Indian Retail Sector and the Impact of FDI

8/13/2019 Indian Retail Sector and the Impact of FDI

1/88

________________________________________________________________- 1 -


2/88

PROJECTREPORTON

Indian Retail Sector and the Impact of FDI

SUBMITTED BY

S!CI MODY

T"Y"B"M"S" #Seme$ter %&

MITIB!ICO''E(E

%I'EP!R'E)*EST+

SUBMITTEDTO

UNI%ERSITY OF MUMB!I

!C!DEMIC YE!R

,--. / ,--0

N!ME OF PROJECT CO/ORDIN!TOR

PROF. S. CHATTERJEE

D!TE OF SUBMISSION

1thSeptem2er3 ,--.

________________________________________________________________- 2 -


3/88

DEC'!R!TION

I, Ms. Shachi Mody, of Mithi2ai Colle4eof TYBMS S!"!s#!$ %& h!$!'y d!c(a$!

#ha# I ha)! co"*(!#!d "y *$o+!c#, #i#(!d 5Indian Retail Sector and the Impact of

FDI6 i #h! Acad!"ic Y!a$ 2-2/. Th! ifo$"a#io s0'"i##!d h!$!i is #$0!

ad o$iia( #o #h! '!s# of "y o3(!d!.

________________________

Sia#0$! of S#0d!#

Shachi Mody&

CERTIFIC!TE

I, Prof" S" C!TTERJEE, h!$!'y c!$#ify #ha# M$" Shachi Mod7 of Mi#hi'ai

Co((!! of TYBMS S!"!s#!$ %& has co"*(!#!d h!$ *$o+!c#, #i#(!d 5Indian Retail

Sector and the Impact of FDI6i #h! acad!"ic y!a$ 2-2/. Th! ifo$"a#io

s0'"i##!d h!$!i is #$0! ad o$iia( #o #h! '!s# of "y o3(!d!.

_________________________ __________________________

Sia#0$! Of Th! P$ici*a( Sia#0$! Of Th! P$o+!c# Co-o$dia#o$

4$. 5i$a %. Maaoa$& P$of. S. Cha##!$+!!&

________________________________________________________________- 6 -


4/88

!C8NO*'ED(EMENTS

This *$o+!c# is a $!s0(# of !ffo$#s o# o(y 'y o! *!$so '0# 'y a f!3 "o$!

*!o*(! 3ho ha)! "ad! #h! *$oc!ss !asi!$ #h$o0h #h!i$ s0**o$# ad h!(*. This*$o+!c# 3o0(d ha)! '!! ico"*(!#! 3i#ho0# #h!i$ co#$i'0#io ad #h!$!fo$! I

#a! #his o**o$#0i#y #o #ha #h!".

I 3o0(d (i! #o #ha o0$ co 7 o$dia#o$ P$of. M$s. 8!!(a 8ai$ 3ho a)! 0s

#h! o**o$#0i#y #o *$!*a$! #his *$o+!c#.

I 3o0(d a(so (i! #o #ha "y *$o+!c# 0id! P$of. M$s. Soa(i Cha##!$+!!

3ho *$o)id!d co#i0o0s 0idac! fo$ #h! *$o+!c#.

I 3o0(d (i! #o #ha #h! co((!! (i'$a$y 3hich *$o)id!d $!a# h!(* 'y

(!di 0s!f0( 'oos #h$o0ho0# #h! *$oc!ss.

I 3o0(d (i! #o #ha "y fa"i(y ad f$i!ds i !co0$ai ad *$o)idi

cos#a# s0**o$# #o "a! #his *$o+!c#.

________________________________________________________________- 9 -


5/88

OBJECTI%E 9 RESE!RC METODO'O(Y

Th! "ai o'+!c#i)! of *$!*a$i #his *$o+!c# $!*o$# is #o 0d!$s#ad #h!

d!)!(o*"!#s #ai *(ac! i #h! Idia R!#ai( S!c#o$ ad #h! o**o$#0i#i!s #ha# i#

3i(( *$o)id! #o #h! cos0"!$s. Th$o0h #his aa(ysis i# 3i(( '! *ossi'(! #o *$o+!c#

#h! *$o$!ss ad d!)!(o*"!# of #h! Idia !coo"y. This s!c#o$ has '!!

chos! as i# is !:*!c#!d #o *$o)id! !"*(oy"!# o**o$#0i#i!s #o a )as# 0"'!$

ad a# #h! sa"! #i"! $!f(!c# a *osi#i)! ad co"*!#i#i)! !coo"ic $o3#h.

Ho*!f0((y, #h! $!ad!$ !#s a #$0! isih# of #h! s!c#o$ ad #h! *$o'(!"s

*!$#aii #o i#.

Th! $!s!a$ch "!#hodo(oy i)o()!s aa(ysis f$o" )a$io0s $!*o$#s o #h!

Idia R!#ai( S!c#o$ 'y )a$io0s $!s!a$ch co"*ai!s (i! AT 5!a$!y, I"a!s

R!#ai(, R!#ai('i;, !#c. Th! ifo$"a#io has '!! c(assifi!d f$o" #h!s! $!*o$#s ad

*os#!d #h!$!i. Th! $!s!a$ch is a(so 'as!d o so"! 'oos o #h! Idia $!#ai(

s!c#o$. Th! ifo$"a#io $!a$di #h! fo$!i i)!s#"!# *o(ici!s ad *$oc!d0$!s

has '!! so0$c!d f$o" #h! officia( 3!'si#! of P(ai Co""issio of


6/88

E:ECUTI%E SUMM!RY

This *$o+!c# #i#(!d >Idia R!#ai( s!c#o$ ad I"*ac# of F4I? !(ih#!s o #h!

R!#ai( sc!a$io of Idia.This $!*o$# i)!s a '$i!f i#$od0c#io of #h! $!#ai(i a(o 3i#h i#s

i"*o$#ac!. A o)!$)i!3 of #h! s!c#o$ is i)! 3i#h i#s c(assifica#io i#o #h!

$!#ai(i fo$"a#s *$!)a(!# i Idia. This *$o+!c# a(so d!#ai(s o0# #h! fac#o$ ca0si

#h! (o3 *$od0c#i)i#y of #h! $!#ai( s!c#o$ '!sid!s o#h!$ i"*!di"!#s #o #his s!c#o$.

I# a(so i)!s a isih# a'o0# #h! $o(! of F4I i Idia R!#ai( S!c#o$

ad i#s i"*ac# o i#.

Th! #!cho(oy 0s!d i $!#ai(i has a(so '!! hih(ih#!d co"'i!d 3i#h

#h! o)!$)i!3 of #h! c0$$!# sc!a$io of #h! Idia R!#ai( s!c#o$. This has '!!

s0**o$#!d 'y s0$)!ys ad a$#ic(!s. This *$o+!c# a(so (ays do3 #h! f0#0$! $o3#h

of #his s!c#o$ ad i#s cos!@0!c!s.

To coc(0d! i#, so"! $!co""!da#ios ad s0!s#ios $!a$di

cha!s i *o(icy ad o#h!$ "!as0$!s ha)! '!! !:*(ici#(y (aid do3.

I si"*(! 3o$ds, #his *$o+!c# i)!s a #ho$o0h isih# of #h! c0$$!#

$!#ai( sc!a$io ad i#s $o3#h *o#!#ia(.

________________________________________________________________

- -


7/88

T!B'E OF CONTENTS

S$. 8o. Co#!#s Pa! 8o.Section I; Indian Retail Sector

1. Introd


8/88

. A$#ic(!s o R!c!# 4!)!(o*"!#s i Idia R!#ai( S!c#o$ 21. Recommendation$ for Indian Retail $ector1.1 Po(icy R!co""!da#ios =1.2 O#h!$ M!as0$!s D

11. Concl


9/88

"a0fac#0$!$so$ i"*o$#!$s,!i#h!$ di$!c#(y o$ #h$o0h a 3ho(!sa(!$, ad #h! s!((s

idi)id0a( i#!"s o$ s"a(( @0a#i#i!s #o #h! !!$a( *0'(ic o$ !d 0s!$ c0s#o"!$s,

0s0a((y i a sho*, a(so ca((!d s#o$!. R!#ai(!$s a$! a# #h! !d of #h! s0**(y chai.

Ma$!#!$ss!! $!#ai(i as *a$# of #h!i$ o)!$a(( dis#$i'0#ios#$a#!y.

Th!$! a$! )a$io0s d!fii#ios #o $!#ai(i. So"! of #h!" a$!K

Cosis#s of #hos! '0si!ss ac#i)i#i!s i)o()!d i #h! sa(! of oods ad

s!$)ic!s #o cos0"!$s fo$ #h!i$ *!$soa(, fa"i(y, o$ ho0s!ho(d 0s!.

A(( #$asac#ios i 3hich #h! '0y!$ i#!ds #o cos0"! #h! *$od0c#

#h$o0h *!$soa(, fa"i(y o$ ho0s!ho(d 0s!.

A(( ac#i)i#i!s di$!c#(y $!(a#!d #o #h! sa(! of oods ad s!$)ic!s #o #h!

0(#i"a#! cos0"!$ fo$ *!$soa(, o-'0si!ss 0s!.

Th! ac#i)i#i!s i)o()!d i s!((i co""odi#i!s di$!c#(y #o cos0"!$s.

I o#h!$ 3o$ds, $!#ai(i is #h! fia( s#!* i #h! dis#$i'0#io of "!$chadis! -

#h! (as# (i i #h! S0**(y Chai - co!c#io #h! '0( *$od0c!$s of co""odi#i!s

________________________________________________________________- -
http://en.wikipedia.org/wiki/Manufacturerhttp://en.wikipedia.org/wiki/Importerhttp://en.wikipedia.org/wiki/Wholesalerhttp://en.wikipedia.org/wiki/Customerhttp://en.wikipedia.org/wiki/Supply_chainhttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Distribution_(business)http://en.wikipedia.org/wiki/Manufacturerhttp://en.wikipedia.org/wiki/Importerhttp://en.wikipedia.org/wiki/Wholesalerhttp://en.wikipedia.org/wiki/Customerhttp://en.wikipedia.org/wiki/Supply_chainhttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Distribution_(business)


10/88

#o #h! fia( cos0"!$s. R!#ai(i co)!$s di)!$s! *$od0c#s s0ch as food,

a**a$!(s, cos0"!$ oods, fiacia( s!$)ic!s ad (!is0$!.

1.2ho is a $!#ai(!$

Th! $!#ai(!$ is #h! o! 3ho ac#s as #h! fia( s#oc *oi# 3ho "a!s

*$od0c#s o$ s!$)ic!s a)ai(a'(! #o #h! cos0"!$ 3h!!)!$ $!@0i$!d. H!c!, #h!

