in addition to the aforementioned already existing conditions: in single brand product retail trading in India beyond 51 percent will have to source 30 percent of their goods from "Indian" small industries, vil- lage industries and cottage industries, artisans and craftsmen. economy seeks to gain with such relax- ation are: and marketing; goods for the consumer; goods from India; enterprises through access to global designs, technologies and manage- ment practices. of the fastest growing sectors with huge growth potential. Total retail market in India is estimated to reach USD $573 billion by 2012-13. Organized retail industry accounts for only 5.5 percent of total retail industry and is expected to reach 10 percent by 2012. is the billion-plus person population. Also, there are huge employment opportunities in the retail sector in India, not to mention cheaper procurement and labor. India's retail industry is its second largest sector, after agriculture, which provides employment. There is a huge industry with hardly any large players. In addition to these factors, improved living standards and continuing economic growth, friendly business environment, growing purchasing power and increasing number of conscious customers aspiring India are also attracting global retailers to enter the Indian market. Indian market destinations for the investment of funds from an impressive number of foreign investors. Undoubtedly, with the further relaxation in the FDI norms, there is a lucrative opportunity for foreign players to enter one of the biggest territorial mar- kets and reach out to a large customer base. It is also imperative that the play- ers participate in market expansion by getting introduced in the Indian markets sooner than their competitors. The growth rate trend of the Indian industry together with the changing con- sumer inclination (such as increased use of credit cards, brand consciousness and the growth of population) are factors that encourage a foreign player to establish outlets in India and tap the huge Indian market. At present, most major global brands and retailers who are not yet in India are assessing the Indian market with keen interest, recognizing its strengths as a retail destination. It is widely speculated that major brands like Pavers England, Ikea, Gap and Starbucks, etc. have either already set the machinery running in or- der to make a timely entry in India or are seriously considering making the move. Furthermore, international brands that had already partnered with an Indian partner now can go solo without diluting their stake in the Indian market. With the relaxation of norms, opening up of the market and pro-investment attitude of the government, this is the ideal time for prospective foreign players to make an earnest start in a major retail market, as India has finally stepped be- yond the brink of further liberalization. |