New Guide to India’s New FDI Rules by Euromonitor International27 Jan 2012 • by Natalie Aster
This report examines one of the most anticipated events in retailing: the relaxation of FDI restrictions in India’s retail market. It analyses in detail the proposed changes to current legislation, and also investigates areas of future growth within the Indian retail market. The briefing focuses on the potential benefits and challenges for foreign companies, although consideration is also given to Indian retailers operating in the market.
The Indian cabinet has proposed three options for foreign direct investment (FDI). The first is single brand retail with a maximum of 51% equity share. The second is multi-brand retail with a maximum of 51% equity share. The final option is single brand retail with up to 100% equity share.
According to the report “A Guide to India’s New FDI Rules and What They Mean for Foreign Retailers” by Euromonitor International, the dominance of “kiranas” in the Indian grocery retail market reflects the importance of local retailing in India. Whilst organised retail has grown dramatically since 2006, 96% of the revenue in the Indian retail market is generated by small independent stores.
With strong political and social opposition, there is no guarantee that India’s government will be able to change current FDI legislation soon. While the entry of foreign retailers will quicken the pace of change, domestic organised retail will continue to have an impact on the retail landscape.
A Guide to India’s New FDI Rules and What They Mean for Foreign Retailers
Published: December 2011
Price: US$ 2.000,00
Why buy this report?
- Get a detailed picture of the Retailing market;
- Pinpoint growth sectors and identify factors driving change;
- Understand the competitive environment, the market’s major players and leading brands;
- Use five-year forecasts to assess how the market is predicted to develop.
More information can be found in the report “A Guide to India’s New FDI Rules and What They Mean for Foreign Retailers” by Euromonitor International.
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