)a(0! *$o*osi#io a $!#ai(!$ off!$s #o a cos0"!$ is !asy a)ai(a'i(i#i!s of #h!

d!si$!d *$od0c# i #h! d!si$!d si;!s a# #h! d!si$!d #i"!s.

Acco$di #o 5o#(!$, a $!#ai(!$ is ay '0si!ss !#!$*$is! 3hos! sa(!s

)o(0"! co"!s *$i"a$i(y f$o" $!#ai(i.

Th! fo((o3i dia$a" sho3s 3h!$! #h! $!#ai(!$ s#ads i #h! s0**(y chai.

Man


11/88

o$ai;a#ios. Th! fo((o3i (is# sho3s #h! )a$io0s ids of $!#ai(!$s o$ $!#ai(

s#o$!s !:is#i i #h! "a$!#K

Specialt7 Store; I# has a a$$o3 *$od0c# (i!. E..K Th! Body Sho*, Th!

Li"i#!d, !#c.

Department Store;I# has s!)!$a( *$od0c# (i!s. E..K B(oo"ida(!?s, !#c.

Sroom; B$oad s!(!c#io of hih "a$ 7 0*, fas# "o)i,

'$ad 7 a"! oods so(d 'y ca#a(o a# disco0#. C0s#o"!$s *ic 0* #h!

"!$chadis! a# #h! s#o$!. EK Ed! Si ad Bi!.

1.6.1 Th! $!#ai(!$s ca '! ca#!o$i;!d d!*!di 0*o #h! (!)!( of s!$)ic!

off!$!d 'y #h!". Th! fo((o3i a$! #h! !!$a( fo0$ (!)!(s of s!$)ic! fo$ $!#ai(!$sK

Self / Ser=ice;S!(f 7 S!$)ic! is #h! co$!$s#o! of a(( disco0# o*!$a#ios.

May c0s#o"!$s a$! 3i((i #o ca$$y o0# #h!i$ o3 (oca#! 7 co"*a$! 7

s!(!c# *$oc!ss #o sa)! "o!y.

________________________________________________________________- 11 -


12/88

Self Selection;C0s#o"!$s fid #h!i$ o3 oods, a(#ho0h #h!y ca as

fo$ assis#ac!.

'imited $er=ice; Th!s! $!#ai(!$s ca$$y "o$! sho**i oods, ad

c0s#o"!$s !!d "o$! ifo$"a#io ad assis#ac!. Th! s#o$!s a(so off!$

s!$)ic!s s0ch as c$!di# ad "!$chadis! 7 $!#0$ *$i)i(!!s.

F


13/88

1.= F0#0$! of R!#ai(iK

Ad)ac!s i #!cho(oy, (i! #h! I#!$!#, ha)! h!(*!d "a! $!#ai(i a

!)! "o$! cha((!i ad !:ci#i fi!(d i $!c!# y!a$s. Th! a#0$! of #h!

'0si!ss ad #h! 3ay $!#ai(i is do! a$! c0$$!#(y 0d!$oi f0da"!#a(

cha!s. Ho3!)!$, $!#ai(i i so"! fo$" 3i(( a(3ays '! !c!ssa$y. Fo$

!:a"*(!, !)! #ho0h #h! I#!$!# is '!ii #o "a! i# *ossi'(! fo$

"a0fac#0$!$s #o s!(( di$!c#(y #o cos0"!$s, #h! )!$y )as#!ss of cy'!$s*ac! 3i((

s#i(( "a! i# )!$y diffic0(# fo$ a cos0"!$ #o *0$chas! !)!$y *$od0c# h! o$ sh!

0s!s di$!c#(y. O-(i! $!#ai(!$s, (i! A"a;o.co", '$i #o!#h!$ asso$#"!#s of

*$od0c#s fo$ cos0"!$s #o '0y i #h! sa"! 3ay #ha# '$ics-ad-"o$#a$ $!#ai(!$s

do. I addi#io, #$adi#ioa( $!#ai(!$s 3i#h *hysica( s#o$!s 3i(( co#i0! #o '!!c!ssa$y. R!#ai(!$s 3ho off!$ *!$soa( s!$)ic!s, (i! hai$ s#y(i, 3i(( !!d #o

ha)! fac!-#o-fac! i#!$ac#io 3i#h #h! cos0"!$. B0# !)! 3i#h *$od0c#s,

cos0"!$s of#! 3a# #o s!!, #o0ch ad #$y #h!" '!fo$! #h!y '0y. O$, #h!y "ay

3a# *$od0c#s i""!dia#!(y ad 3oN# 3a# #o 3ai# fo$ #h!" #o '! shi**!d. A(so,

ad *!$ha*s "os# i"*o$#a#(y, i "ay cas!s #h! !:*!$i!c! of )isi#i #h!

$!#ai(!$ is a i"*o$#a# *a$# of #h! *0$chas!. E)!$y#hi #ha# #h! $!#ai(!$ ca do #o

"a! #h! sho**i !:*!$i!c! *(!as0$a'(! ad f0 ca h!(* !s0$! #ha#

c0s#o"!$s co"! 'ac.

________________________________________________________________- 16 -


14/88

," O%ER%IE* OF TE INDI!N RET!I' SECTOR

2.1 A o)!$)i!3K

R!#ai( is a !:#$!"!(y i"*o$#a# s!c#o$ i #h! !coo"y, '0# has '!!

o)!$(oo!d 'y Idia?s *o(icy 7 "a!$s. This s!c#o$, 3i#h $!fo$"s, is ca*a'(! of

c$!a#i D "i((io +o's i #h! !:# 1 y!a$s ad *$o)idi +o' o**o$#0i#i!s fo$

*!o*(! #$asi#ioi f$o" a$ic0(#0$!. F0$#h!$, as #h! s!c#o$ d!)!(o*s, *$ic!s of

oods 3i(( fa(( #h!$!'y $aisi #h! s#ada$d of (i)i of *!o*(! ac$oss #h!

!coo"y.

Th! $!#ai( "a$!# si;! i Idia is !s#i"a#!d #o '! a$o0d 1D 'i((io.R!#ai(i *$o)id!s +o's #o a("os# 1= *!$c!# of !"*(oya'(! Idia ad0(#s, ad i#

*!$ha*s #h! (a$!s# co#$i'0#o$ #o IdiaNs


15/88

a# a hih!$ *ac! of !a$(y 1. Ac$oss #h! co0#$y, $!#ai( sa(!s i $!a( #!$"s a$!

*$!dic#!d #o $is! "o$! $a*id(y #ha cos0"!$ !:*!di#0$! d0$i 26-D. Th!

fo$!cas# $o3#h i $!a( $!#ai( sa(!s d0$i 26- 2D is D.6 *!$ y!a$, co"*a$!d

3i#h /.1 fo$ cos0"!$ !:*!di#0$!. Mod!$i;a#io of #h! Idia $!#ai( s!c#o$ 3i((

'! $!f(!c#!d i $a*id $o3#h i sa(!s of s0*!$"a$!#s, d!*a$#"!#a( s#o$!s ad

hy*!$"a$!#s.

Sa(!s f$o" #h!s! (a$! - fo$"a# s#o$!s a$! #o !:*ad a# $o3#h $a#!s

$ai f$o" 29 #o 9 *!$ y!a$ d0$i 26-2D, acco$di #o a (a#!s# $!*o$#

'y E0$o"oi#o$ I#!$a#ioa(, a (!adi *$o)id!$ of (o'a( cos0"!$-"a$!#

i#!((i!c!. Th! co0#$y has #h! hih!s# *!$ ca*i#a o0#(!#s i #h! 3o$(d - =.=

o0#(!#s *!$ 1 *o*0(a#io. A$o0d / of #h! *o*0(a#io i Idia is !a!d i

$!#ai(i, as co"*a$!d #o 2 i #h! SA.

I a d!)!(o*i co0#$y (i! Idia, a (a$! ch0 of cos0"!$ !:*!di#0$!

is o 'asic !c!ssi#i!s, !s*!cia((y food-$!(a#!d i#!"s. H!c!, i# is o# s0$*$isi

#ha# food, '!)!$a!s ad #o'acco acco0#!d fo$ as "0ch as /1 of $!#ai( sa(!s

i 22. Th! sha$! of food $!(a#!d i#!"s had, ho3!)!$, d!c(i!d o)!$ #h! $!)i!3

*!$iod, do3 f$o" /6 i 1. This is o# 0!:*!c#!d, '!ca0s! 3i#h ico"!

$o3#h, Idias, (i! cos0"!$s !(s!3h!$!, ha)! s#a$#!d s*!di "o$! o o-

food i#!"s co"*a$!d 3i#h food *$od0c#s. Sa(!s #h$o0h s0*!$"a$!#s ad

d!*a$#"!# s#o$!s a$! s"a(( co"*a$!d 3i#h o)!$a(( $!#ai( sa(!s.

8!)!$#h!(!ss, #h!i$ sa(!s ha)! $o3 "0ch "o$! $a*id(y, a# a("os# a #$i*(!

$a#! a'o0# 6 *!$ y!a$ d0$i #h! $!)i!3 *!$iod. This hih acc!(!$a#io i

sa(!s #h$o0h "od!$ $!#ai( fo$"a#s is !:*!c#!d #o co#i0! d0$i #h! !:# f!3

y!a$s, 3i#h #h! $a*id $o3#h i 0"'!$s of s0ch o0#(!#s d0! #o cos0"!$ d!"ad

ad '0si!ss *o#!#ia(.

IdiaNs )as# "idd(! c(ass ad i#s a("os# 0#a**!d $!#ai( id0s#$y a$!

!y a##$ac#ios fo$ (o'a( $!#ai( ia#s 3a#i #o !#!$ !3!$ "a$!#s. Th!


16/88

disdai ad sho**i 'as!#s a$! !##i 'i!$ a(( #h! #i"!. H!$! a$! so"!

fac#o$s #ha# idica#! #h! *o#!#ia( of $!#ai( i IdiaK

________________________________________________________________- 1 -


17/88

A# 2/1 "i((io, o! of #h! (a$!s# cos0"i 'as! i #h! Q 3o$(d,

fo$"i 2/ of #h! #o#a( *o*0(a#io.

A hih s*!di co""0i#y '!(o3 9= y!a$s co"*$is!s D1 of #h!

*o*0(a#io.

A yo0 *o*0(a#io 3i#h =9 *o*0(a#io '!(o3 2= y!a$s.

Ic$!as!d (i#!$acy f$o" 99 i 1= #o / i 26.

