...------------------------------------------------- On a cumulative basis, the FDI equity inflows received by India stood at US$ 20.92 billion during April-December 2009, according to the latest data released by the Department of Industrial Policy and Promotion (DIPP). ------------------------------------------------- The Prime Minister's Economic Advisory Council (PMEAC) has pegged India's growth at 8.2 per cent for 2010-11 and 9 per cent in 2011-12, expecting the agriculture, industrial and services sectors to perform well through the next two years. ------------------------------------------------- India's industrial output grew at its fastest year-on-year pace in almost two decades at 16.8 per cent in December 2009, signalling a strong recovery. The manufacturing sector that constitutes around 80 per cent of industrial output, expanded by 18.5 per cent to set the pace of growth. ------------------------------------------------- India ranks second with 117 points in consumer confidence in the fourth quarter of 2009, according to the Nielsen Global Consumer Confidence survey. ------------------------------------------------- The Indian retail market, which is the fifth largest retail destination globally, has been ranked as the most attractive emerging market for investment in the...
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...FDI in India’s retail sector: Is it win-win game? By: Sharad Pandey Foreign Direct Investment (FDI) is defined as cross-border investment, where investment is made by a foreign country or organization in another country’s domestic market. The issue of FDI has been a debatable topic in India for years now, since government started promoting it. But is it really going to help the Indian economy? Yes, it will, as it will help farmers. In fact, farmers are not the only ones who will benefit from it, society as a whole will be a beneficiary. For the past few years opposition governments have, and are still opposing FDI in India’s retail sector. Watching political parties switch position on the issue of FDI in the retail sector is a bit interesting, and a drama to watch. It is interesting to note that, when BJP was in power, they came up with the idea of allowing FDI in the retail sector, but was opposed by ”Congress'’, which was then serving as opposition political party. When Congress came to power few years ago, it wanted to adopt a policy of allowing FDI into India’s retail sector, but this policy has met stiff resistance from the BJP. The changing position of the Country’s top political parties suggests that both the parties know that FDI it is good for the country. Each political party wants the policy to be effectuated under its leadership so that most of the benefits...
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...------------------------------------------------- https://www.fresherslive.com/current-affairs ------------------------------------------------- Sectors[edit] Percent labor employment in India by its economic sectors (2010).[110] The GDP contribution of various sectors of Indian economy have evolved between 1951 to 2013, as its economy has diversified and developed. Historically, India has classified and tracked its economy and GDP as three sectors — agriculture, industry and services. Agriculture includes crops, horticulture, milk and animal husbandry, aquaculture, fishing, sericulture, aviculture, forestry and related activities. Industry includes various manufacturing sub-sectors. India's definition of services sector includes its construction, retail, software, IT, communications, hospitality, infrastructure operations, education, health care, banking and insurance, and many other economic activities.[111][112] Agriculture[edit] Rice fields near Puri, Odisha on East Coast Main articles: Agriculture in India, Forestry in India, Animal husbandry in India, Fishing in India and Natural resources in India India ranks second worldwide in farm output. Agriculture and allied sectors like forestry, logging and fishing accounted for 17% of the GDP and employed 49% of the total workforce in 2014.[113] As the Indian economy has diversified and grown, agriculture's contribution to GDP has steadily declined from 1951 to 2011, yet it is still the largest employment source...
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...Vol. 3, Issue 1, January 2014 FAST MOVING CONSUMER GOODS RETAIL MARKET, GROWTH PROSPECT, MARKET OVERVIEW AND FOOD INFLATION IN INDIAN MARKET – AN OVERVIEW RALLABANDI SRINIVASU Professor & Director –Operations, St. Mary’s Group of Institutions, Hyderabad, India. Abstract:The fast-moving consumer goods (FMCG) sector is an important contributor to India’s GDP. Fast moving consumer goods (FMCGs) constitute a large part of consumers’ budget in all countries. This study is aimed at to shed light on competitive conditions prevailing in the FMCGs retail trade sector. This study also focused on the analysis of competitive within the sector, and draws lessons for competition policy. FMCG Industry is characterized by a well established distribution network, low penetration levels, low operating cost, lower per capita consumption and intense competition between the organized and unorganized segments. India’s FMCG sector creates employment for more than three million people in downstream activities. It is currently growing at double-digit rate and is expected to maintain a high growth rate. Indian buyers were a bit conservative partly due to lesser disposable income and partly due to fewer competitive and more variety of products. Food inflation could restrict consumers’ demand and pricing flexibility for FMCG while lowering consumers’ purchasing power that diverts purchases away from certain FMCG. Keywords: FMCG, Indian FMCG Retail Market, FMCG Growth Prospect, FMCG Market overview, FMCG...
