India Opens up Retail Industry to Foreign Investors
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indian markets are already full with made in ***** crap. super stores will not introduce it for the first time.
russellpeters
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great decision...slowly all sectors of our economy have to become organised....this 7% share should atleast be 50% considering the rapid urbanisation of india, and the need for organized retail. and of course that 50% need not be all foriegn retail.
People have to understand that foriegn retailers are already sourcing materials from our country. they will bring know how, maturity, competition. not to talk about millions of dollars of investment in cold supply and now that we have a good road network (almost) in place, and a great freight network in a few years, a capable cold supply chain is urgently needed.we lose 40% of our fruit output due those rickety trucks that are used. cold store and cold supply are undeveloped. also will come best practices, management know how, investments,
fully support the decision...
People have to understand that foriegn retailers are already sourcing materials from our country. they will bring know how, maturity, competition. not to talk about millions of dollars of investment in cold supply and now that we have a good road network (almost) in place, and a great freight network in a few years, a capable cold supply chain is urgently needed.we lose 40% of our fruit output due those rickety trucks that are used. cold store and cold supply are undeveloped. also will come best practices, management know how, investments,
fully support the decision...
CorporateAffairs
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As per my knowledge, a few advantages India has over 100% FDI:
Foreign investors who earlier wanted to foray only in "Multi-brand" retail and not the watered down avatar of wholesale cash and carry will now be keen to enter into India.
Hike in the limit for FDI in single brand join venture, will enable foreign investors to increase their stake in the existing ventures where the Indian join venture partners are unable to further capatilize the ventures keeping their 49% stake in perspective.
Global single brand players who did not want to enter into India earlier becoz of 51% cap prescribed for single brand retail should be interested in investing into India now.
Foreign investments are already existing in large and medium Indian retailers to address their funding needs.
The rationale adopted by Govt. of India for opening up of the retail sector to foreign investors is as follows:
Although India is second largest producer of fruits and vegetables, India lacks an integrated and storage facilities. Inefficient supply chain infrastructure is evident from the fact that 35%-45% of the food grains in India are wasted.
(Indian agriculture, farming, poultry is expected to grow 5 folds with greater infrastructure)
>100% permitted in FDI in cold-chain storage has failed to attract desired foreign investment, in the absence of FDI in front -end retail, leading to losses to farmers in terms of higher prices, wastage of quality and quantity of produce.
The opening up of FDI in retail with the condition of 50% mandatory investments in back-end infrastructure should help in overcoming the above supply chain inefficiencies. Back-end like processing, manufacturing, distribution, design improvement quality control, packaging, logistics, market produce infrastructure etc.
Expenditure on land cost and rentals, if any, will not be counted for purposes to back end infrastructure.
Way to go INDIA
Foreign investors who earlier wanted to foray only in "Multi-brand" retail and not the watered down avatar of wholesale cash and carry will now be keen to enter into India. Hike in the limit for FDI in single brand join venture, will enable foreign investors to increase their stake in the existing ventures where the Indian join venture partners are unable to further capatilize the ventures keeping their 49% stake in perspective. Global single brand players who did not want to enter into India earlier becoz of 51% cap prescribed for single brand retail should be interested in investing into India now. Foreign investments are already existing in large and medium Indian retailers to address their funding needs.The rationale adopted by Govt. of India for opening up of the retail sector to foreign investors is as follows:
Although India is second largest producer of fruits and vegetables, India lacks an integrated and storage facilities. Inefficient supply chain infrastructure is evident from the fact that 35%-45% of the food grains in India are wasted.(Indian agriculture, farming, poultry is expected to grow 5 folds with greater infrastructure)
>100% permitted in FDI in cold-chain storage has failed to attract desired foreign investment, in the absence of FDI in front -end retail, leading to losses to farmers in terms of higher prices, wastage of quality and quantity of produce. The opening up of FDI in retail with the condition of 50% mandatory investments in back-end infrastructure should help in overcoming the above supply chain inefficiencies. Back-end like processing, manufacturing, distribution, design improvement quality control, packaging, logistics, market produce infrastructure etc. Expenditure on land cost and rentals, if any, will not be counted for purposes to back end infrastructure.Way to go INDIA
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