to the malls and to find out the solutions for the betterment of the stores. The research is conducted on various kirana stores in Punjab. The study identifies the problems being faced by kirana merchants such as recovery of credit, inventory management, goodwill in terms of quality, low space, and lack of variety etc. But during the research it has been found out that there are certain areas where these kirana stores have an edge over the market such as emotional attachment with the customer, to fulfil the timely need of credit of the customer, easy availability etc. It is concluded that both kirana stores and malls are important to the Indian economy. FDI is important for the growth of the economy but it should come for the rescue of the existing business and not as a threat. Secondly government intervention is seeked to make improvements in the functioning of the kirana stores. If kirana stores starts using their strategic advantages to the optimum level, they can make can make their existence strong in the market.
Advantage India: A Study of Competitive Position of Organized Retail IndustryIOSR Journals
Organised retail industry is one of the untapped industry sectors in India with huge growth potential. Indian retail sector mainly divided into unorganised and organised retail. Organizes retail has limited market share in this sector. Recently Government of India allowed FDI in single brand retailing and multi brand retail. Due to this decision it will create market opportunity to foreign big retail players to enter into Indian retail market. Organised retailing continues to be the least evolved industries in India and the growth of organized retailing in India much slower as compared to other Asian and European countries. The present paper discusses the competitive advantage of India for FDI in retail sector with the help of National diamond Model suggested by Michael Porter (1990) for competitive advantage of nation. The purpose of the study is to analyse the strategic competitive position of India for investment in retail sector and also analyses the world wide retail market opportunity as compared with Indian retail sector. Analysis of retail industry is done by using various market research reports on retail sector published by market research firm, government publication, and industry news and online resource. Michael Porter’s model on competitive advantage of nation is applied here with the help of secondary data and analysed the each determinants of competitiveness of nation. Some of determinant used for analysis from the report published by World Economic Forum. The findings of the study are point out that FDI in retail would undoubtedly enable Indian economy to boost at faster rate than current situation. There are various advantages to foreign retailer to enter into the Indian retail sector. Growth in disposal income and a change in the standard of living of Indian society create demand condition for retail. Absence of bigger organised retail players, largest demand and market size, availability of low cost labour, developing infrastructure, economy of scale and global sourcing are the key market potential indicators for foreign investor to invest in India. It is concluded that foreign direct investment in retail industry will create positive and favourable business opportunity for foreign retailers and all the determinant of competitiveness are positive for retail industry in India.
With the emergence of supermarkets, kirana stores have been depleting day by day. Government is in the grave situation to decide whether to allow 50% FDI or not in the retail sector. There are certain retail outlets such as Walmart, Metro which are better in quality, cheaper in rates, and offering a range and variety of products under one roof. These malls have entered in India but they are into cash and carry business only and not in the multi brand retail sector. Many of them have entered through joint ventures. If government allow them to enter in India, it can be said that all the small shops and kirana stores will not be able to stand in the market. They cannot compete with them. Now the question arise how the kirana stores can be saved from these big giants in the market. It is the need of the hour today to save these kirana stores because in a developing country like India where the income of an average man is low, such types of small business can make them able to earn their living. The present research is an attempt to find out the weaknesses of kirana stores as compared to the malls and to find out the solutions for the betterment of the stores. The research is conducted on various kirana stores in Punjab. The study identifies the problems being faced by kirana merchants such as recovery of credit, inventory management, goodwill in terms of quality, low space, and lack of variety etc. But during the research it has been found out that there are certain areas where these kirana stores have an edge over the market such as emotional attachment with the customer, to fulfil the timely need of credit of the customer, easy availability etc. It is concluded that both kirana stores and malls are important to the Indian economy. FDI is important for the growth of the economy but it should come for the rescue of the existing business and not as a threat. Secondly government intervention is seeked to make improvements in the functioning of the kirana stores. If kirana stores starts using their strategic advantages to the optimum level, they can make can make their existence strong in the market.
