Allowing foreign retailers to take stakes of up to 51 percent in supermarkets would attract much-needed capital from abroad and ultimately help unclog supply bottlenecks that have kept inflation stubbornly close to a double-digit clip.
Allowing foreign retailers to take stakes of up to 51 per cent in supermarkets would attract much-needed capital from abroad and ultimately help unclog supply bottlenecks.
|Foreign retailers eye wholesale as politics blocks retail FDI - ashio-midori.com Business||The Bharatiya Janata Party BJPthe frontrunner in the ongoing general elections if opining polls are to be believedhas openly come out against foreign investment in multi-brand retail.|
|Gaining access||Once the new Government is formed, it might re-think its strategy as bringing down inflation is going to be of prime concern. FDI is expected to help improve supply chain efficiencies for retailers, thereby bringing down the cost of goods.|
|Global Retail News » Asia||After the government allowed 51 per cent FDI in multi-brand retail in Septembermany global retailers have moved to make their presence felt in the Indian market. Moreover, India is expected to witness steady economic growth over the next few years, far outpacing that of most major Asian economies.|
Foreign retailers have Indian partners in wholesale operations now but have no retail presence in the country of 1. Tesco welcomed the decision but said it hoped to see more detail on it.
Tesco currently has a franchise arrangement with Tata Group's Star Bazaar hypermarket chain, supplying merchandises to outlets in India. Related Articles 24 Nov Abhishek Manu Singhvi, spokesman for the ruling Congress party, called the decision "centrist and reasonable".
Millions of small retail traders vigorously oppose competing with foreign giants, potentially providing a lightning rod for criticism of the ruling Congress party ahead of crucial state elections next year. The new rules may commit supermarkets to strict local sourcing requirements and minimum investment levels aimed at protecting jobs, according to local media.
Under fire for a slow pace of reform, Prime Minister Manmohan Singh's embattled government appears to be slowly shaking off a string of corruption scandals to focus on policy changes long desired by investors.
Political opponents of the proposal, with an eye to the ballot box, argue an influx of foreign players will throw millions of small traders out of work in a sector that is the largest source of employment in India after agriculture.
India's biggest listed company, Reliance Industries, was forced to backtrack on plans in to open Western-style supermarkets in Uttar Pradesh after huge protests from small traders and political parties.
The main opposition Bharatiya Janata Party BJP opposes opening up the retail sector, arguing that letting in "foreign players with deep pockets" would bring job losses in both the manufacturing and service sectors.
Consolidated markets make the consumer captive," the BJP's leaders of the upper and lower houses of parliament said in a statement before the decision.Mar 24, · "Foreign retailers deliver an [inexpensive] product that is not perceived as a uniform," says Marshal Cohen, chief retail analyst at the Port Washington, N.Y.-based NPD Group.
"They offer what you want, when you want it, as well as self-expression through fashion." Not every foreign import has succeeded. As retailers struggle in their home markets, India could be the next bright spot for the industry, especially since the government has allowed % foreign ownership in businessto-business (B2B) ecommerce businesses and for retailers that sell food products manufactured in India.
The government has proposed allowing single-brand retailers (such as the furniture giant IKEA) to wholly own stores in India, while multi-brand retailers (like Wal-Mart and Carrefour) can own a 51 percent stake.
Nov 24, · India opens up to foreign retailers Foreign retailers have Indian partners in wholesale operations now but have no retail presence in the country of billion people. with an eye to the.
"Foreign Retailers Eye India" Essays and Research Papers Foreign Retailers Eye India 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.
Nov 25, · Mr. Singhal and other analysts say India needs significant foreign investment to help establish a modern retail industry and a more efficient supply system. Modern stores make up about 5 percent of India’s $ billion retail industry, with the rest made up of corner stores and other small enterprises.