Is India Ready For the Retail Revolution?
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Is India Ready For the Retail Revolution?

By SiliconIndia   |   Thursday, 27 September 2012, 11:53 Hrs   |    7 Comments
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Bangalore: With a population of about a billion people and a mushrooming middle class, India holds out bounty promises for the global and homegrown retailing giants. According to McKinsey report, India’s $250 billion retail business is the eighth largest in the world and has the potential to grow by 7 percent. Therefore it is a ‘don’t miss opportunity’ for world’s market dominating company like Wal-Mart.



Several decisions are being taken in order to focus on reforms to enhance business transactions. Modernization of activities like supply chain and retailing is soon to be a reality. Wal-Mart is said to have keenly fought for India’s retail pie on an all time high with the announcement of the first store in Mumbai in collaboration with the Bharti Group. According to Bharti-Walmart, the launch will happen in phases over time. The Bharti Group is likely to invest $2.5 billion by 2015 in the retail sector while entering into a 50/50 joint venture with Wal-Mart for the cash and carry business in view of the FDI restrictions in the retail sector.



Wal-Mart is a symbol of corporate monopoly and of consumerism, so its fortune in India is not just an economic or business issue. It has been shaped into extensively debated politicized issue with bearings on the government’s stand on foreign direct investment (FDI), monopoly in business, labor relations, and so on.



Last year, the country witnessed a wave of protests against the entry of big business houses in retail in general and in the food and grocery trade in particular. After closure orders against individual stores served in Uttar Pradesh, opposition has surfaced with new force.



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Reader's comments(7)
1: This article has been written one of those so-called economists who have been educated in the west, by the west and for the west (when I say west, I mean the corporatised west). Which makes everybody believe that foreign direct investment and corporatisation of life is a cool thing. We Indians are fools to believe this theory of economics. India badly needs political reform and we need to kick out the congress.
Posted by:Rohan - 28 Sep, 2012
2: What revolution are you referring to ? Yet another one that enriches 3% of Indians ?? Pathetic ! Revolution can only come from indigenous solutions. Most people in the U.S and European nations hate large corporations and banks. When most Americans hate WalMart for driving "mom and Pop stores" out of business they are being welcomed with red carpet in India. pathetic !!
Posted by:Patriotic - 27 Sep, 2012
3:
Its very true. The so-called developed societies of the west are dominated and controlled by various capitalists and corporate mafia. The common person is powerless and a dummy. They now realise the trick committed by the corporate mafia and the govt. Together, these two have managed to oppress the commoners.
Rohan Replied to: Patriotic - 28 Sep, 2012
4: In Kolkata, Cash and Carry stores really benefitted farmers who were so far ripped of by middle men. These farmers are financially benefitted immensely and planning to expand. To support India's huge population we need better distrubution system and big retailers can really play a big role in that.
Posted by:Subho - 27 Sep, 2012
5:
Big retailer would loot the farmers and the public alike. Its naive to believe that they would do any good. Walmart is not a charitable organisation to do good. They are a mafia and crooks world over just as all MNCs are.
Rohan Replied to: Subho - 28 Sep, 2012
6: In Kolkata, Cash and Carry stores really benefitted farmers who were so far ripped of by middle men. These farmers are financially benefitted immensely and planning to expand. To support India's huge population we need better distrubution system and big retailers can really play a big role in that.
Posted by:Subho - 27 Sep, 2012
7: The will instantly vipe out a ton of middle class folks, making lively hood by reselling, Good bye Mom and Pop stores
Posted by:renu - 27 Sep, 2012
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