retail analysis with pestel, condition of indian retail in terms of figures and a brief forecast and Pestle, future of retail in India, relation between India & retail, can retail survive in India, projection of retail in India, future analysis of retail in India, Is retail good in India, Pestle Analysis of retail future in India, Pestle and retail analysis in India, Retail in India and hindrance in it through Pestle analysis
Introduction to Different Services- Retail sectorMukeshPradhan19
Introduction, SWOC Analysis of Retail Sector, Types/Segments, Latest Developments in India, Major Players, 7Ps of following sectors, other contemporary issues.
retail analysis with pestel, condition of indian retail in terms of figures and a brief forecast and Pestle, future of retail in India, relation between India & retail, can retail survive in India, projection of retail in India, future analysis of retail in India, Is retail good in India, Pestle Analysis of retail future in India, Pestle and retail analysis in India, Retail in India and hindrance in it through Pestle analysis
Introduction to Different Services- Retail sectorMukeshPradhan19
Introduction, SWOC Analysis of Retail Sector, Types/Segments, Latest Developments in India, Major Players, 7Ps of following sectors, other contemporary issues.
Foreign Direct Investment, Financial Development and Economic GrowthMario Alvaracin
The present document analyzes the importance of the financial development on economic growth, in transferring the technological diffusion embroiled in foreign direct investment (FDI) inflow on the Ecuadorian economy from 1977 to 2010.
Foreign direct investment (FDI) is a direct investment into production or business in a country by a company in another country, either by buying a company in the target country or by expanding operations of an existing business in that country.
Retailing in India accounts for 14 to 15 percent of its GDP. The Indian retail market is estimated to be US$ 450 billion and one of the top five retail markets in the world by economic value. India is one of the fastest growing retail markets in the world, with 1.2 billion people.
Abstract: Retailing is one of the India’s largest private industries. Liberalization in FDI has caused a massive restructuring in retail industry. The benefit of FDI in retail industry superimposes its cost factors. Opening the retail industry to FDI will bring forth benefits in its terms of advance employment, organized retail stores, availability of quality products at a better and cheaper price. It is to be noted that there is a prevalent widespread opposition, especially by the left parties towards FDI retail in India. May be in 1990s employing safeguard to protect the domestic retailers was the need of the day. Almost more than one and a half decades down the line there is a need for Foreign Direct Investment in retail trade.
Retail industry in India is undoubtingly one of the fastest growing retail industry in the world. It is the largest among all industries accounting to 10 per cent of the country GDP and employs around 8 per cent of the workforce.
Report on Impact of FDI in Retail in IndiaAkshay Seth
This report talks about the impact of FDI in Retail in India along with critically analyzing the versatility of the regulations which have been recently introduced for Multi Brand Retail
Retail Industry of India contributes to 12 percent of GDP of India. The Indian Retail Industry is
divided into organized and unorganized retail. The Indian retail sector is highly fragmented with 95
percentage of its business being dominated by unorganized retailers like traditional family run
stores. The unorganized retail sector has continued to grow at about 10 percent per annum with
sales rising from $ 309 billion in the year 2006-07 to $ 496 billion in the year 2011-12. The
unorganized retail sector employs about 33 million people in India.
The secret way to sell pi coins effortlessly.DOT TECH
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Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
1. Elemental Economics - Introduction to mining.pdfNeal Brewster
After this first you should: Understand the nature of mining; have an awareness of the industry’s boundaries, corporate structure and size; appreciation the complex motivations and objectives of the industries’ various participants; know how mineral reserves are defined and estimated, and how they evolve over time.
5 Tips for Creating Standard Financial ReportsEasyReports
Well-crafted financial reports serve as vital tools for decision-making and transparency within an organization. By following the undermentioned tips, you can create standardized financial reports that effectively communicate your company's financial health and performance to stakeholders.
How to get verified on Coinbase Account?_.docxBuy bitget
t's important to note that buying verified Coinbase accounts is not recommended and may violate Coinbase's terms of service. Instead of searching to "buy verified Coinbase accounts," follow the proper steps to verify your own account to ensure compliance and security.