Ic$!as! i 3o$i3o"! f$o" 1.6 "i((io i 11 #o 9.D "i((io i 1D.

Ic$!as! i "!dia *!!#$a#io #o 6D "i((io ca'(! ho0s!ho(d ad D

"i((io T% ho0s!ho(d i 21.

Risi ico"!s ad i"*$o)!"!#s i if$as#$0c#0$! a$! !(a$i

cos0"!$ "a$!#s ad acc!(!$a#i #h! co)!$!c! of cos0"!$ #as#!s.

Looi a# ico"! c(assifica#io, #h! 8a#ioa( Co0ci( of A**(i!d Ecoo"ic

R!s!a$ch 8CAER c(assifi!d a**$o:i"a#!(y = of #h! Idia *o*0(a#io

as (o3 ico"! i 19 - = #his is !:*!c#!d #o d!c(i! #o 1/.D 'y 2-

/.

Li'!$a(i;a#io of #h! Idia !coo"y 3hich has (!d #o #h! o*!i 0* of

#h! "a$!# fo$ cos0"!$ oods has h!(*!d #h! M8C '$ads (i! 5!((os,

i(!)!$, 8!s#(!, !#c. #o "a! siifica# i$oads i#o #h! )as# cos0"!$

"a$!# 'y off!$i a 3id! $a! of choic!s #o #h! Idia cos0"!$s.

Shif# i cos0"!$ d!"ad #o fo$!i '$ads (i! Mc4oa(ds, Soy,Paasoic, !#c.

Th! i#!$!# $!)o(0#io is "ai #h! Idia cos0"!$ "o$! acc!ssi'(! #o

#h! $o3i if(0!c!s of do"!s#ic ad fo$!i $!#ai( chais. R!ach of

sa#!((i#! T.%. cha!(s is h!(*i i c$!a#i a3a$!!ss a'o0# (o'a(

________________________________________________________________- 1/ -


18/88

*$od0c#s fo$ (oca( "a$!#s. A'o0# 9/ of Idia?s *o*0(a#io is 0d!$ #h!

a! of 2 ad #his 3i(( ic$!as! #o == 'y 21=. This yo0 *o*0(a#io,

3hich is #!cho(oy-sa))y, 3a#ch "o$! #ha = T% sa#!((i#! cha!(s, ad

dis*(ay #h! hih!s# *$o*!si#y #o s*!d, 3i(( i""!s!(y co#$i'0#! #o #h!

$o3#h of #h! $!#ai( s!c#o$ i #h! co0#$y. As Idia co#i0!s #o !# s#$o(y

________________________________________________________________- 1D -


19/88


20/88

80"!$o0s c(o#hi ad foo#3!a$ sho*s i sho**i c!#!$s ad "a$!#s

o*!$a#! a(( o)!$ Idia. T$adi#ioa( o0#(!#s s#oc a (i"i#!d $a! of ch!a* ad

*o*0(a$ i#!"s i co#$as#, "od!$ c(o#hi ad foo#3!a$ s#o$!s ha)! "od!$

*$od0c#s ad a##$ac#i)! dis*(ays #o (0$! c0s#o"!$s. Ho3!)!$, 3i#h $a*id

0$'ai;a#io, ad chai *a##!$s of cos0"!$ #as#!s ad *$!f!$!c!s, i# is

0(i!(y #ha# #h! #$adi#ioa( o0#(!#s 3i(( s0$)i)! #h! #!s# of #i"!.

d+ ome F


21/88

2.2.1 Th! $o3#h of Food 8o-Food $!#ai(!$s i IdiaK

2.6 F!a#0$!s of #h! Idia R!#ai( S!c#o$K

@+ Unor4anied;

Th!$! a$! !a$(y #3!()! "i((io $!#ai( o0#(!#s i Idia ad #h! 0"'!$ is

$o3i. T3o #hi$ds of #h!s! s#o$!s a$! i $0$a( (oca#io. Th! )as# "a+o$i#y of #h!

#3!()! "i((io s#o$!s a$! s"a(( Gfa#h!$ ad soG o0#(!#s. Acco$di #o #h! R!#ai(i

i Idia $!*o$# *0'(ish!d 'y #h! P3C


22/88

2.9 E)o(0#io of #h! Idia R!#ai( S!c#o$K

F$o" #h! a'o)! dia$a""a#ic $!*$!s!#a#io of #h! !)o(0#io of #h! Idia

$!#ai( s!c#o$ i# is !)id!# ho3 !ach $!#ai( fo$"a# has !)o()!d ad ai!d

i"*o$#ac! i i#s o3 3ay. Th! a$$o3s a'o)! sho3 ho3 #h! $!#ai( fo$"a# !)o()!d

i.!. #h$o0h o)!$"!# aid o$ +0s# 'y #h! !!d of i#. Th! a$$o3 '!(o3 #h! 'o:!s

$!*$!s!#s #h! 0#i(i#y ad f!a#0$!s of #h! $!#ai( fo$"a#s. Th! 'o:!s $!*$!s!# #h!

)a$io0s $!#ai( fo$"a#s #ha# ha)! !)o()!d.

________________________________________________________________- 22 -

Weekly MarketsVillage FairsMelas

Convenience Stores

Mom andPop/Kiranas

PDS OutletsKhadi StoresCooperatives

!clusive "randOutlets#yper/Super MarketsDepartment StoresShoppingMalls

T$adi#ioa(P!$)asi)! R!ach


23/88

" STRUCTURE OF TE INDI!N RET!I' SECTOR

Idia, 3i#h c(os! #o 12 "i((io o0#(!#s, has #h! hih!s# $!#ai( o0#(!# d!si#y i

#h! 3o$(d. This $!#ai( s!c#o$ is di)id!d i#o #3o fo$"a#sK

6.1 Traditional Format$;

This fo$"a# is *$!)a(!# i #h! $0$a( *a$#s of #h! co0#$y. Th!y "ai(y

ic(0d! #h! 0o$ai;!d fo$"s of $!#ai(i, '!ca0s! of 3hich #h!y ha)! (o3

*$od0c#i)i#y. Th!s! fo$"a#s ha)! !"!$!d (a$!(y d0! #o #h! a's!c! of

a(#!$a#i)! !"*(oy"!# ad #y*ica((y $!@0i$! !"*(oy!!s 3i#h )!$y (o3 si((s.

Ho3!)!$, #h!y a$! )!$y i"*o$#a# as #h!y acco0# fo$ #3o 7 #hi$ds of #h! s!c#o$?so0#*0#. Th!$! a$! "ai(y fo0$ fo$"a#s 0d!$ #h! #$adi#ioa( fo$"K

@+ R


24/88

#$adi#ioa((y ac#!d as a *(ac! fo$ socia( a#h!$i. Th! 'a;aa$s i Po(ad ad

o*! 7 ai$ 3ho(!sa(! "a$!#s i R0ssia a$! #h! fo$!i !@0i)a(!#s of #his fo$"a#.

E.. %i((a! Haa#s.

+ Street %endor$;

Th!s! a$! "o'i(! $!#ai(!$s, *$o)idi *!$isha'(! food i#!"s "i(, !s,

)!!#a'(!s, f$0i#, !#c. a# #h! c0s#o"!$?s doo$s#!*. hi(! #h!i$ *$ic!s a$! hih!$

#ha a(#!$a#i)! $!#ai( cha!(s, #h!y co"*!#! o co)!i!c!.

6.2 Mod!$ Fo$"a#K

Idia?s $!#ai( !)i$o"!# has cha!d i #h! (as# 7 / y$s ad i# has

'!co"! "o$! o$ai;!d 3hich is o3 o3 as #h! "od!$ $!#ai( fo$"a#. Th!$!

ha)! '!! cha!s 'o#h o #h! d!"ad ad #h! s0**(y f$o#. O #h! d!"ad

f$o#, c0s#o"!$s ha)! '!0 s*!di "o$! as ico"!s $is! ad '$ad

coscio0s!ss ic$!as!s. Cos0"!$ $!s!a$ch sho3s #ha# ho0s!ho(ds i

"!#$o*o(i#a ci#i!s a$! $a)i#a#i #o3a$ds s0*!$"a$!#s ad o#h!$ "od!$ $!#ai(

cha!(s. O #h! s0**(y f$o#, a 0"'!$ of o$ai;!d $!#ai(!$s ha)! !#!$!d #h!

#$ad! i #h! (as# = y!a$s. Th! !#$y of M8C?s i#o $!#ai(i has d$i)! #h! $o3#h

of s*!cia(#y chais ad 0*$ad!d #h! s#ada$ds of !:is#i "0(#i 7 '$ad o0#(!#s.So"! of #h! "od!$ $!#ai( fo$"a#s co"i 0* i Idia a$! (is#!d '!(o3K

@+ S

*0$chasi. This fo$"a# is !3 #o Idia ad o(y #h$!! s0*!$"a$!# chais of

o#! !:is# 7 Food3o$(d, 8i(i$i?s ad S0'hisha. Idia s0*!$"a$!#s a$! s"a((!$

#ha #hos! i o#h!$ co0#$i!s, 3i#h f!3!$ cash $!is#!$s ad si;!s #ha# a$! a# (!as#

________________________________________________________________- 29 -


25/88

a fif#h of #h! (o'a( *(ay!$?s s!((i a$!a 6, 7 9, s@. f#. )s. 2, 7 2=,

s@. f#..

,+ Department Store$;

Th!s! (a$! s#o$!s *$i"a$i(y $!#ai( o 7 food i#!"s s0ch as a**a$!(,

foo#3!a$ ad ho0s!ho(d *$od0c#s. Th!y s#oc "0(#i*(! '$ads ac$oss *$od0c#

ca#!o$i!s, #ho0h so"! of #h!" foc0s o #h!i$ o3 s#o$! (a'!( !.. Ma$s

S*!c!$?s S#. Micha!(. 4!*a$#"!# s#o$!s a$! fo0d o hih s#$!!#s ad as

acho$s of sho**i "a((s. S!)!$a( (oca( d!*a$#"!# s#o$! chais ha)! o*!!d

sho* i Idia i #h! *as# = y$s. !.. Sho**!$s S#o*, !s#sid!,


26/88

6.2.1 Chai Fo$"a#s of R!#ai(iK

Retailer C Format$ E?perimentin4 *ith

Sho**!$s? S#o* 4!*a$#"!# S#o$! 0asi-"a((

E'oy 4!*a$#"!# S#o$! 0asi-"a((, s"a((!$ o0#(!#s, addi food

$!#ai(

C$oss3o$d La$! 'oos#o$! Co$!$ sho*s

Pi$a"yd 4!*a$#"!# S#o$! 0asi-"a((, food $!#ai(

Pa#a(oo O3 '$ad s#o$! Hy*!$"a$!#

S0'hisha S0*!$"a$!# Cosid!$i "o)i #o s!(f s!$)ic!

