India’s decision to allow 51% FDI in multi-brand retail in the country was a huge mood-lifter for foreign retailers. This decision will enable global retail firms such as Walmart, Tesco and Carrefour to start businesses in India with a local partner.
Local retailers are optimistic that the initiative will open a plethora of opportunities and benefit farmers, small manufacturers and the overall retail sector.
As per IMF estimates, the per capita GDP of India is expected to rise to INR58,224 by the end of 2015 with the new change. With India’s growing per capita income and rising middle-class, the retail sector holds great potential for investors. Growing consumerism, changes in consumers’ preferences as well as rising brand consciousness will also help to promote organized retail malls.
Are the multi-brand retailers all set to seek out the opportunities in India’s USD450 billion retail market?
Spire Research and Consulting is the leading research consultancy in global emerging markets. Spire's competitive advantage lies in its ability to deliver actionable intelligence on the external business environment in support of its clients’ strategic decision-making in marketing and business development. Spire's clients include 50 Global Fortune 1000 companies and government agencies in 15 countries. For more information, please visit www.spireresearch.com.