Introduction Just back from first frenzied shopping experience in the UK, a four year old ever-inquisitive daughter

asked to her father, Why do we not have a Harrods in Delhi? Shopping there is so much fun! Simple question for a four-year-old, but not so simple for her father to explain. As per the current regulatory regime, retail trading (except under single-brand product retailing FDI up to 51 per cent, under the Government route) is prohibited in India. Simply put, for a company to be able to get foreign funding, products sold by it to the general public should only be of a single-brand; this condition being in addition to a few other conditions to be adhered to. That explains why we do not have a Harrods in Delhi. India being a signatory to World Trade Organisations General Agreement on Trade in Services, which include wholesale and retailing services, had to open up the retail trade sector to foreign investment. There were initial reservations towards opening up of retail sector arising from fear of job losses, procurement from international market, competition and loss of entrepreneurial opportunities. However, the government in a series of moves has opened up the retail sector slowly to Foreign Direct Investment (FDI). In 1997, FDI in cash and carry (wholesale) with 100 percent ownership was allowed under the Government approval route. It was brought under the automatic route in 2006. 51 percent investment in a single brand retail outlet was also permitted in 2006. FDI in Multi-Brand retailing is prohibited in India. Definition of Retail In 2004, The High Court of Delhi[1] defined the term retail as a sale for final consumption in contrast to a sale for further sale or processing (i.e. wholesale).A sale to the ultimate consumer. Thus, retailing can be said to be the interface between the producer and the individual consumer buying for personal consumption. This excludes direct interface between the manufacturer and institutional buyers such as the government and other bulk customersRetailing is the last link that connects the individual consumer with the manufacturing and distribution chain. A retailer is

involved in the act of selling goods to the individual consumer at a margin of profit.
L ite ra tu re R e v ie w
I n d i a t o p s t h e A T K e a r n e y 's a n n u a l G l o b a l R e t a il D e v e l o p m e n t I n d e x ( G R D I ) fo r th e th ir d c o n s e c u t iv e y e a r , m a in t a in in g it s p o s itio n a s t h e m o s t a t tr a c t iv e m a r k e t fo r r e t a il in v e s t m e n t . T h e I n d ia n r e t a il m a r k e t , w h ic h is th e fift h la r g e s t r e t a il d e s tin a t io n g lo b a lly , a c c o r d in g t o in d u s tr y e s tim a t e s is e s tim a t e d t o g r o w fr o m t h e U S $ 3 3 0 b illio n in 2 0 0 7 t o U S $ 4 2 7 b illio n b y 2 0 1 0 a n d U S $ 6 3 7 b illio n b y 2 0 1 5 . S u b s e q u e n tly , o r g a n iz e d r e t a il is lik e ly to in c r e a s e it s s h a r e in t h e t o t a l r e t a il m ark et to 2 2 p er cen t b y 2 0 10 . I n d i a 's v a s t m i d d l e c l a s s w it h i t s e x p a n d i n g p u r c h a s i n g p o w e r a n d i t s a l m o s t u n t a p p e d r e t a il in d u s tr y a r e k e y a ttr a c t io n s fo r g lo b a l r e t a il g ia n t s w a n t in g t o en ter n ew er m ark ets. W it h in t e r n a t io n a l b r a n d s lik e T o m m y H ilfig e r , E s p r it a n d P u m a (t h a t h a v e e n t e r e d th e c o u n tr y ) g r o w in g w e ll o v e r 1 0 0 p e r c e n t , m a n y o th e r s a r e a ls o p la n n in g t o fo r a y in t o t h e I n d ia n r e t a il m a r k e t . T h e G o v e r n m e n t a llo w s 1 0 0 p e r c e n t fo r e ig n d ir e c t in v e s t m e n t ( F D I ) in c a s h a n d c a rr y th r o u g h th e a u to m a tic r o u te a n d 5 1 p e r c e n t in sin g le b r a n d . B e s id e s , th e fr a n c h is e r o u t e is a v a il a b l e fo r b ig o p e r a t o r s . T o fu r th e r a ttr a c t g lo b a l r e t a ile r s , t h e e c o n o m ic s u r v e y 2 0 0 7 - 0 8 h a s s u g g e s t e d a s h a r e fo r fo r e ig n e q u ity in a ll... I m p a c t o f F D I in I n d ia

Fdi In Retail Market In India

Impact of FDI on Indian Organized retail players Introduction The Indian Retail Industry is the largest amongst all the industries, accounting for over 10 percent of countrys GDP and 8 percent of employment. The retail industry has come forth as one of the most dynamic and fast paced sector with several players entering the market. Though, the Indian retail sector is majorly unorganised but the organised sector is also making giant strides. The total concept and idea of shopping has undergone an attention drawing change in terms of format and consumer buying behaviour. The Indian economy has been booming ever since India came out of the shackles of imperialism and emerged as a politically, socially as well as financially independent nation. Although India attained its freedom more than about sixty years ago, the emergence of the Indian economy on the global scene has been a rather recent development. This is because of the realization of the true economic growth potential of India, by the foreign investors a s w e ll a s b u s in e s s h o u s e s . T ill a b o u t t h e r e c e n t t im e s . I n d ia c o n t in u e d t o b e a w h o le so u l a g ric u ltu r a l e c o n o m y , w h ic h h a d b e e n im p r e g n a t e d w it h v a r io u s t y p e s o f b e a u r o c r a c y , e x p lo it a tio n a n d c o r ru p tio n . I n sp ite o f th is, th e w e ste r n e rs sa w tr e m e n d o u s p o te n tia l in I n d ia to d e v elo p a s a n e c o n o m ic a lly s tr o n g a d o b e fo r in v e s tm e n t a n d p lo u g h in g in o f c a s h in o r d e r to s ta r t o ff a n e w v e n t u r e . B u t till r e c e n t ly , t h e r e w e r e v a r io u s ju r is d ic tio n s p r e v a le n t in th e c o d e o f la w in I n d ia , t h a t p r e v e n t e d t h e fu ll s tr e n g t h in fl o w o f fo r e ig n d ir e c t in v e s t m e n t in I n d ia . B u t fo r tu n a t e ly fo r a ll, t h e I n d ia n g o v e r n m e n t w a s q u ic k t o r e a liz e th e a c t u a l p o te n tia l e m b a ttle d

in th e I n d ia n e c o n o m y a n d w h a t w a s h o ld in g it b a c k . T h e m a in r e a s o n s fo r t h e c h a n g e s in t h e o r g a n is e d r e t a il fo r m a t a r e : * R isin g I n c o m e s a n d c o n se q u e n t in c r e a se in d isp o sa b le in c o m e . * L a r g e w o r k in g p o p u la tio n w ith m e d ia n a g e o f 2 4 y e a r s. * ...