%i#a S0*!$"a$!# S0'0$'a disco0# s#o$!

Food3o$(d Food s0*!$"a$!# Hy*!$"a$!#, Food3o$(d !:*$!ss


27/88

" PRODUCTI%ITY PERFORM!NCE

P$od0c#i)i#y of #h! $!#ai( s!c#o$ is (o3 a# *$!s!#, (a$!(y '!ca0s! of #h!

)!$y (o3 *!!#$a#io o(y 2 of "od!$ fo$"a#s (i! s0*!$"a$!#s ad

hy*!$"a$!#s. Th!s! fo$"a#s o# o(y $ais! #h! *$od0c#i)i#y of #h! $!#ai( s!c#o$,

#h!y a(so d$i)! #h! $!s#$0c#0$i of #h! 0*s#$!a" s0**(y chai 7 (!adi #o #h!

$a*id d!)!(o*"!# of s!c#o$s (i! food *$oc!ssi. Th! (a'o0$ *$od0c#i)i#y of

$!#ai( i Idia is (o3 a# *!$ c!# of S (!)!(s. This fi0$! is = *!$ c!# fo$ food

$!#ai(i ad D *!$ c!# fo$ o - food $!#ai(i. I co"*a$iso, *$od0c#i)i#y of food

$!#ai(i i B$a;i( is 19 *!$ c!# ad of o-food $!#ai(i i Po(ad is 2= *!$ c!#.

Th! *$od0c#i)i#y *!$fo$"ac! of $!#ai( s!c#o$ has '!! di)id!d i#o #3o *a$#s 7 food$!#ai( ad o 7 food $!#ai(.

9.1 P!$fo$"ac!K

@+ Food Retailin4 Prod


28/88

4!*a$#"!# s#o$!s, s*!cia(#y chais ad 0*sca(! "0(#i-'$ads !"*(oy a

"!$! 2.= *!$ c!# of #o#a( o-food $!#ai( !"*(oy"!# ad a)!$a! 29 *!$ c!# of S

________________________________________________________________- 2D -


29/88

*$od0c#i)i#y. Th! s*!cia(#y s#o$! a)!$a! is 29 *!$ c!# )!$s0s 126 *!$ c!# i #h! S.

Th! '!s# Idia s*!cia(#y chai s#ads a# =6 *!$ c!#. 4!*a$#"!# s#o$!s ad 0*sca(!

"0(#i-'$ad s#o$!s *!$fo$" a# 1 *!$ c!# of S (!)!(s. $'a co0#!$ s#o$!s a$! a# D

*!$ c!# ad !"*(oy a$o0d D *!$ c!# of #h! #o#a( o-food $!#ai( !"*(oy"!#.

T$adi#ioa( fo$"a#s acco0# fo$ a$o0d 6 *!$ c!# of o-food $!#ai(

!"*(oy"!# ad a$! a# *!$ c!# of S *$od0c#i)i#y.

9.2 R!asos fo$ Lo3 P$od0c#i)i#yK

A (a$! *$od0c#i)i#y a* !:is#s i $!#ai( - = *!$ c!# i #h! cas! of food $!#ai(i

ad 1 *!$ c!# fo$ o-food $!#ai(. This is d$i)! 'y #3o fac#o$s - a fo$"a# "i: #ha# is

h!a)i(y s!3!d #o3a$ds #$asi#io fo$"a#s, ad *oo$ *$od0c#i)i#y of "od!$ fo$"a#s.

Th! "a+o$ $!asos fo$ #his (o3 *$od0c#i)i#y a$! as fo((o3sK

@+Unfa=o


30/88

(a$!$ sca(! d0! #o a f$a"!#!d s0**(y chai ad a s0'-sca(! *$oc!ssi s!c#o$.

Th!y

a$! a(so *!a(i;!d 'y #h! c0$$!# o*!$a#i !)i$o"!#, 3hich fa)o0$s co0#!$ s#o$!s

!.., #a: ad (a'o0$ (a3s. Cos!@0!#(y, *$ic!s i Idia s0*!$"a$!#s a$! s(ih#(y

hih!$ #ha #hos! of co0#!$ s#o$!s - a @0ic s0$)!y i 4!(hi idica#!d #ha#

s0*!$"a$!#s 3!$! 2-6 *!$ c!# "o$! !:*!si)! fo$ a s!# of '$ad!d FMC< *$od0c#s

- 3hi(! i o#h!$ co0#$i!s, s0*!$"a$!#s a$! a'o0# 1 *!$ c!# ch!a*!$ #ha co0#!$

s#o$!s. As (a$! food $!#ai(!$s i Idia '!i *assi o #h! '!!fi#s of '!##!$

*0$chasi #o c0s#o"!$s i #h! fo$" of (o3!$ *$ic!s, #h!y 3i(( '! a'(! #o ca*#0$! sha$!

"o$! $a*id(y.

,+ Poor Prod


31/88

A i!ffici!# o$ai;a#io of f0c#ios ad #ass, *oo$ "!$chadisi ad

"a$!#i si((s, (o3 sca(! of o*!$a#ios ad *oo$ s0**(i!$ $!(a#ios acco0# fo$ #h!

'0( of #h! D6 *oi# a* i s0*!$"a$!# *$od0c#i)i#y '!#3!! Idia ad #h! S.

Or4ani$ation of f


32/88

2+ Pri=ate la2elAprod


33/88

s0*!$"a$!#s i Idia.


34/88

S0*!$"a$!#s ca a(so (o3!$ cos#s o$ ic$!as! )a(0! 'y !#!$i i#o s#$a#!ic

d!a(s 3i#h 0*s#$!a" *(ay!$s. Th!s! ii#ia#i)!s ic(0d! co((a'o$a#i 3i#h food

*$oc!sso$s i *0$chasi as 3!(( as "a0fac#0$i *$i)a#! (a'!( oods, ad

!i!!$i s#$a#!ic $!(a#ioshi*s 3i#h '$ad!d oods co"*ai!s ai"!d a# ic$!asisa(!s ad $!d0ci dis#$i'0#io cos#s '!!fi# sha$!d 'y 'o#h *a$#i!s. This is a($!ady

'!ii #o ha**!. Fo$ is#ac!, a s0*!$"a$!# chai *0$chas!s 3h!a# a(o 3i#h

a a##a co"*ay #o (o3!$ cos#s, ad has s0cc!!d!d i !#!$i "a$!#i *$o"o#ioa(

d!a(s 3i#h s!)!$a( '$ad!d oods *(ay!$s.

2+ 'imited adoption of 2e$t practice$ 27


35/88

B& Ur2an Co


36/88

Idia co0#!$ s#o$! do!s "0ch "o$! i-s#o$! c0s#o"!$ had(i ad ho"! d!(i)!$i!s

#ha a S "o" 7 ad - *o* s#o$!, 3hich foc0s!s o *$o)idi a c(!a !)i$o"!# fo$

s!(f-s!$)ic!. Th! !y $!asos fo$ #his diff!$!c! a$! #h! (o3 (a'o0$ cos#s i Idia, #h!

s"a(( si;! of #h! s#o$!s ad #h! sa(! of *$od0c#s s0ch as (oos! $ais ad oi( #ha# do

o# (!d #h!"s!()!s #o s!(f-s!$)ic!.

Scale and lo>/income;

Th! (o3 !#$y 'a$$i!$s fo$ co0#!$ s#o$!s, co"'i!d 3i#h (o3 ico"! (!)!(s,

(!ads #o (o3 ca*aci#y 0#i(isa#io. E#$y i#o $!#ai( fo$ s"a(( *(ay!$s is $!(a#i)!(y !asy -

(ic!si is o# a iss0!, *$od0c# so0$ci is o# $!s#$ic#!d, (a'o0$ is !asi(y acc!ssi'(!

ad $!sid!#ia( *$o*!$#y ca '! 0s!d as #h! s#o$!. This *h!o"!o, ho3!)!$, do!s

o# aff!c# s0*!$"a$!#s fo$ 3hich #h!$! is s#i(( (a#!# d!"ad.

________________________________________________________________- 6 -


37/88

G" PROB'EMS F!CED BY TE RET!I' SECTOR

Co"*!#i#i)! '!ha)io0$ i Idia $!#ai( is cha$ac#!$is!d 'y (ac of !:*os0$! #o

'!s# *$ac#ic! si((s as 3!(( as a i"*(ici# s0'sidy fo$ co0#!$ s#o$!s #h$o0h diff!$!#ia(

!fo$c!"!# of (a3s. I addi#io, d!s*i#! a (a$! 0"'!$ of *(ay!$s, 3! s!! a

a's!c! of *$ic!-'as!d co"*!#i#io. Mii"a( hih-@0a(i#y co"*!#i#io ad a's!c! of

si((s ha)! (!d #o a (ac of *$!ss0$! #o *!$fo$" - $!s0(#i i (o3 ad $!(a#i)!(y s#aa#

*$od0c#i)i#y (!)!(s co"*a$!d #o #h! *o#!#ia(. This is d0! #o so"! fac#o$s *$!)a(!# i

#h! i#!$a( ad #h! !:#!$a( !)i$o"!# aff!c#i #h! $!#ai( id0s#$y.

=.1 I#!$a( fac#o$sK

@+ 'o> dome$tic competition;Lo3 co"*!#i#io has co#$i'0#!d #o (o3 *$od0c#i)i#y ad (o3!$ @0a(i#y of s!$)ic!.

Food retailin4; Co"*!#i#io a"o s#o$!s is (i"i#!d '!ca0s! !ach

co0#!$ s#o$! #y*ica((y has a !s#a'(ish!d c(i!#!(! 'as!d o *!$soa(

$!(a#ioshi*s ad, of#!, c$!di#. This si#0a#io is a$a)a#!d 'y a (ac of

co"*!#i#i)! *$!ss0$! f$o" "od!$ fo$"a#s.

Non/food retailin4;O #h! o-food sid! #oo, co"*!#i#io a"o $!#ai(!$s is"od!$a#!. P$ic! is f$!@0!#(y 0s!d as a #oo( #o ic$!as! sa(!s, 3i#h !)! s"a((

s#ad-a(o! sho*s '!ii #o ad)!$#is! (oca((y. I #his s!"!#, #h!

c0s#o"!$Ns #i!s #o a *a$#ic0(a$ $!#ai(!$ a$! 3!a!$ d0! #o (o3!$ f$!@0!cy of

i#!$ac#io. Th!$! is a(so $!a#!$ o$ais!d co"*!#i#io i o-food $!#ai(i -

f$o" '$ad!d s*!cia(#y chais - #ha# is $!f(!c#!d i i#s s0*!$io$ *$od0c#i)i#y

*!$fo$"ac! co"*a$!d #o food.