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...FDI IN RETAIL SECTOR GOOD? · FDI means foreign direct investment. · All foreign retailers to own upto 51% in retail. · Government has presently 51% FDI in single brand retail. · Government of India proposed 100% FDI in single brand retail & 51% in multi-brand retail. · Presently multi-brand is largely in the unorganised sector, dominated by neighbourhood kirana stores. · Reports suggest around $15-20 billion could flow into the country over the next 10 years as a result of FDI in retail. · Presently the organised sector only accounts for 6% of the total retail in India. · Almost all developed countries have FDI, do we want to lag behiend. · It will generate many jobs in retail sector. · Will benefit the farmers. · Will provide them good prices for the crops. · Will eliminate the middlemen. · Will modernize the supply chain. · Will increase the competition in the retail market. · Access to larger financial resourses. · Can negotiate prices more aggresively from the manufacturers and pass on the benefits to the customers. · Better and tighter quality standards. · It will certanily make shopping a pleasant experience. · It may benefit even the kirana shops, they can buy from the supermarket and sell it to their respective customers. · Indian products may also enter global market. · Organised trade employes 5 lakh people & unorganised employs 4 crore. · Amongst the top 3 sectors of India which generates employment. · Looking at the example of US, we now know...
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...billion during 2012–25 The overall rural FMCG consumption continues to grow at 12.5 per cent during 2013-14 Total consumption expenditure to reach nearly USD3,600 billion by 2020 from USD1,328 billion in 2012 Source: World Bank, Emami Reports, Dabur Reports, AC Nielsen, McKinsey Global Institute (MGI) titled The Bird of Gold, Booz & Company, Aranca Research India’s working population to be more than double the total population of the US (361.6 million) by 2030 950 900 850 800 750 700 CAGR: 0.8% 780 2011 2030 2011 200 267 100 0 2011 800 600 400 200 0 Working population (aged between 15 and 64 years) estimated to increase from 780 million in 2011 to 900 million by 2030 160 2016 2011 Rural India’s per capita disposable income set to increase 2030 CAGR: 10.8% 300 India’s middle income class to be thrice the total population in Germany by 2016 900 India’s middle income population estimated to reach 267 million by 2016 from 160 million in 2011 2016 CAGR: 4.3% 631 411 2010 2010 2020 Rural India’s per capita disposable income is estimated to rise to USD631 in 2020 from USD411 in 2010 2020 Source:...
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...GROWTH AND CHALLENGES OF RETAIL INDUSTRY IN INDIA: AN ANALYSIS SUNITA SIKRI & Ms. DIPTI WADHWA Assistant Professor M.L.N College Yamuna Nagar-Haryana ABSTRACT The Indian Retail Industry is the fifth largest in the world. Comprising of organized and unorganized sectors, Indian retail industry is one of the fastest growing industries in India, especially over the last few years. Though initially the retail industry in India was mostly unorganized, however with the change of taste and preferences of consumers, the Industry is getting more popular these days and getting organized as well. The Indian Retail Industry is expected to grow from US$330 billion in 2007 to US$640 billion by 2015. According to the 10th Annual Global Retail Development Index (GRDI) of A.T. Kearney, India is having a very strong growth fundamental base that’s why it’s the perfect time to enter into Indian Retail Market. Indian Retail Market accounts for 22% of country’s GDP and it contributes to 8% of the total employment. The total retail spending is estimated to double in the next five years. Of this, organized retail –currently growing at a CAGR of 22%- is estimated to be 21% of total expenditure. The unorganized retail sector is expected to grow at about 10% per annum with sales expected to rise from $309 billion in 2006-07 to $496 billion in 2011-12. This paper focused on changing face of Retail Industry, organized or unorganized retail industry, major players in retail industry and also highlights...
