Rising foreign direct investment (FDI) and the entry of multinational retailers in India is expected to raise the share of organised retail, thereby contributing to consumption-led growth of the economy, according to a recent report titled ‘Retail FDI in India’ by Deloitte India, which said India is now an attractive investment destination for retail.
About 70 per cent of grocery stores in big cities and 37 per cent of such stores in tier II cities want to enable themselves with new technology, a press release from the company said citing the report.Rising foreign direct investment (FDI) and the entry of multinational retailers in India is expected to raise the share of organised retail, thereby contributing to consumption-led growth of the economy, according to a recent report titled 'Retail FDI in India' by Deloitte India, which said India is now an attractive investment destination for retail.#
The report underlines the need for policy to address the trends of convergence of modern retail and traditional retail and deeper penetration of organised retail in non-urban areas, both of which make India a unique market for multinational enterprises.
In turn, global brands fetch capital investment, technology strength, and infrastructure benefits for local markets; thus, bringing in new sustainable retail models for an emerging economy like India, said the report.
A Deloitte India spokesperson said, “Over time, with the help of regulatory assistance and on the back of a sound policy environment, India has moved up from rank 130 to 63 in World Bank’s Ease of Doing Business Report. The country has emerged to be the only one to have improved its ranking by more than 10 points consecutively for three years. This trend has helped enhance investor confidence and propelled greater inflow of FDI in India for retail.”
The study reveals various reasons for the increased inflow of retail FDI in India, including the new direct tax regime, local sourcing norms, timely and effective implementation of goods and services tax and change in FDI requirements for the retail sector.
In addition to this, it paints a positive future for India’s e-commerce market, which is expected to grow at a compound annual growth rate (CAGR) of 30 per cent due to growing Internet penetration and increasing smart phone usage along with the rising number of online shoppers in India.
ALCHEMPro News Desk (DS)
marketing@alchempro.com