,+ 'ac of e?po$


38/88

!#$y of s*!cia(#y chai s#o$!s s0ch as B!!##o, 8i!, R!!'o ad Lacos#!. Th! (a$!

disco0#!$s, ca#!o$y i((!$s ad '!s# *$ac#ic! d!*a$#"!# s#o$!s Toys NRN s, Ci$c0i#

Ci#y, MacyNs, !#c a$! a's!#.

Th! a's!c! of '!s# *$ac#ic! si((s is c$i#ica(, i)! #h! co"*(!:i#y ofs0cc!ssf0((y "aai a $!#ai( '0si!ss. R!#ai(!$s !!d !:*!$#is! #o "aa! 'ac-!d

ac#i)i#i!s s0ch as so0$ci ad i)!#o$y "aa!"!#, as 3!(( as #h! f$o#-!d

f0c#ios of "!$chadisi, *$o"o#ios ad c0s#o"!$ s!$)ic!. Th! co"*(!:i#y a$is!s

3h! $!#ai(!$s !!d #o "aa! a (a$! 0"'!$ of S5s ad s0**(i!$s, as 3!(( as

!s0$! o s#oc-o0#s 3hi(! "ai#aii (o3 i)!#o$y (!)!(s. Th! iss0! of si((s is

*a$#ic0(a$(y $!(!)a# fo$ Idia, as #h! "a+o$i#y of (a$! fo$"a# $!#ai(!$s ha)! o *$io$

!:*!$i!c! i #h! id0s#$y.

Cos!@0!#(y, i# is (i!(y #ha# i #h! a's!c! of '!s# *$ac#ic! !:*!$i!c!d

*(ay!$s, #h! $!#ai( #$asi#io 3i(( #a! a (o #i"! as *(ay!$s (aci si((s ad

!:*!$i!c! a$! (!ss 3i((i #o #a! $iss ad 3i((, #h!$!fo$!, #a! (o!$ #o $a"* 0*

o*!$a#ios. I fac# #his is a($!ady ha**!i, 3i#h $!#ai(!$s o*#i fo$ (!ss i)!s#"!#-

i#!si)! ad, #h!$!fo$!, (!ss $isy *$o*osi#ios.

+ Non 'e=el pla7in4 field i$$


39/88

@+ Re$triction$ on forei4n direct in=e$tment )FDI+;

F4I has '!! a !y co#$i'0#o$ #o #h! $a*id !)o(0#io of $!#ai( i o#h!$

d!)!(o*i !coo"i!s s0ch as Thai(ad, Po(ad ad Chia. I Thai(ad, s!)! of #h!

#o* 1 $!#ai(!$s !+oy fo$!i !@0i#y ad #h! (is# ic(0d!s a"!s s0ch as Ma$o,

Ca$$!fo0$ ad /-E(!)!. Mod!$ fo$"a#s "ad! #h!i$ a**!a$ac! i Po(ad ad Chia

i #h! Ns *$i"a$i(y '!ca0s! of #h! !#$y of (o'a( chais.


40/88

ic(0di '$!ad, cof!c#io!$y, !#c., ad #h! (!acy !ff!c# is s#$o. Food *$oc!sso$s

a$!, #h!$!fo$!, o# a'(! #o $!a* #h! '!!fi#s of sca(! cos# o$ i)!s# i '$ad '0i(di.

A(so, food *$oc!sso$s a$! a's!# i !y s!"!#s s0ch as f$0i# ad )!!#a'(!s ad

d$y $oc!$i!s.4is#$i'0#io of "os# food i#!"s i)o()!s "0(#i*(! i#!$"!dia$i!s, hih cyc(! #i"!s

ad 3as#a! d0$i #$as*o$#a#io ad s#o$a!. Th! dis#$i'0#io if$as#$0c#0$! is #h!

3!a!s# i #h! f$0i# ad )!!#a'(!s chai, 3h!$! #h! a's!c! of a co(d chai ad

co)!i!# "a$!#i cha!(s (!ads #o h0! 3as#a!. A(so, #h! 0"'!$ of '$ads

*$od0c#s a)ai(a'(! is (i"i#!d. As a $!s0(#, $!#ai(!$s !!d #o d!a( 3i#h "0(#i*(!, s"a((

)!do$s ad 0d!$#a! so"! o-co$! ac#i)i#i!s s0ch as c(!ai $oc!$i!s ad 'a$

codi *$od0c#s.


41/88

$!#ai(!$s as 3!(( as #a: !)asio 'y co0#!$ s#o$!s. Ico"! #a: $a#!s diff!$ fo$ #h! #3o

fo$"a#s - (a$! $!#ai( chais a$! #a:!d a# #h! co$*o$a#! $a#! ad !!d #o *ay 6D.= *!$

c!# of #h!i$ ico"! as #a:, 3hi(! (o3!$ idi)id0a( ico"! #a: $a#!s a$! a**(i!d #o #h!

co0#!$ s#o$!s. A(so, 3! fid #ha# "os# co0#!$ s#o$! o*!$a#o$s do o# *ay ico"! #a:

a# a((, ad so"!#i"!s !)! !)ad! sa(!s #a:. Th! o-!fo$c!"!# of (a3s a**(i!s i

o#h!$ si#0a#ios as 3!((, s0ch as i #h! co#$o( o)!$ #h! sa(! of co0#!$f!i# *$od0c#s

ad adh!$!c! #o (a'o0$ (a3s disc0ss!d i #h! !:# s!c#io.

%ar7in4 ta? rate$ acro$$ $tate$; I addi#io #o #h! '!!fi#s acc$0i #oco0#!$ s#o$!s f$o" o-!fo$c!"!# of (a3s, #h! !:is#i #a: s#$0c#0$! ac#0a((y

i"*os!s a *!a(#y o $!#ai( chais o*!$a#i i "0(#i*(! a$!as. Th! c0$$!# sa(!s #a:

s#$0c#0$! is cha$ac#!$is!d 'y diff!$!c!s i $a#!s ac$oss s#a#!s *(0s #h! i"*osi#io of

a addi#ioa( c!#$a( (!)y o i#!$s#a#! sa(!s. O #o* of #his, a #a: oc#$oi is (!)i!d o

#h! "o)!"!# of oods f$o" o! dis#$ic# #o ao#h!$. This *$ac#ic! !a#i)!(y i"*ac#s

$!#ai( chais, as a hih!$ *$o*o$#io of #h!i$ "!$chadis! is so0$c!d f$o" o0#sid! #h!

s#a#! of o*!$a#io.

Differential enforcement of la2o$; La'o0$ (a3s i Idia (i"i# #h! ho0$s

of 3o$ fo$ a $!#ai( !"*(oy!! #o !ih# ho0$s, $!@0i$! #ha# a sho* '! c(os!d o! day a3!! ad s0!s# #h! "ii"0" 3a!s #o '! *aid.

O$ais!d $!#ai(!$s #y*ica((y adh!$! #o #h!s! o$"s, 3hi(! co0#!$ s#o$!s a$! o*!

a("os# #h$o0ho0# #h! y!a$ 3i#h a a)!$a! 3o$i day *!$ !"*(oy!! a"o0#i #o

12-16 ho0$s.

Non/pa7ment of maret rate$ for inp


42/88

*o3!$ cos#s, *ayi $!sid!#ia( $a#!s #ha# a$! !a$(y ha(f #h! co""!$cia( $a#!s *aid 'y

"od!$ $!#ai( chais.

+ S$; I #h! *as#, $!# (a3s ha)! fa)o0$!d #!a#s, "ai

o3!$s 3a$y of $!#i o0# #h!i$ *$o*!$#y. I# is diffic0(# #o $!co)!$ $!#!d *$o*!$#i!s f$o"

#!a#s o$ #o ic$!as! $!#s, ad (ad dis*0#!s s#ay *!di i co0$#s fo$ y!a$s. Th!

(i"i#!d co""!$cia( (ad #ha# is a)ai(a'(! is #a! 'y co0#!$ s#o$! o*!$a#o$s, 3ho ha)!

'!! i #h! #$ad! fo$ !!$a#ios ad of#! (ac a(#!$a#i)! occ0*a#ios #h!$!fo$!

(i"i#i s0**(y i#o #h! "a$!#.

Honin4 la>$; oi (a3s $!s#$ic# #h! s0**(y of $!a( !s#a#! as 3!(( as a##ach

cos#$ai#s #o *$o*!$#y d!)!(o*"!# fo$ $!#ai(. I #h! "as#!$ *(as of "os# ci#i!s, (ad

is c(!a$(y d!"a$ca#!d fo$ )a$io0s *0$*os!s - a$ic0(#0$a(, id0s#$ia(, $!sid!#ia( ad

co""!$cia( - ad i# is !:#$!"!(y diffic0(# #o co)!$# (ad !a$"a$!d fo$ o#h!$ *0$*os!s

#o $!#ai(co""!$cia( 0s!. Ho3!)!$, ;oi (a3s )a$y 'y s#a#!. So, 3hi(! (ad

co)!$sios fo$ co""!$cia( 0s! a$! !a$(y i"*ossi'(! i 4!(hi, #h! o)!$"!#s i

so"! so0#h!$ s#a#!s a$! "o$! f(!:i'(!.

Non/a=aila2ilit7 of 4o=ernment land3 com2ined >ith fra4mented

________________________________________________________________- 92 -


43/88

pri=ate holdin4$; Th!s! fac#o$s "a! i# diffic0(# fo$ $!#ai(!$s #o ac@0i$! (a$! *(o#s of

(ad 'o#h 3i#hi #h! ci#y ad i #h! s0'0$'s. Th! (oca( a0#ho$i#i!s #y*ica((y o3 (a$!

#$ac#s of )aca# (ad 'o#h i ci#y c!#$!s ad i #h! s0'0$'s, ad a0c#io #his (ad i

(o#s o(y a# if$!@0!# i#!$)a(s. This cos#$ais s0**(y ad *0sh!s 0* $!a( !s#a#!

*$ic!s. M!a3hi(!, *$i)a#! ho(dis a$! #y*ica((y s"a((, d0! #o 3hich $!a( !s#a#!

d!)!(o*!$s !!d #o coso(ida#! (ad o3!d 'y "0(#i*(! idi)id0a(s, 3hich is a

a$d0o0s #as. I #h! s0'0$'s, #h! a's!c! of if$as#$0c#0$! f0$#h!$ $!d0c!s #h! (ad

a)ai(a'(! #ha# ca '! 0s!d fo$ co""!$cia( 0s!.