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Lecture slide titled Fraud Risk Mitigation, Webinar Lecture Delivered at the Society for West African Internal Audit Practitioners (SWAIAP) on Wednesday, November 8, 2023.
2. India is without doubt a 'growth' economy and
many consider it an attractive country to invest
in, particularly in its rapidly growing and
changing retail market.
This division of the retail sector, which has a very
heavy weighting towards, unorganized, is just
one of the issues causal to the sensitive debate
on FDI in India at the moment.
The Indian retail industry is divided into organized
and unorganized sectors.
Organized retailing refers to trading activities
undertaken by licensed retailers, that is, those
who are registered for sales tax, income tax, etc.
Unorganized retailing, on the other hand, refers to the
traditional formats of low-cost retailing.
3. Retail Trade – India, US and China
Country
Trade (US$
billions)
Employment
(%)
Shops
(millions)
Organized
Sector Share
(%)
India 180-394 7 12 2-3
China 360 12 2.7 20
US 3800 12.6-16 15.3 80
The last few years witnessed immense growth by this segment, the
key points being changing consumer profile, economic implications of
the Government increasing urbanization, credit availability, improvement
in the infrastructure, increasing investments in technology and real estate
building a world class shopping environment for the consumers.
4. Retailer
Formats
available
Name of brand
Numbers of
Stores
Area Space
(‘000 sq ft)
Pantaloon
Retail Indian
Ltd
Department
store
Pantaloon 13 1,948
Hypermarket Big Bazaar 450 5000
Seamless Malls Central 12 1200
RPG Retail
Hyper markets Spencer’s 400 6000
Music Stores Music world 225 230
books Stores
Books and
Beyonds
Shopper’s Stop
Ltd.
Department
stores
Shopper’s Stop 20 1000
Books & Music
Stores
Crosswords 33 N/A
Home
furnishing
Home Stop N/A N/A
Landmark
Group (Based
in Dubai)
Department
Stores
Lifestyle 8 370
5. The government has created a specific Board to
deal with promotion of FDI in India and to be the sole
agency to handle matters related to FDI. The
'Foreign Investment Promotion Board' (FIPB) as it is
known, is chaired by the Secretary Industry
(Department of Industrial Policy &Promotion or DIPP)
within the office of the Prime Minister.
Its key objectives are to promote FDI in India with
investment promotion activities both domestically
and internationally by facilitate investment in the
country via international companies, NRIs (non-
resident Indians) and other forms of foreign investors.
The FIPB should review policy and puts appropriate
institutional schedule in place with transparent rules,
guidelines, and procedures for investment promotion
and approval.
6. 1995 – World Trade Organization‟s general agreement on
trade in services, which include both wholesale and retailing
services, came into effect
1997 – FDI in cash and carry (wholesale) with 100% rights
allowed under the government approval route
2006 – FDI in cash and carry (wholesale) brought under the
automatic route
Up-to 51% investment in a single- brand retail outlet permitted
2011 – 100% FDI in single –brand retail permitted
2012, Sep – 51% FDI in multi- brand retail permitted
The Indian government removed the 51% cap on FDI into
single-brand retail outlets in December 2011, and opened the
market fully to foreign investors by permitting 100% foreign
investment in this area. It also made drastic progress in
allowing multi-brand retailing, which had so far had been
prohibited in India.Impact of FDI on Retail Sector in India
7. Foreign investment in single brand retail stores
is now 100% and
100% FDI in wholesale cash and carry
51% FDI in multi-brand retailing is allowed now
Foreign investments are freely regulated
under the Foreign Exchange Management
Act (1999) (FEMA), administered by the
Reserve Bank of India's Exchange Control
Department. Ernst& Young in their report on
behalf of the India Brand Equity Foundation .
8. Current Entry Options for Foreign Players
Franchise
Agreements
Most widely used entry route by multinational
retailers.
