Retail Sector in India

RETAIL arena IN INDIA
August 2012

1. RETAIL SECTOR IN INDIA
1.1

Overview
Retailing in India is one of the business enterprises of its parsimoniousness and accounts for 14 to
15% of its GDP. The Indian sell market is estimated to be US$ 450 billion and one of the
top five sell markets in the world. India is one of the fastest growing retail markets in the
world. Indias retail industry is essentially owner manned littler shops account for more
than 90%. In 2010, larger format gimmick stores and supermarkets accounted for about
4% of the industry, and these were present only in large urban centres.
Until 2011, Indian central governance denied Foreign Direct investiture (FDI) in multibrand retail, forbidding foreign groups from any ownership in supermarkets, convenience
stores or any retail outlets. Even single-brand retail was expressage to 51% ownership and a
bureaucratic process.
In November 2011, Indias central government announced retail reforms for both multibrand stores and single-brand stores. These market reforms paved the delegacy for retail
innovation and competition with multi-brand retailers such as Wal-Mart, Carrefour and
Tesco, as well single brand majors such as IKEA, Nike, and Apple. The statement flickers
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 bring in in Indian retail market with 100% ownership,
hardly imposed the requirement that the single brand retailer ascendent 30% of its goods from
India. Indian government continues the hold on retail reforms for multi-brand stores.
The Indian retail industry is generally divided into form and unorganized retailing:
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1.2

Organized retailing - Organized retailing refers to trading activities undertaken by
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