'ac of tran$parenc7; Th! $!a( !s#a#! "a$!# i Idia is !:#$!"!(y

diso$ais!d ad is "a$!d 'y a (ac of ifo$"a#io o *$ic!s ad c(!a$(y

!s#a'(ish!d o3!$shi* #i#(!s. Sic! ifo$"a#io a'o0# #his "a$!# is disa$!a#!d, i.!.,

3i#h idi)id0a( '$o!$s, !)! si"i(a$, ad+ac!# *(o#s of#! co""ad diff!$!# $!#a(s.

Joi#(y-h!(d *$o*!$#i!s ad co"*(!: s0'-(!##i a$$a!"!#s f0$#h!$ co"*(ica#!

o3!$shi* $ih#s. Fia((y, hih *$o*!$#y #a:!s d$i)! o3!$s #o d!"ad a siifica#

*a$# of #h! *ay"!# i cash ad 3i#ho0# $!co$ds. A(( #h!s! fac#o$s "a! acc!ss #o $!a(

!s#a#! fo$ o$ais!d *(ay!$s a co"*(!: #as.

R!a( !s#a#! a)ai(a'i(i#yNs i"*ac# o #h! d!)!(o*"!# of $!#ai( ca '! +0d!d

f$o" #h! !:*!$i!c! of So0#h Idia. A !y s#i"0(0s fo$ #h! $!#ai( 'oo" i Ch!ai ad

Baa(o$! has '!! #h!i$ (o3!$ *$o*!$#y cos#s 3h! co"*a$!d #o ci#i!s (i! M0"'ai

ad 4!(hi.

G+ 'o> Income;

IdiaNs *!$ ca*i#a ico"! is *!$ c!# of S (!)!(s a# *0$chasi *o3!$

*a$i#y, (!adi #o (o3 cos0"*#io. O #h! i*0# sid!, cash cos#s a$! (o3 i)! #ha#

co0#!$ s#o$!s a$! #y*ica((y fa"i(y $0 3i#h so"! hi$!d h!(*, ad fa"i(y (a'o0$ is

!i#h!$ o# assi!d ay )a(0! o$ (acs a(#!$a#i)! occ0*a#ios. This 3i(( cha! as

a(#!$a#i)! !"*(oy"!# o**o$#0i#i!s !"!$! 3i#h !coo"ic $o3#h ad !d0ca#io.

Is0ffici!# d!"ad is (i!(y #o ho(d 'ac #h! !s#a'(ish"!# of "od!$ $!#ai(

fo$"a#s i $0$a( a$!as. C0$$!#(y, $0$a( !!ds a$! "!# #h$o0h s"a((, !!$a(-*0$*os!

________________________________________________________________- 96 -


44/88

)i((a! s#o$!s ad 3!!(y s#$!!# "a$!#s (haats). Th!s! haats a$! !:#$!"!(y (o3-cos#

fo$"a#s ca#!$i #o #h! $!@0i$!"!#s of a'o0# 1= )i((a!s ad *$o)idi a )a$i!#y of

oods ad s!$)ic!s - f$o" food $ais #o !#!$#ai"!#. A hy*!$"a$!#s0*!$"a$!#

3o0(d #h! dai(y sa(!s *o#!#ia( f$o" #his ca#ch"!# a$!a #o '! (o3, ad ca#!$i #o a

(a$!$ $adi0s diffic0(#, i)! #h! co!c#i)i#y *$o'(!"s. I addi#io #o (o3 d!"ad,

"od!$ fo$"a#s 3o0(d a(so fid so0$ci diffic0(# as a (a$! sha$! of (oca(

"!$chadis!

'$ads *(0s co0#!$f!i#s is cos0"!d i $0$a( a$!as. Fia((y, co"*!#i 3i#h #h!

socia(!#!$#ai"!# *$o*osi#io of #h! !:is#i cha!( 3o0(d '! #o0h.

.+ Poor Ur2an Infra$tr


45/88

!.. A chai s#o$! $!@0i$!s 12 (ic!s!s '!fo$! i# ac#0a((y co""!c!s 3i#h i#s

o*!$a#ios.

1+ C


46/88

Section ,; Impact of FDI

." INTRODUCTION TO FDI

.1 O=er=ie>;

Th! y!a$ 11 "a$s a !3 $o3#h *has! of F4I i Idia 3i#h a a(( #i"!

hih f(o3 of F4I. Fo((o3i #h! Id0s#$ia( Po(icy 11, a (a$! 0"'!$ of fo$!i

co"*ai!s f$o" diff!$!# *a$#s of #h! 3o$(d $0sh!d i#o Idia. I #his *!$iod, i

addi#io #o #ho0sads of fo$!i co((a'o$a#ios i Idia, as "ay as 19= fo$!i

co"*ai!s $!is#!$!d i Idia 3i#hi a s*a of 1 y!a$s f$o" 11-2.

Co"*ai!s (i!

ad i#s fo$!i !:cha! $!s!$)! had $!ach!d a 0s0s#aia'(! (!)!(.

I#!$a#ioa( Mo!#a$y F0d IMF ad o$(d Ba a$!!d #o *$o)id! (oas #o

Idia o #h! codi#ios #ha# Idia 3i(( "a! "a+o$ cha!s #o (i'!$a(i;! #$ad! ad

i)!s#"!#s i Idia. Th! do"!s#ic *$!ss0$! #o "!!# #h! i"*o$#s of !ss!#ia(

co""odi#i!s ad #h! !:#!$a( *$!ss0$! #o (i'!$a(i;! Idia "a$!# fo$c!d #h!


47/88

!:cha! "a$!#. B0# fo$ s!c#o$s (i! 'ai, ci)i( a)ia#io, *!#$o(!0", $!a(

!s#a#!, )!#0$! ca*i#a( f0ds, if$as#$0c#0$!, s!$)ic! s!c#o$, a#o"ic !!$y,

d!f!c!, a$ic0(#0$! ad *(a#a#io, *$i# "!dia, '$oadcas#i ad *os#a(

s!$)ic!s, a0#o"a#ic a**$o)a( of F4I 3!$! a((o3!d i a(( o#h!$ s!c#o$s d0$i #his

*!$iod.

Th! #o#a( 0"'!$ of fo$!i co((a'o$a#ios ic$!as!d f$o" / i #h! y!a$

11 #o 2199 i #h! y!a$ 2. Si"i(a$(y, #h! a"o0# of F4I ic$!as!d f$o" =1=

"i((io I8R #o 6,/6,/22 "i((io I8R d0$i #his *!$iod. I# is a(so o's!$)!d #ha#

#h!$! has '!! a siifica# shif# i #h! sha$! of F4I f$o" diff!$!# co0#$i!s #ha#

ha)! '!! i)!s#i i Idia. Th! sha$! of F4I f$o" #h! i#!d 5ido" $!d0c!d

#o a("os# 1 ad #h! sha$! of F4I f$o" 5 SA a(so d!c$!as!d d0$i #his

*!$iod. I#!$!s#i(y #h! sha$! of o#h!$ co0#$i!s ic(0di S. 5o$!a, Ma(aysia,

A0s#$a(ia, ad co0#$i!s f$o" Asia ad E0$o*!a io ic$!as!d #o o)!$ = of

#h! #o#a( F4I d0$i #his *!$iod.

I a *!$iod of a'o0# 9 y!a$s sic! #h! B$i#ish (!f# Idia, SA has ai!d

"o$! co#$o( of #h! Idia !coo"y #h$o0h di$!c# i)!s#"!#s of A"!$ica

co"*ai!s i Idia. O3i #o #h! *oo$ 'a(ac! of *ay"!# *osi#io i 1, Idia

had #o s!! (oa f$o" #h! I#!$a#ioa( Mo!#a$y F0d IMF #ha# is (a$!(y

co#$o((!d 'y SA. IMF 0s!d #his o**o$#0i#y #o fo$c! Idia #o (i'!$a(i;! i#s

!coo"y so #ha# fo$!i co"*ai!s co0(d ha)! "o$! !asy acc!ss #o #h! Idia

!coo"y ad "a$!#. I #h! $!c!# d!cad!, ho3!)!$, co"*ai!s f$o" "ay

o#h!$ co0#$i!s ha)! ic$!as!d #h!i$ sha$! of di$!c# i)!s#"!#s i Idia.

I s0""a$y, #h! *oo$ 'a(ac! of *ay"!# *osi#io of Idia ad *$!ss0$! of

IMF ad o$(d Ba #o (i'!$a(i;! #h! Idia !coo"y fo$c!d #h!


48/88

Fo$!i 4i$!c# I)!s#"!# F4I has '!! $!coi;!d as o! of #h!

i"*o$#a# d$i)!$s of #h! !coo"ic $o3#h of o0$ co0#$y.


49/88


50/88

Idia i a#ici*a#io of #h! 0s! of f0ds fo$ a**$o)!d !d 0s!s. Ay i)!s#"!#

f$o" a fo$!i fi$" i#o Idia $!@0i$!s #h! *$io$ a**$o)a( of


51/88

'i((io i 1/-D, co"*a$!d #o 'i((io i 1-/. Fo$!i 4i$!c# I)!s#"!#

F4I i

________________________________________________________________- =1 -


52/88

1/-D 3as a !s#i"a#!d 6.1 'i((io, 0* f$o" 2./ 'i((io i1-/. Th!

o)!$"!# is (i!(y #o do0'(! F4I if(o3s 3i#hi #3o y!a$s. Fo$!i *o$#fo(io

i)!s#"!# 'y fo$!i is#i#0#ioa( i)!s#o$s 3as siifica#(y (o3!$ a# /=2

"i((io fo$ fisca( 1/-D, do3 co"*a$!d #o 1. 'i((io i1-/, *a$#(y

$!f(!c#i #h! !ff!c# of #h! $!c!# c$isis i Asia.

.6 (raph$;

.6.1

________________________________________________________________- =2 -


53/88

.6.2 F4I If(o3 i Idia fo$ #h! y!a$ 2= -

________________________________________________________________- =6 -


54/88

.6.6 Fiacia( Y!a$ 7 3is! if(o3s E@0i#y ca*i#a( o(y

________________________________________________________________- =9 -


55/88

0" FDI IN RET!I' SECTOR

/.1 C0$$!# Sc!a$ioK

Th!$! has '!! a h!a#!d d!'a#! a'o0# o*!i 0* #h! $!#ai( #$ad! s!c#o$i Idia #o fo$!i di$!c# i)!s#"!# F4I. A((o3i fo$!i i)!s#"!# #o co"! i

$!#ai( #$adi is s0**os!d #o idica#! #ha# !coo"ic $!fo$"s a$! o #$ac ad #ha#

(i! i Chia, a(-Ma$#, Ca$fa$!, MA5RO, / E(!)! ad "ay "o$! ia# $!#ai(

s#o$! chais, 3o0(d '! s!! i Idia.