Fast food retailer Domino’s entered India through
master franchise route while Pizza Hut entered
through regional franchisee.
Cash and Carry
Wholesale Trading
100% FDI is allowed in wholesale trading which
involves building of a large distribution
infrastructure to assist local manufacturers.
The wholesaler deals only with smaller retailers
and not consumers.
Metro AG of Germany was the first significant
global player to enter India through this route.
Strategic Licensing
Agreements
Foreign company enters into a licensing
agreement with a domestic retailer.
Mango, the Spanish apparel brand has entered
9. Spotlighting today's buoyant youth, Pantaloons, India's
premium lifestyle apparel company offers chic and
trendy fashion to meet their ever-changing needs.
Pantaloons reflects the ideology of always keeping alive
the 'newness factor' through fashion apparel and
accessories that are visually appealing and fashionably
upbeat.
Pantaloons, the newly acquired business by The Aditya
Birla Group, one of India’s leading multinational
conglomerates, are a powerhouse of fresh fashion and
innovation. While weaving its magic across lifestyle
10. Pantaloon is one of the biggest retailers in India with more than
450 stores across the country.
Headquartered in Mumbai, it has more than 5 million sq. ft retail
space located across the country.
It's growing at an enviable pace and is expected to reach 30
million sq. ft by the year 2010.
In 2001, Pantaloon launched country's first hypermarket ‘Big
Bazaar’.
Pantaloon shares fell 12.86 per cent — or Rs 27.50 — to Rs 186.40
on the Bombay Stock Exchange (BSE).
The stocks fell amid reports that the Centre had put the proposed
opening of retail to FDI in cold storage, said Amar Ambani, head
of research at Mumbai-based IIFL.
On November 24, the Union cabinet had cleared 51 per cent
foreign direct investment (FDI) in the multi-brand retail sector and
had raised the cap on foreign investment in single-brand retailing
to 100 per cent from 51 per cent.
However, the decision met with strong resistance from the
Opposition, as well as United Progressive Alliance (UPA) allies
11. Brand Leadership
Pan India Footprint: Unparalleled reach
Diversified geographical presence
Management Strength
Strong Parentage
Risks and Threats:
Changing Consumer Preferences
Attracting and retaining talent
High fixed cost structure
Slowdown in Indian Economy
12. Benefit to farmers:
7-10% higher price to farmers than what they get from
Mandi
3-4% incentive for the quality of the produce farmers
deliver to Bharti Wal-Mart based on customer requirement
Expert advice on better crop planning and management
Efficient crop calendar management aimed at catching
early and late seasons for better prices
Opportunity to maximize and improve income by offering
better quality
Benefit to stores & customers:
Fresh produce
Local source
Consistent quality
Safer food
Value for money
Lower cost compared to open market buys
13.
14. Primary research in the form of an internet based
survey was used to collect data of qualitative open-
ended nature, using a descriptive approach so that
the report can analyze and interpret the Indian
domestic retail market's opinion towards FDI and
how many people are in favour of various aspects,
as well as ask what changes to policy and the sector
they believe are necessary and why.
RESEARCH DESIGN
OBSERVATIONAL DESIGN
This relates to the conditions, under which, the
observations are to be made and the data
gathered are to be analyzed.
STATISTICAL DESIGN
It is concerned with how many items are to be
15. Research Methods:
1. SURVEY METHOD
2. OBSERVATION METHOD
› Analysis of primary data gathered
› Analysis of historical records
› Analysis of documents
3. STATISTICAL METHOD
› Comparison of reports
› Analysis of consumer responses
› Analysis and Interpretation of different numeric
figures & tables
16. 1. Are you aware of the current FDI in Retail Regulation &
Policy?
No. of Respondents Opinion % Share
237 Yes 79 %
63 No 21%
0
50
100
150
200
250
Yes No
237
63 No. of Respondents
Interpretation:
The first question revealed that 79% of respondents were aware of current
FDI in retail policy, with 21% not being aware. This data shows that a
significant amount of people within the domestic market place are paying an
interest in the current policies
17. 2. Whether the Government decision to permit 51% FDI in
multiband retail?
