Impact of FDI in Multi Brand Retailing

FDI in Multi-Brand

Retail business is in the transition phase not only in India but also in South Asian economies. In India, retail is second largest sector which offers employment to work force after agriculture sector. This is the sector which offers employments to all irrespective of age, gender, qualification. 

In India, boom in retail industry occurred after 1991 when various multinational retailers decided to enter in Indian market. The worth of Indian retail industry is more than $ 600 and it is consistently growing. In the last couple of the years, India has become one of the most attractive retail destinations in the world  and it is ranked as a fifth attractive retail destination in the world. Indian retail market is dominated by unorganized retailing which hold 90% of the market share. Contrary to India, the market share of organized retailing in China, Indonesia, Thailand, United State, Taiwan is 20 %, 30%, 40%, 80% and 81% respectively. This shows that Indian retail market has to go long way. The Indian retail market is highly unstructured and there are millions of independent stores which operate across the country. Interestingly, India is known as nation of the shops as there are more than 12 million shops in the country. These small shops offer bread and butter to millions of the family.

FDI (Foreign direct investment) changed the market dynamics of Indian retail industry and it completely changed the way retailers were functioning earlier. Government has already allowed 100% FDI in single brand retailing; 51% limit is fixed for multi-brand retailing. The FDI in multi-brand retailing has created unrest and anxiety among small Kirana store as multinational retailers are professionally managed organization and they operate on the basis of economies of scale and superior supply chain management. Moreover multinational retailers are equipped with advance technology, better marketing facilities and they offer better shopping experience to shoppers. Few studies reported that FDI in multi-brand retailing is good keeping in mind long term interest of the country. 

There are many law firms in India which provide consultancy services to the foreign investors. These law firms offer a-to-z legal services required for FDI in India in multi brand retailing. To get swift, easy and economical FDI consultancy services in multi-brand retailing, contact to one of the best law firms of India, Global Jurix at following details:

Global Jurix

S-191 C, 3rd floor, Manak Complex

School Block, Shakarpur

New Delhi - 110092, India,

Website:www(dot)globaljurix(dot)com,

Call at: +91-9810-062-387

Mail at: corporate(at)globaljurix(dot)com