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

Irrational? Basis for fear among Hindus about being 'swamped' by Muslims

I was amused while reading an article titled "Ham Paanch, Hamare Pachees", shared on Facebook, by well-known policy analyst Mohan Guruswamy, an alumnus of the John F. Kennedy School of Government, Harvard University, and the Graduate School of Business, Stanford University. Guruswamy, who has also worked as an advisor to the Finance Minister with the rank of Secretary to the Government of India, seeks to probe, as he himself states, "the supposed Muslim attitude to family planning"—a theme that was invoked by Narendra Modi as Gujarat Chief Minister ahead of the December 2002 assembly polls.

Why's Australian crackdown rattling Indian students? Whopping 25% fake visa applications

This is what happened several months ago. A teenager living in the housing society where I reside was sent to Australia to study at a university in Sydney with much fanfare. The parents, whom I often met as part of a group, would tell us how easily the boy got his admission with the help of "some well-meaning friends," adding that they had obtained an education loan to ensure he could study at a graduate school.

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.

Gujarat slips in India Justice Report 2025: From model state to mid-table performer

Overall ranking in IJR reports The latest India Justice Report (IJR), prepared by legal experts with the backing of several civil society organisations and aimed at ranking the capacity of states to deliver justice, has found Gujarat—considered by India's rulers as a model state for others to follow—slipping to the 11th position from fourth in 2022.

Punishing senior citizens? Flipkart, Shopsy stop Cash on Delivery in Ahmedabad!

The other day, someone close to me attempted to order some goodies on Flipkart and its subsidiary Shopsy. After preparing a long list of items, this person, as usual, opted for the Cash on Delivery (popularly known as COD) option, as this senior citizen isn't very familiar with online prepaid payment methods like UPI, credit or debit cards, or online bank transfers through websites. In fact, she is hesitant to make online payments, fearing, "I may make a mistake," she explained, adding, "I read a lot about online frauds, so I always choose COD as it's safe. I have no knowledge of how to prepay online."

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.

Of lingering shadow of Haren Pandya's murder during Modi's Gujarat days

Sunita Williams’ return to Earth has, ironically, reopened an old wound: the mysterious murder of her first cousin, the popular BJP leader Haren Pandya, in 2003. Initially a supporter of Narendra Modi, Haren turned against him, not sparing any opportunity to do things that would embarrass Modi. Social media and some online news portals, including The Wire , are abuzz with how Modi’s recent invitation to Sunita to visit India comes against the backdrop of how he, as Gujarat’s chief minister, didn’t care to offer any official protocol support during her 2007 visit to Gujarat.

Area set aside in Ahmedabad for PM's affordable housing scheme 'has gone to big builders'

Following my article on affordable housing in Counterview, which quoted a top real estate consultant, I was informed that affordable housing—a scheme introduced by Prime Minister Narendra Modi—has deviated from its original intent. A former senior bureaucrat, whom I used to meet during my Sachivalaya days, told me that an entire area in Ahmedabad, designated for the scheme, has been used to construct costly houses instead.

Just 5% Gujarat Dalit households 'recognise' social reformers who inspired Ambedkar

An interesting survey conducted across 22 districts and 32 villages in Gujarat sheds light on the representation of key social reformers in Dalit households. It suggests that while Dr. B.R. Ambedkar's photo was displayed in a majority of homes, images of Lord Buddha and the 19th-century reformist couple, Savitribai Phule and Jyotiba Phule, were not as commonly represented.

Search This Blog