Indian Retail Market
Changing with changing times
The Indian retail landscape
Modern Retail has seen a significant growth in the past few years with large scale investments made by Indian corporate houses primarily in Food and Grocery retailing in a bid to capture the large potential of the USD 300 Billion market. Foreign apparel brands including luxury brands have set up shop in India through Franchisee / Joint Venture route and have expanded rapidly in the last few years. Multi-brand retailing has currently been banned for foreign investment. For global retailers who have not been seeing large organic growth, India provides a lucrative market for them to grow their top line and profitability. Some global retailers are currently operating in India in the cash and carry (wholesale) format. Few retailers have been designing plans to start their Cash & Carry business to have a market presence and create brand awareness.
The Indian retail sector is poised to witness a sea change. The recent times have seen a significant discussion emanating towards allowing 100% FDI in multi brand retailing. This, if translated to reality, will have a game changing impact on the modern retail sector in India.
To put the large-scale policy change into motion and bring it to actual implementation, it is imperative for the ruling party to obtain buy-in from the opposition, including the Left parties and the BJP. Since the retail sector is the second largest employer after agriculture in India, both these parties have a reservation against opening up of the retail sector to foreign investment.