India Hints at More Reforms in the Retail Sector
October 30th, 2011October 29TH, 2011—Mumbai, India—India’s retail sector has been a cause of a lot of debate amongst economists and foreign companies waiting to enter the Indian market. At the moment, India does not allow majority stake for foreign owned businesses in the retail sector. However, statements and comments coming from several policy makers in the country lately has hinted at possibly opening up the retail sector more than what it is right now.
According to IndiaCompanySetup.com (www.indiacompanysetup.com), some of the biggest brands from across the world are waiting for more reforms in the Indian retail sector. India currently possesses one of the largest domestic markets in the world. With a middle class population touching 500 million and increasing purchasing power, the retail sector in India has completely exploded with many companies reporting incredible growth numbers. While the market has started to get quite competitive and there are several challenges for retailers in India, the retail sector is definitely one of the most attractive sectors for foreign companies. Many big brands such as Starbucks and Wal-Mart that had earlier resisted entering India while the current laws were in place have announced strategic tie-ups to create their presence in the country. Starbucks has tied-up with Tata Coffee to open cafes across the country and Wal-Mart announced partnering with the Bharti Group for their retail business in India.
As per IndiaCompanySetup.com, it is inevitable for the retail sector in India to open up more as many policies have already been announced that directly relates to reforms in the retail sector. While things will be implemented gradually to protect the interest of smaller mom and pop retailers in the country, the sheer size of the Indian market means there will be room for several players of varied sizes to co-exist with one another. As the Indian economy continues to grow at over 8 per cent per annum, with an overall population of 1.2 billion people, the retail sector in India is too big to ignore for the topmost brands in the world.
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