MIT SCHOOL OF BUSINESS

RETAIL AND MERCHANDISE

MANAGEMENT

ASSIGNMENT NO. 1

SUBMITTED BY

NILAMBARI BABAR

340459

DIV: B
Increase in consumer ambition and the growth in middle class as well as higher
class profile is somewhere helping in the consumption of economy. There is
more scuffle among the retailers which is creation millions of chances in
domestic markets.
Factors responsible are:
Low income: as most of the population hail from rural India with a
agricultural background so they believe in saving.
Poor infrastructure: India is still a developing nation and before pre
liberalization it was underdeveloped so the infrastructure is not yet very
strong.
Inadequate industrialization: being a developing nation the industrial
growth is very slow and it is very difficult for an individual to start a
business easily in indie so even foreign investments are not so keen to
enter Indian markets.
Political instability
In 2006 government allowed 52% FDI through single brand route and being
single brand retail it stood at 196 million by year 2010. The present govt. is
definitely in support of FDI the new policies which are framed to boost up the
Indian market.
Indian retail market continue largely off limits to huge international retailers.
The evolution and change in the India retail sector has caused in many
experiments for the retail industry.