The Cyberabad Times

FDI in retailing

Consumers would be the ultimate beneficiaries of FDI in retailing as big global chains would push the manufacturers to bring down prices. Though the Government is thinking of allowing FDI in food and grocery segment, which contribute 76 percent of the organised retail segment in the country, retailers are asking for opening up the high-value lifestyle segment. This, they think will bring some big apparel brands to India and the existing retailers can avoid direct competition. The Government’s decision can have tremendous impact on the entire retail industry. Industry growth will depend on what extent the FDI will be allowed and how they will be positioned. In the near future it will be the biggest employer. The industry, currently valued at $210 billion, is growing at 5.7 percent per annum. However, organised retailing comprises only 3 percent of this. India’s vast population of youth and growing consumer base in Tier II cities will spearhead the growth of the retail sector. Contribution of Tier II cities to total retailing will grow to 20-25 percent by 2010 .

FDI in retailing

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