Th! Idia $!#ai( s!c#o$ is i #h! "ids# of a 'oo". A $!*o$# 'y 5PM


56/88

/.2 B!!fi#s of F4I i R!#ai(K

F4I co0(d s!! a i"*$o)!"!# i #h! (if!s#y(! of #h! "idd(!-ico"! $o0*,

as #h! !#$y of i#!$a#ioa( *(ay!$s 3o0(d (if# #h! 3a! s#$0c#0$! i #h!

id0s#$y.

As a $!s0(# of F4I f(o3s, o! ca !:*!c# #o s!! s#!**!d-0* i)!s#"!#s i

#!cho(oy. Th! $!#ai( ia# ho0s!s ca '$i #h!i$ '!##!$ "aa!$ia(

*$ac#ic!s ad IT-f$i!d(y #!chi@0!s.

I#$od0c#io of a 3id! )a$i!#y of *$od0c#s #o #h! "a$!#.

E)!#0a((y, !:*o$#s 3i(( a(so s#ad #o ai 3i#h i)!s#"!#s f(o3i i#o #h!

s0**(y chai s#$0c#0$!.

Th! h0! !"*(oy"!# ca*aci#y of #h! s!c#o$ 3i(( ic$!as! #h! #a:-*ayi

*o*0(a#io i #h! co0#$y.

I# 3i(( !a'(! h0! if(o3 of i)!s#"!# ad f0ds.

I# 3i(( (!ad #o


57/88

H!c!, 'o#h #h! cos0"!$s ad #h! s0**(i!$s 3o0(d (os!, 3hi(! #h! *$ofi#

"a$is of s0ch $!#ai( chais 3o0(d o 0*. Th$!!, i# 3o0(d (!ad #o (o*sid!d

$o3#h i ci#i!s, ca0si disco#!# ad socia( #!sio !(s!3h!$!.

hi(! #h!$! is a !:*(osio i d!)!(o*"!# of $!#ai( "a((s ac$oss #h!

co0#$y, #h!i$ *$ici ad @0a(i#y #oday a$! fa$ f$o" i#!$a#ioa( o$"s. O #h!

o#h!$ had, 3i#h (i##(! s0*!$- *$!"i0" s*ac! '!i d!)!(o*!d #o ho0s! !:c(0si)!

'$ads, #h! $!#a(s i #his s!"!# is !:*!c#!d #o #o0ch a a((-#i"! hih sic! #h!

*$!"i0" '$ads 3i(( o(y s!# 0* s#o$!s i !:c(0si)! a$!as 3h!$! #h! s*ac! is

a($!ady sca$c!.


58/88

#i(( da#! 3i(( ha)! i""!dia#! ad di$! cos!@0!c!s. E#$y of fo$!i

*(ay!$s o3 3i(( "os# d!fii#!(y dis$0*# #h! c0$$!# 'a(ac! of #h! !coo"y, 3i((

$!d!$ "i((ios of s"a(( $!#ai(!$s +o'(!ss 'y c(osi #h! s"a(( s(i# of o**o$#0i#y

a)ai(a'(! #o #h!". I"ai! if a(-Ma$#, #h! 3o$(d?s 'i!s# $!#ai(!$ s!#s 0*

o*!$a#ios i Idia a# *$i"! (oca#ios i #h! 6= (a$! ci#i!s ad #o3s #ha# ho0s!

"o$! #ha 1 "i((io *!o*(! #h! s0*!$"a$!# 3i(( #y*ica((y s!(( !)!$y#hi, f$o"

)!!#a'(!s #o #h! (a#!s# !(!c#$oic ad!#s, a# !:#$!"!(y (o3 *$ic!s #ha# 3i(( "os#

(i!(y 0d!$c0# #hos! i !a$'y (oca( s#o$!s s!((i si"i(a$ oods. a(- Ma$# 3o0(d

'! "o$! (i!(y #o so0$c! i#s $a3 "a#!$ia(s f$o" a'$oad, ad *$oc0$! oods (i!

)!!#a'(!s ad f$0i#s di$!c#(y f$o" fa$"!$s a# *$!o$dai!d @0a#i#i!s ad

s*!cifica#ios. This "!as a fo$!i co"*ay 3i(( '0y 'i f$o" Idia ad a'$oad

ad '! a'(! #o s!(( (o3 7 s!)!$!(y 0d!$c0##i #h! s"a(( $!#ai(!$s. Oc! a

"oo*o(y si#0a#io is c$!a#!d #his 3i(( #h! #0$ i#o '0yi (o3 ad s!((i hih.

S0ch $!-o$i!#a#io of so0$ci of "a#!$ia(s 3i(( co"*(!#!(y disi#!$a#! #h!

a($!ady !s#a'(ish!d s0**(y chai. I #i"!, #h! !ih'o0$i #$adi#ioa( o0#(!#s a$!

a(so (i!(y #o fo(d ad *!$ish, i)! #h! >*$!da#o$y? *$ici *o3!$ #ha# a fo$!i

*(ay!$ is a'(! #o !:!$#. As 8ic Ro''is 3$o#! i #h! co#!:# of #h! Eas# Idia

Co"*ay, UBy co#$o((i 'o#h !ds of #h! chai, #h! co"*ay co0(d '0y ch!a*

ad s!(( d!a$V. Th! *$od0c!$s ad #$ad!$s a# #h! (o3!s# (!)!( of o*!$a#ios 3i((

!)!$ fid *(ac! i #his s!c#o$, 3hich 3o0(d o3 ha)! d!"ad "os#(y o(y fo$

f(0!# E(ish-s*!ai h!(*!$s. Ha)i '!! 0*$oo#!d f$o" #h!i$ #$adi#ioa( fo$"

of '0si!ss, #h!s! *!$sos a$! 0(i!(y #o '! s0i#a'(! fo$ o#h!$ a$!as of 3o$

!i#h!$.

I# is !asy #o )is0a(is! f$o" #h! disc0ssio a'o)!, ho3 #h! !#$y of +0s# o!

'i $!#ai(!$ is ca*a'(! of d!s#$oyi a 3ho(! (oca( !coo"y ad s!d i# h0$#(i

do3 a s*i$a(. O! "0s# a(so o# fo$!# ho3 co0#$i!s (i! Chia, Ma(aysia ad

Thai(ad, 3ho o*!!d #h!i$ $!#ai( s!c#o$ #o F4I i #h! $!c!# *as#, ha)! '!!

fo$c!d #o !ac# !3 (a3s #o ch!c #h! *$o(ific !:*asio of #h! !3 fo$!i "a((s

ad hy*!$"a$!#s.

________________________________________________________________- =D -


59/88


60/88

1" TECNO'O(Y IN RET!I'

D.1 RFI4 TasK

D.1.1 I#$od0c#ioK

Radio F$!@0!cy Id!#ifica#io RFI4 #!cho(oy has '!! i 0s! fo$

d!cad!s, ii#ia((y i "i(i#a$y a**(ica#ios, s0ch as #$aci "a#!$ia( i $0!d ad

fas#-"o)i si#0a#ios, 3h!$! 'a$cod!s co0(d o# '! 0s!d. O(y 3i#hi #h! *as#

________________________________________________________________- -


61/88

f!3 y!a$s has #his #!cho(oy '!! cosid!$!d as a co"*(!"!# fo$ 'a$cod!

#!cho(oy i #h! $!#ai( id0s#$y.

Th! RFI4 #a cosis#s of a #iy chi*, a**$o:i"a#!(y of #h! si;! of a

*ih!ad, o 3hich #h! RFI4 cod! $!sid!s, ad a s"a(( a#!a. RFI4 #as ca

'! "a0fac#0$!d 3i#h a )a$i!#y of chi* a$chi#!c#0$!s ad cod! fo$"a#s. O! cod!

fo$"a# #ha# !+oys s0's#a#ia( s0**o$# i #h! $!#ai( id0s#$y is #h! E(!c#$oic

P$od0c# Cod! EPC. Th! EPC 0s!s a -'i# sch!"! ad)oca#!d 'y EPC(o'a(

*$!)io0s(y o3 as #h! A0#o-I4 C!#!$.

Th$!! as*!c#s of RFI4 #ha# "a! i# a *a$#ic0(a$(y a##$ac#i)!

a(#!$a#i)! #o 'a$cod! a$!K

I# a((o3s ifo$"a#io #o '! $!ad 'y $adio 3a)!s f$o" a #a 3i#ho0# $!@0i$i

(i! of sih# scai.

I# a((o3s )i$#0a((y si"0(#a!o0s ad is#a#a!o0s $!adi of "0(#i*(! #as

i #h! )icii#y of #h! $!ad!$.

Each #a ca ha)! a 0i@0! cod! #ha# 0(#i"a#!(y a((o3s !)!$y #a!d i#!"

#o '! idi)id0a((y acco0#!d fo$.

A #y*ica( RFI4 sys#!" 0s!s RFI4 #as a##ach!d #o o'+!c#s, 3hich id!#ify

#h!"s!()!s 3h! d!#!c#i a sia( f$o" a RFI4 $!ad!$ 'y !"i##i $adio 3a)!s sia(s #$as"issio.

This id!#ifica#io of #h! o'+!c# #a!s *(ac! #h$o0h #h! EPC,

ca*#0$!d 3i#hi a RFI4 #a. Th! EPC co#ais a a$$ay of *$od0c# ifo$"a#io

#ha# ca 0i@0!(y id!#ify a idi)id0a( i#!", 3h!#h!$ #ha# o'+!c# is a cos0"!$

i#!", cas!, *a((!#, (ois#ic ass!# o$ )i$#0a((y ay#hi !(s!. This *$o)id!s #h! a'i(i#y

#o (oca#! o$ #$ac a *$od0c# #h$o0h #h! s0**(y chai, ad #o $!ad #h!s! EPCs a#

a dis#ac! ad o0# of #h! di$!c# (i! of sih#. Th! EPC #as co#ai RFI4

a#!as #ha# co""0ica#! #h! EPC 0"'!$s #o #h! EPC $!ad!$s 3i#hi #h!

EPC(o'a( 8!#3o$.

