You cannot fly like Eagle with the wings of Sparrow.

India has emerged as the fifth most favourable destination for international retailers, according to A T Kearney's Global Retail Development Index (GRDI) 2012. "India remains a high potential market with accelerated retail growth of 15-20 per cent expected over the next five years," highlighted in the report.
 The Indian retail industry is pegged at US$ 500 billion and is expected to reach US$ 1.3 trillion by 2020.  In addition, the organised retail is expected to reach 25 per cent by 2020, as per the report of PwC.

You cannot fly like an eagle with the wings of a sparrow.
The much-awaited entry of foreign retail giants such as Walmart, Tesco and Carrefour into the $450 billion retail market has been allowed by Govt. through 51% FDI in retail sector. That's a welcome step and as an economist Mr. PM should have taken this step long before.

Decision taking has been so easy for this Govt. but execution is stiff challenge. Needless to mention the Congress failed to execute many of his decision taken in favour of economy so far. The S&Ps stated that the decision to increase fare by 10 % by Ex railway minister was good one but he had to pay cost for taking good decision. Anyhow after a tussle with current scenario Govt finally took decision to welcome 51% through FDI. The decision faced strong resistance from many state Govt. and even opposition.
Those who are opposing the FDI in retail must understand the very fact related to it. Lakhs of small traders will lose their source of income. But we should not forget this instead will benefits millions of farmers and consumers. A good regulatory measure will not only make consumers worth spending rather it will also enable farmers to get the genuine price of their produce.
In fact those state which are struggling hard for infrastructure and income should try their best to greet the chance. The decision of not welcoming the FDI will turn out to be short-selling idea for the Govt.


The Standard and Poor's rating agency has said that in a pessimistic scenario there is a risk that political problems could prevent the government from containing the growth in current spending, and lower-than-projected GDP growth could result in revenue shortfalls. India was already at BBB rating which with current growth will bring the Economy to the Junk economy. With such a huge opportunity India is still struggling to come out of being junk economy. 


With increasing disposable incomes, expansion of stores and supporting economic factors, India's retail sector is expected to grow to about US$ 900 billion by 2014, according to a report by global consultancy and research firm, PricewaterhouseCoopers (PwC).
Consumer markets in emerging market economies like India are growing rapidly owing to robust economic growth. The retail industry is highly competitive because of ever changing consumer preferences and the need for marketing differentiation. The retail enterprises need to focus on costs throughout the consumer value chain because of proliferation of new products and categories and ever increasing demands to optimise value chains.

Now, its upto State Govt. to decide whether they want their state to develop or to appease their vote bank  the 50+ % who are blank with these opportunities.


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