No of
respondents
Opinion %share
207 Will support 69%
93 Will not support 31%
Interpretation:
This question revealed that 69% of respondents will support government decision while
31% not supported. This data shows people welcome FDI & They thought it is beneficial.
18. 3. Whether Foreign big retails will reduce the purchase from
local stores?
No.Of Respondents Opinion %share
99 Yes 33%
189 No 63%
12 Can’t say 4%
Interpretation:
This question revealed that 33% of respondents were favour of it reduce the purchase from local
stores.63% of respondents were oppose this decision, while 4% can’t say. so we can say that most
of people think not reduce the purchase from local store because they think local store give less
price goods.
19. 4. What is the Impact on farmers over FDI in retail?
No. Of respondents Opinion %share
204 Will benefit 68%
84 Will not benefit 28%
12 Can’t say 4%
Interpretation:
This question revealed that 68% respondents says FDI is beneficial to farmers. While
28% respondents says will not benefit, 4% can’t says. Most of respondents thought that
with the help of FDI they can use latest technology.
20. 5. What is the Impact on consumers over FDI in
retail?No. Of respondents Opinion %share
264 Will benefit 88%
30 Will not benefit 10%
6 Can’t say 2%
Interpretation:
This question revealed that 88% of respondents said it will benefit to consumers.
While 10% said will not benefit, 2% can’t say. So we can say that most of people
said it will benefit to consumer because of FDI consumer can get more choices and
best quality goods.
21. What is the Impact on other Indian industries over
FDI in retail?
No. Of respondents Opinion %share
105 Will benefit 35%
72 Will not benefit 24%
123 Can’t say 41%
Interpretation:
This question revealed that 35% of respondents said it will benefit Indian industries. While 24%
said not benefit, 41% can’t say, .most of people can’t say because it will create negative impact on
Indian industries growth rate.
22. What is the Impact on un-organized retail sector
over FDI in retail?
No. Of respondents Opinion %share
48 Will benefit 16%
234 Will not benefit 78%
18 Can’t say 6%
Interpretation:
From this question revealed that 16% of respondent said it will benefit un-organised sector. While
78% of respondents said it is not beneficial, 6% can’t say. Most of people said will not benefit
because of it create bad impact on un-organized sector.
23. Do you think the Indian Government should open up
Foreign Direct Investment (FDI) restrictions in the Retail
Sector?
No. of Respondents Opinion % Share
251 Yes 84%
49 No 16%
0
50
100
150
200
250
300
Yes No
251
49
No. of Respondents
These results show a strong amount of support for the concept of
opening up FDI, although the data analysis also highlights that there is
still a small but significant (16%) group of people within the domestic
industry who oppose the idea of opening up FDI.
24. Would competition from modern format stores
benefit the customers?
No. of Respondents Opinion % Share
270 Yes 90 %
30 No 10%
90%
10%
Yes
No
Interpretation:Here, the consumers are of the opinion that the healthy competition
between modern stores will benefit them. The major benefits will be in form of
competitive prices, good quality, improved customer services and efficient supply chain
management facilities to the consumers.
25. Do you support introduction of FDI in multi-brand
retail?No. of Respondents Opinion % Share
252 Yes 84%
48 No 16%
Interpretation:
Consumer’s views are in positive direction (84 % answered in ‘Yes’) towards the
introduction of FDI in Multiband Retailing.
Permitting FDI (foreign direct investment) in multi brand retail in a
phased manner beginning with metros and incentivizing the existing
retail shops to modernize could help address the concerns of farmers
26. Do you support the proposal to allow FDI in multi-brand
retail compulsion of 50% of jobs reserved for rural
people?
No. of Respondents Opinion % Share
216 Yes 72%
84 No 28%
72%
28%
Yes
No
72% answered 'Yes'. This means that a number of respondents said yes' believe that
FDI in Multi-brand should be opened up; clearly acknowledge that it would bring
benefits (in terms of investment &employment) to the economy/industry and to society.
