Hard Times for Domestic Retailers in India

September 24, 2007	(1 votes, average: 2 out of 5)  Loading ...
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India is stepping up its efforts to bring greater transparency in real estate by making the sector a little organized. This first and foremost step is to think about the ways to prevent large domestic players from displacing traditional grocery stores.

In reply to a question on when India will pave up the ways for FDI in it’s over 330-billion dollar retail market to foreign investments, Kamal Nath, the Commerce and Industry Minister on the first Pravasi Bharatiya Divas New York 2007 says that the issue is actually regarding large realty players versus small retailers and not the FDI.

Is the statement really alarming for large retail players in India? Or does it mean that retailers require preparing themselves to close shop anytime, Nath said that this is a matter to be better handled by the Consumer Affairs Ministry.

The government envisages promoting incremental growth in the retail sector. However, it is difficult to calculate the number of small retailers that have been displaced by big corporates.

There is no restriction on foreign investments for creating logistics or providing back end operations in an area where the government allows 100% FDI. The US retail giant is confident of getting more B2B for its back end operations in India than retail customers in other countries where it has its operation centers.

Wal-Mart has recently entered into a joint collaboration with Indian conglomerate Bharti Enterprises for the latter’s retail venture.

News Published Under:   Retail Market in India |

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