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...Multi Brand Retail 1. Overview of the industry: Retailing in India is one of the pillars of its economy and accounts for 14 to 15 percent of its GDP. The Indian retail market is estimated to be US$ 500 billion and one of the top five retail markets in the world by economic value. Comprising of organized and unorganized sectors, Indian retail industry is one of the fastest growing industries in India. The organised retail trade accounts for merely 8-10% of the total retail. According to the 10th Annual Global Retail Development Index (GRDI) of A.T. Kearney, India is having a very strong growth fundamental base. India's retail market is expected to grow at 7% over the next 10 years, reaching a size of US$ 850 billion by 2020. Traditional retail is expected to grow at 5% and reach a size of US$ 650 billion (76%), while organized retail is expected to grow at 25% and reach a size of US$ 200 billion by 2020. The Government of India had been considering opening up the Multi Brand Retail Trade (MBRT) sector to FDI for some time. They had released a discussion paper in 2010 on the topic and had extensively gathered public, academic and industry views on the issue. In November 2011, the Government came out with its proposal for the new FDI policy. However, unable to achieve political consensus on the issue, they had to shelve their plans for the enactment of the policy. Finally the Government decided to pass the new FDI policy on MBRT in September 2012. 2. Growth over last few...
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...SYMBIOSIS CENTRE FOR MANAGEMENT STUDIES Theme: - “Issues and Challenges in Retail Sector and Foreign Direct Investment India and across the World” FDI AND RETAIL TOGETHER: An Overview By Rakesh Soni (11bbl114@nirmauni.ac.in) PH. NO- 8690976530 Peeyush Purohit (11bbl091@nirmauni.ac.in) PH. NO- 7597907007 INSTITUTE OF LAW NIRMA UNIVERSITY AHMEDABAD INTRODUCTION INDIAN RETAIL MARKET Retailing can be defined as a business activity, which offers products or services in small quantities to ultimate consumers, at a place where consumers prefer to buy. India is one of the largest emerging markets, with a population of over one billion. India is one of the largest economies in the world in terms of purchasing power and has a strong middle class base of 300 million. Around 70 per cent of the total households in India (188 million) reside in the rural areas, where mostly traditional retail outlets, commonly called “kirana” stores exist. These are unorganized, operated by single person and runs on the basis of consumer familiarity with the owner. However, recently organized retailing has become more popular in big cities in India and most of the metropolitan cities and other big cities are flooded by modern organized retail stores. India’s growing retail boom is a success story. With strong fundamentals developing in the Indian economy in the liberalized environment since 1991 with changes in income levels, lifestyles, taste & habits...
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...FDI IN RETAIL: BENEFICIAL OR DETRIMENTAL AND IT’S FUTURE AFFECT ON INDIAN ECONOMY BY HARJOT KAUR PARMAR (UGC NET, MBA, PGDM, BBA,) ABSTRACT FDI is a type of investment that involves the injection of foreign funds into an enterprise that operates in a different country of origin from the investor. Regardless of today’s crisis, India is considered as one of the most superlative place by foreign investors because of its increasing young population and rising disposable income among the middle class society, that is why large corporations like walmart are showing keen interest in initiating there retail operations in India. But mass round of discussions and debate has started after Government decision on 14 September 2012 allowing FDI in aviation up to 49%, in the broadcast sector up to 74%, in multi-brand retail up to 51% and in single-brand retail up to 100% with high level of disagreement and resistance from the opposition who believe that entry of Big Corporations in retail sector will badly effect the crores of retail shopkeepers and vendors resulting in depart of kirana stores, Whereas government is in favor and believe that it will generate large scale of employment, benefit both farmers as well as consumers and will help in reducing inflation. This research paper aim is to find why foreign investors are attracted towards India, find arguments in favor and against of FDI and what will be its effect on Indian economy in future, whether FDI will be favorable...
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...FDI in Retail India: Impact on Farmers, Consumers and Industry Nilesh Kate, Research Scholar Sinhgad Institute of Management and Computer Application, Pune nileshkate503@gmail.com 9096714133 ****************************************************************************** Abstract: The retail sector in India is expanding and modernizing rapidly in line with India's economic growth. It acts as a major catalyst in the development of a country through up-gradation of technology, managerial skills and capabilities in various sectors. Rise in purchasing power, growing consumerism and brand proliferation has led to retail modernization in India. The growing Indian market has attracted a number of foreign retailers and domestic corporate to invest in this sector. FDI in the retail can expand markets by reducing transaction and transformation costs of business through adoption of advanced supply chain and benefit consumers and suppliers (farmers). The overall retail market (organized and unorganized) is expected to grow at a compounded rate of 15% over the next 5 years from INR 23 trillion in 2011-12 to INR 47 trillion in 2016-17. Rising incomes will be the primary driver of this growth. Favorable demographics, increasing urbanization and nuclearisation of families are other factors which will drive retail consumption in India. Organized retail, which constituted a low 7% of total retail in 2011-12, is estimated to grow at a CAGR of 24% and attain a 10.2% share of total retail by 2016-17...