27. Should there be a minimum threshold limit for
investment in storage facility for foreign retailers?
No. of Respondents Opinion % Share
222 Yes 74%
78 No 26%
74%
26%
Y…
No
Interpretation: The result here shows that the government should
impose minimum threshold limit for investment in back–end
infrastructure for foreign retailers.
28. Should there be compulsory sourcing of
manufactured products from India?
No. of Respondents Opinion % Share
240 Yes 80%
60 No 20%
80%
20%
Ye
s
Interpretation:
The data collected from Question 8 revealed that 80% of respondents felt that compulsion to
source manufactured products from India should be made by the government to ensure that the
domestic retailers are supported
29. Do you think that the proposed obligation on foreign
investors in retail for minimum amount of sourcing from
rural market would help farmers getting competitive
prices for their products?No. of Respondents Opinion % Share
255 Yes 85%
45 No 15%
85%
15%
Ye
s
Interpretation:
Definitely, it is going to support rural market of India. The foreign investor will compulsorily buy the
products from the farmers in the rural areas and in turn, the farmers will also get the best competitive price
for their products.
30. Do you support setting up a regulator for retail
business in India?
No. of Respondents Opinion % Share
252 Yes 84%
48 No 16%
84%
16%
Ye
s
Interpretation:
84% consumer’s demand is to make a regulatory body which can put
a cap upon foreign investors.
31. Impact on the Consumers
1. FDI in retail sector will increase the rivalry, leading to
the improvement of the quality of goods and
services offered to Indian customers. It will also give
benefits of increased variety and decline prices to
the customers.
2. Presently adulteration is increasing and corruption is
widespread. Induction of foreign players will help in
reducing this and keeping check on the food
standards are bound to improve.
3. Stiff competition will ensure healthy practices
among different players and thus prices and price
inflation will be held in check.
4. Awareness among customers will increase. Thus it will
control the harmful practices of corruption and
black marketing.
32. The organized retailers will benefit from the increased rivalry
and may achieve an efficiency level in a much shorter
span of time. If the foreign retailers focus on support the
back end (which is essential for the success of retail
business), the domestic retailers also stand to gain.
So far the quality of products and services provided by the
domestic organized retail needs a lot of improvement.
The benchmark created by the foreign retailers due to their
experience abroad will force our domestic players to
quickly develop as world class retailers.
The domestic retailers will be under pressure on the credit
accessibility, as the foreign retailers have deep pockets.
Moreover, the foreign retailers will leverage on their global
sourcing capability to provide superior products, thus
putting Indian retailers at a loss.
33. The data and information about the Retail Industry is much more
in amount therefore there is a possibility of having any faulty
interpretation.
The information taken is not of present year and it is of recent
past years, so the picture regarding current situation of Industry
does not gets clear. (Since unavailability of current year reports)
The sources in form of money and time for gathering data were
limited, which may leads to exclusion of any important factor or
topic.
The area of survey is limited to Vadodara City only.
The whole Retail Industry is divided into various segments and
there are various interrelated activities of its all segments so it is
difficult to differentiate them.
There may be any wrong interpretation done because of lack of
knowledge and manual errors.
34. A number of points needed to be kept into concern when opening up FDI:
The opening up of FDI should be phased, over a 5-10 year time frame so as to
permit time for domestic retailers to adjust.
FDI in multi-brand retailing should be kept constrained in the near future, as
Indian retailers would not be able to face this competition immediately.
It is not currently attractive for FDI to be above 51%, even in single brand
retailing. This will allow checking and control of foreign retailer's business
operations, and will help to protect the interests of domestic retailers. However,
the sector cap (equity limit) could be better in due course as it has been in the
telecom, banking and insurance markets.
Certain products that are responsive should not be allowed, for example,
arms/ammunition and military equipment. The excluded products should be
expressly stated in policy.