S
shpune12
New Member
The retail sector in India has been plagued with problems at all the areas of its life cycle - back end, technology, supply chain, real estate and human resources. There has been a lack of investment in all of these areas. Consequently, the retail sector has not been able to match the pace of other growing sectors in India. There has been a lack of investment in the logistics of the retail chain, leading to an inefficient market mechanism. Lack of Storage infrastructure has been one of the most alarming of these infrastructure gaps.
This was changed to increases FDI in single-brand retail to 100% while creating a path for FDI in multi-brand retail to the tune of 51%. Cities with populations of more than 10 million are eligible for this. With yesterday's announcement, 51% FDI has been permitted in multi-brand retail - with certain caveats, and also subject to final the approval from respective states to allow implementation within these states.
The new international entrants will be willing to take longer term bets and invest in stores which will be sustainable over the long haul. Competition will increase as Indian retailers shape up and intensify their expansion plans - which had been fairly low over the past few years. Also, it will increase the interest and confidence level of real estate developers to set up quality shopping centres.
They now have reason to set behind them their experiences post 2008 and can once again consider investing in this asset class with a clear vision to long-term profit.
This was changed to increases FDI in single-brand retail to 100% while creating a path for FDI in multi-brand retail to the tune of 51%. Cities with populations of more than 10 million are eligible for this. With yesterday's announcement, 51% FDI has been permitted in multi-brand retail - with certain caveats, and also subject to final the approval from respective states to allow implementation within these states.
The new international entrants will be willing to take longer term bets and invest in stores which will be sustainable over the long haul. Competition will increase as Indian retailers shape up and intensify their expansion plans - which had been fairly low over the past few years. Also, it will increase the interest and confidence level of real estate developers to set up quality shopping centres.
They now have reason to set behind them their experiences post 2008 and can once again consider investing in this asset class with a clear vision to long-term profit.