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...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 India's retailing industry is essentially owner manned small shops. In 2010, larger format convenience stores and supermarkets accounted for about 4% of the industry, and these were present only in large urban centers. India's retail and logistics industry employs about 40 million Indians. Until 2011, Indian central government denied foreign direct investment (FDI) in multibrand retail, forbidding foreign groups from any ownership in supermarkets, convenience stores or any retail outlets. Even single-brand retail was limited to 51% ownership and a bureaucratic process. In November 2011, India's central government announced retail reforms for both multi-brand stores and single-brand stores. These market reforms paved the way for retail innovation and competition with multi-brand retailers such as Walmart, Carrefour and Tesco, as well single brand majors such as IKEA, Nike, and Apple. The announcement sparked intense activism, both in opposition and in support of the reforms. In December 2011, under pressure from the opposition, Indian government placed the retail reforms on hold till it reaches a consensus. In January 2012, India approved reforms for single-brand stores welcoming anyone in the world to innovate in Indian retail market with 100%...
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...Foreign Direct Investment in India | The fast and steadily growing economy of India in majority of its sectors, has made India one of the most famous and popular destinations in the whole world, for Foreign Direct Investment. India's ever-expanding markets, liberalization of trade policies, development in technology and telecommunication, and loosening of diverse foreign investment restrictions, have further collectively made India, the apple of investors' eye, for most productive, profitable, and secure foreign investment. According to a recent survey by the United Nations Conference on Trade and Development (UNCTAD), India has conspicuously emerged out as the second most popular and preferable destination in the entire world, after China, for highly profitable foreign direct investment. In recent years, bulk of the foreign direct investment in indian business sectors of infrastructure, telecommunication, information technology, computer hardware and software, and hospitality services, have been made by investors of countries like US, UK, Mauritius, Singapore, and many others. Global Jurix, one of the leading full-fledged legal organizations of India with global repute, has been helping companies, business corporations, organizations, and other potential investors of countries all around the world, in making foreign direct investment in indian business sectors, in various ways described in the section below. | FDI - Inbound and Outbound | The Foreign Direct Investment...
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...family was running 24 stores bringing in $12.7 million in sales. By 2012, the company served more than 200 million customers each week, employed 2.2 million associates worldwide, in more than 10,000 stores in 27 countries. After waiting years to open a “Superstore” in India, ambitious plans to expand in the country have seized to continue. India, the world’s largest retailer, has a difficult time with the regulations of the country as well as finding a foreign chain to help invest in the country’s $400 billion retail sector (Pasricha, 2013). Walmart has said it would end its joint venture with Bharti Enterprise Limited amid continued difficulties navigating regulations on foreign investments. To continue the organizational success Walmart has achieved, the organization will need to continue to research several key factors. These factors include: India’s restrictive rules on foreign firm operations, the target market blunder, Walmart’s past efforts to penetrate the retail industry in India, and any challenges encountered in partnership with Bharti. Walmart ceases operations in India because of failed partnership and restrictive government regulations on foreign investments. Walmart’s Ethics Walmart set its business foundation on values and ethics that leads the company. The values that direct the company and leadership are three fundamental beliefs, which are respect, exceptional service to customers, and striving for excellence. Walmart’s guiding principles are put in position...
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...scenario of India, the dynamic of retail have also undergone a sea change. Product, place, price, promotion, people and process play important role in retailing. On the other hand, physical evidence is one aspect that does not need any emphasis at all due to changing consumers’ mindset. As per the study, there are number of elements that characterize the retail industry in India and these are as follows: (i) It is a people-centric industry. (ii) A highly service-oriented sector. (iii) Demand drivers are more location specific. (iv) When there is a holiday or festival for the general public it is peak time for retailers. Goyal and Aggarwal (2009) opine that...
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