Pro-MNC consultant praises Modi for opening up India's $1 trillion retail market for global investors

Top international consultant, Chicago-based AT Kearney, known to take care of the interests of multinational corporations around the globe, has praised Prime Minister Narendra Modi's governance for ensuring what it calls “foreign retailers’ increased optimism in the $1 trillion retail market and its vast potential” in India.
Ranking India No 2, next only to China, in the Global Retail Development Index (GRDI), the top consultant, in their latest report, “Global Retail Expansion at a Crossroads ”, has said that the retail demand in India has particularly gone up because the Modi government has “relaxed” several key foreign direct investment (FDI) regulations in “single-brand retail.”
The report's GRDI score is 71, less than two points behind China's – 72.5 – on a scale of 100, and the countries which are immediately behind India are Malaysia, scoring 59.6, followed by Kazakhstan 56.5, Indonesia 55.6, and Turkey 54.3.
Interestingly, India ranks so high despite its relatively low market size of 53 per cent, as against cent per cent of China, 81.3 per cent of Malaysia, 56.2 per cent of Kazakhstan, 64.2 per cent of Indonesia and 85.9 per cent of Turkey. The report only ranks developing countries, leaving out developed nations.
In Inda, the report says, “companies that deal with 'cutting-edge technology' are no longer forced to source at least 30 percent locally, a move that will likely encourage companies like Apple and Xiaomi to open branded stores in the near future.”
The ruling BJP has “retained a rule that allows 51 percent FDI in multi-brand retail, and has opened up FDI in multi-brand processed food retail, as long as the food is sourced and produced in India”, the report stays, adding, “This could benefit retailers like Walmart (currently limited to cash-and-carry) and Tesco (currently operating multi-brand retail through a joint venture with Tata).”
“In terms of formats, the cash-and-carry model is thriving and profitable, with existing players like Walmart and Metro seeking to expand their store bases, targeting 70 and 50 stores, respectively, by 2020”, the report says.
Thanks to FDI relaxation, the report says, in the past year, several foreign retailers have entered India – such as in fashion, Aéropostale, The Gap and The Children’s Place in partnership with Arvind Lifestyle Brands, Topshop and Topman entering via e-commerce through Jabong.com, and H&M “becoming the first international fashion retailer to enter alone after the government approved 100 percent FDI in single-brand retail.”
“Other sectors also saw multiple entrants including sports (Sonae, under the Sport Zone banner), restaurants (Wendy’s, Jamie’s Italian, Jamie’s Pizzeria, Barcelos, and Carl’s Jr), and convenience stores (UAE-based Fmart)”, the report notes, adding, “And among existing international retailers, Marks & Spencer, Burger King, Dunkin’ Donuts, Starbucks, and Nando’s undertook significant expansion programmes. ”
“In addition”, the report says, “In e-commerce, the government now permits 100 percent FDI for online marketplaces... E-commerce is accelerating as Internet and smartphone penetration increases – toward the end of 2015 India surpassed the US to become the world’s second-largest Internet market, trailing only China.”
“Consumers are growing more comfortable shopping online, and venture capital and private equity firms are making investments”, the report notes, adding, “Attracted by the growth prospects, Alibaba plans to enter in 2016 either organically or through acquisitions.”

Comments

When Pakistanis whispered: ‘end military rule’ — A Moscow memoir

During the recent anti-terror operation inside Pakistan by the Government of India, called Operation Sindoor — a name some feminists consider patently patriarchal, even though it’s officially described as a tribute to the wives of the 26 husbands killed in the terrorist strike — I was reminded of my Moscow stint, which lasted for seven long years, from 1986 to 1993.

Ahmedabad's civic chaos: Drainage woes, waterlogging, and the illusion of Olympic dreams

In response to my blog on overflowing gutter lines at several spots in Ahmedabad's Vejalpur, a heavily populated area, a close acquaintance informed me that it's not just the middle-class housing societies that are affected by the nuisance. Preeti Das, who lives in a posh locality in what is fashionably called the SoBo area, tells me, "Things are worse in our society, Applewood."

Tracking a lost link: Soviet-era legacy of Gujarati translator Atul Sawani

The other day, I received a message from a well-known activist, Raju Dipti, who runs an NGO called Jeevan Teerth in Koba village, near Gujarat’s capital, Gandhinagar. He was seeking the contact information of Atul Sawani, a translator of Russian books—mainly political and economic—into Gujarati for Progress Publishers during the Soviet era. He wanted to collect and hand over scanned soft copies, or if possible, hard copies, of Soviet books translated into Gujarati to Arvind Gupta, who currently lives in Pune and is undertaking the herculean task of collecting and making public soft copies of Soviet books that are no longer available in the market, both in English and Indian languages.

RP Gupta a scapegoat to help Govt of India manage fallout of Adani case in US court?

RP Gupta, a retired 1987-batch IAS officer from the Gujarat cadre, has found himself at the center of a growing controversy. During my tenure as the Times of India correspondent in Gandhinagar (1997–2012), I often interacted with him. He struck me as a straightforward officer, though I never quite understood why he was never appointed to what are supposed to be top-tier departments like industries, energy and petrochemicals, finance, or revenue.

Environmental report raises alarm: Sabarmati one of four rivers with nonylphenol contamination

A new report by Toxics Link , an Indian environmental research and advocacy organisation based in New Delhi, in collaboration with the Environmental Defense Fund , a global non-profit headquartered in New York, has raised the alarm that Sabarmati is one of five rivers across India found to contain unacceptable levels of nonylphenol (NP), a chemical linked to "exposure to carcinogenic outcomes, including prostate cancer in men and breast cancer in women."

PharmEasy: The only online medical store which revises prices upwards after confirming the order

For senior citizens — especially those without a family support system — ordering medicines online can be a great relief. Shruti and I have been doing this for the last couple of years, and with considerable success. We upload a prescription, receive a verification call from a doctor, and within two or three days, the medicines are delivered to our doorstep.

A conman, a demolition man: How 'prominent' scribes are defending Pritish Nandy

How to defend Pritish Nandy? That’s the big question some of his so-called fans seem to ponder, especially amidst sharp criticism of his alleged insensitivity during his journalistic career. One such incident involved the theft and publication of the birth certificate of Masaba Gupta, daughter of actor Neena Gupta, in the Illustrated Weekly of India, which Nandy was editing at the time. He reportedly did this to uncover the identity of Masaba’s father.

Revisiting Gijubhai: Pioneer of child-centric education and the caste debate

It was Krishna Kumar, the well-known educationist, who I believe first introduced me to the name — Gijubhai Badheka (1885–1939). Hailing from Bhavnagar, known as the cultural capital of the Saurashtra region of Gujarat, Gijubhai, Kumar told me during my student days, made significant contributions to the field of pedagogy — something that hasn't received much attention from India's education mandarins. At that time, Kumar was my tutorial teacher at Kirorimal College, Delhi University.

A sector under siege? War and real estate: Navigating uncertainty in India's expanding market

I was a little surprised when I received an email alert from a top real estate consultant, Anarock Group , titled "Exploring War’s Effects on Indian Real Estate—When Conflict Meets Concrete," authored by its regional director and head of research, Dr. Prashant Thakur. I had thought that the business would wholeheartedly support what is considered a strong response to the dastardly terrorist attack in Pahalgam, Operation Sindoor.

Search This Blog