Fo$ $!#ai(, #h! $!a( *o3!$ of #his #!cho(oy $!s0(#s f$o" associa#i 0i@0!

id!#ifi!$s 3i#h o#h!$ ifo$"a#io of i#!$!s# f$o" fi!(ds i a da#a'as! #ha# *!$#ais

#o #h! i#!". J0s# a f!3 !:a"*(!s as *!$ $!#ai( a**(ica#io a$!K

________________________________________________________________- 1 -


62/88

4a#! of "a0fac#0$!.

Ti"! s*!# i #$asi#.

Loca#io of dis#$i'0#io c!#$! ho(di #h! i#!".

8a"! of #h! (as# *!$so #o had(! #h! i#!".

A"o0# fo$ 3hich #h! i#!" 3as so(d.

Pay"!# "!#hod 0s!d i '0yi #h! i#!".

E:*i$a#io da#!.

Las# da#! of s!$)ic!.

a$$a#y *!$iod.

hi(! "os# of #h!s! fi!(ds 3i(( '! s#o$!d i a co"*0#!$ sys#!" #ha# is

d!#ach!d f$o" #h! #a, so"! RFI4 #a #!cho(oi!s *!$"i# addi#ioa( ifo$"a#io

#o '! 3$i##! #o #h! #a i#s!(f as 3!(( as #o '! $!"o)!d f$o" i#.

________________________________________________________________- 2 -


63/88

D.1.2 RFI4 i Idia R!#ai(K

i#h #h! #!:#i(! @0o#a *has!-o0#, Idia #!:#i(! a$"!# !:*o$#!$s 3i((

!"!$! 3i#h a siifica# *$!s!c! o #h! so0$ci *(as of "a+o$ $!#ai(!$s i #h!

S ad #h! E0$o*!a io. a(-Ma$#, fo$ !:a"*(!, *(as #o so0$c! S411-

'i((io 3o$#h of #!:#i(! "!$chadis! o0# of Idia a(o!, 3hi(! JC P!!y, *(as #o

+ac i# 0* #o S42 'i((io. Ma$s S*!c!$, To""y Hi(fi!$, Ca$$!fo0$ ad


64/88

i#h i#s )a$i!d 0sa! ac$oss s!c#o$s, RFI4 ca '! #!$"!d as o! of #h!

"os# *$o"isi ad a#ici*a#!d #!cho(oi!s i $!c!# y!a$s *ois!d fo$ o#hi

(!ss #ha co"*(!#! #$asfo$"a#io i #h! s0**(y chai.

D.1.6 Role of EPC (lo2al IndiaK

EPC(o'a( Idia, a di)isio of EA8 Idia, is a $!ioa( "!"'!$

o$aisa#io of EPC(o'a( Ic, #h! o#-fo$-*$ofi# 'ody s!# 0* #o !s#a'(ish (o'a(

s#ada$ds $!a$di #h! d!)!(o*"!#, i"*(!"!#a#io ad ado*#io of E(!c#$oic

P$od0c# Cod! EPC ad Radio F$!@0!cy Id!#ifica#io RFI4 #!cho(oy, ad

s0**o$# of #h! EPC(o'a( 8!#3o$.

EA8 Idia is a $!is#!$!d soci!#y, *$o"o#!d 'y #h! Miis#$y of Co""!$c!,


65/88

!ss!#ia((y d$i)! 'y a !ffici!# S0**(y Chai 3hich i #0$ is d!*!d!# o #h!

a)ai(a'i(i#y of acc0$a#! ad $!(ia'(! da#a ifo$"a#io i $!a( #i"!. Th! A0#o"a#!d

Id!#ifica#io ad 4a#a Ca*#0$! AI4C T!cho(oi!s i.!. Ba$-codiRFI4

co"'i!d 3i#h Mo'i(! Co"*0#i ad i$!(!ss LA8 #!cho(oi!s !"*o3!$s #h!

$!#ai(i '0si!ss #o "!!# #h!s! c$i#ica( !!ds of co((!c#io of @0a(i#y da#a a# a((

#h! *oi#s of ac#i)i#y ac$oss #h! co"*(!#! s0**(y chai.

Ba$ codi is a *$o)! #!cho(oy fo$ a0#o"a#!d da#a co((!c#io !!ds of

#h! '0si!ss. I (ay"a #!$"s, Ua 'a$cod! ac#0a((y co#ais ay i)! a(*ha

0"!$ic ifo$"a#io !cod!d i #h! fo$" of Ba$s ad S*ac!s 0si i#!$a#ioa(

sy"'o(oi!s 3hich a$! (i! (a0a! of #h! 'a$cod!.V O $!#ai( *$od0c#s, #h!

'a$cod! o$"a((y co#ais #h! *$od0c# I4 !.. i#!" cod!, *$od0c# cod! !#c.

3hich is $!@0i$!d #o '! !#!$!d i#o #h! co"*0#!$ sys#!" #o 0*da#! #h! da#a a#

#h! #i"! of 'i((i, $!c!i)i o$ dis*a#ch. i#h #h! 'a$cod! i *(ac!, #h! da#a is f!d

i#o #h! sys#!" a0#o"a#ica((y 'y scai #h! 'a$cod! 0si a 'a$ cod! sca!$

is#!ad of *0chi #h! sa"! #h$o0h a !y'oa$d. I# is '!!ficia( i #h! fo((o3i

3aysK

@+ Startin4 at Point of Sale$;

Th! fas# ch!co0# ad $!d0c!d @0!0!s a##$ac#s "o$! c0s#o"!$s ad

!s0$!s #ha# c0s#o"!$ )isi# #h! s#o$! aai ad aai. Th! Ba$ Cod! sca!$s a#

*oi# of sa(!s h!(* i #h! !(i"ia#io of @0!0!s 3i#h fas# ch!co0# 'y a0#o"a#i

#h! da#a !#$y i#o sys#!". Th! '!!fi# is #ha# #h! da#a f!d is !a$(y 1 *!$ c!#

acc0$a#! ad #h! 3ho(! I#!" cod! is sca!d i a f$ac#io of s!cod. Th!

sca!$s co"! i (o#s of )a$i!#i!s #o "!!# )a$i!d !!ds of $!#ai(!$s.

,+ In the Store;

Ba$cod!s so(0#ios *(ay a i"*o$#a# $o(! i 0#i(isi c0s#o"is!d i-s#o$!

"a$!#i, ic$!asi 0*-s!((i ad c$oss-s!((i o**o$#0i#i!s, @0ic(y (oca#i

"!$chadis!, !asi(y "oi#o$i i)!#o$y ad ch!ci *$ic!s. Th! s#a#!-of-#h!

a$# so(0#ios 'as!d o 'a$cod! #!cho(oy !a'(!s $!#ai(!$s #o i"*$o)! #h!

c0s#o"!$Ns !:*!$i!c! a# #h! *$i"a$y *oi# of d!cisio 7 #h! s!((i f(oo$.

________________________________________________________________- = -


66/88

+ Di$tri2


67/88

ic$!asi #h! *o*0(a$i#y of #h!s! #!cho(oi!s. This #!cho(oy 3i(( '! f0$#h!$

'oos#!d if #h!


68/88

" CURRENT SCEN!RIO OF INDI!N RET!I' SECTOR

.1F!a#0$!s of #h! C0$$!# Sc!a$ioK

So0$c!K IMA


69/88

$!s*od!d #o #his *h!o"!o 'y i#$od0ci co#!"*o$a$y $!#ai( fo$"a#s

s0ch as hy*!$"a$!#s ad s0*!$"a$!#s i #h! !3 *oc!#s of $o3#h.

I addi#io, *!#$o - $!#ai(i !ffo$#s of *!#$o(!0" ia#s sca##!$!d #h$o0h

o0# #h! co0#$yNs (adsca*! ha)! a(so !s0$!d #ha# s"a((!$ #o3s a$! a(so

!:*os!d #o "od!$ $!#ai(i fo$"a#s.

Ma(( d!)!(o*"!# ac#i)i#y i #h! s"a(( #o3s is a(so *ici 0* a# a $a*id

*ac!, #h!$!'y, c$!a#i @0a(i#y s*ac! fo$ $!#ai(!$s #o f0(fi(( #h!i$ a$!ssi)!

!:*asio *(as. Th0s, #h! >$!#ai( 'oo"N, D= of 3hich has so fa$ '!!

coc!#$a#!d i #h! "!#$os is '!ii #o *!$co(a#! do3 #o s"a((!$ ci#i!s

ad #o3s. Th! co#$i'0#io of #h!s! #i!$-II ci#i!s #o #o#a( o$ai;!d $!#ai(i

sa(!s is !:*!c#!d #o $o3 #o 2-2=. Fa)o$a'(! d!"o$a*hic ad *sycho$a*hic cha!s $!(a#i #o IdiaNs

cos0"!$ c(ass, i#!$a#ioa( !:*os0$!, a)ai(a'i(i#y of ic$!asi @0a(i#y

$!#ai( s*ac!, 3id!$ a)ai(a'i(i#y of *$od0c#s ad '$ad co""0ica#io a$!

so"! of #h! fac#o$s #ha# a$! d$i)i #h! $!#ai( i Idia.

Ma0fac#0$!$s i id0s#$i!s s0ch as FMC

"!$chadis! o a 3ho(!sa(! 'asis i Baa(o$! ad M0"'ai $!s*!c#i)!(y.

Th!s! !3-fo$"a# cash-ad-ca$$y s#o$!s a##$ac# (a$! )o(0"!s f$o" a

________________________________________________________________- -


70/88

si;!a'(! 0"'!$ of $!#ai(!$s 3ho do o# ha)! #o "ai#ai $!(a#ioshi*s

3i#h "0(#i*(! s0**(i!$s fo$ a(( #h!i$ !!ds.

R0$a( $!#ai(i - of (a#!, IdiaNs (a$!(y $0$a( *o*0(a#io has a(so ca0h# #h!!y! of $!#ai(!$s (ooi fo$ !3 a$!as of $o3#h. ITC (a0ch!d #h!

co0#$yNs fi$s# $0$a( "a(( > Cha0*a( Saa$N , off!$i a di)!$s! *$od0c# $a!

f$o" FMC< #o !(!c#$oics a**(iac! #o a0#o"o'i(!s, a##!"*#i #o *$o)id!

fa$"!$s a o!-s#o* d!s#ia#io fo$ a(( of #h!i$ !!ds. O#h!$ co$*o$a#!

'odi!s ic(0d! Esco$#s, ad Ta#a Ch!"ica(s 3i#h Ta#a 5isa Sasa$ a$!

s!##i 0* a$i-s#o$!s #o *$o)id! *$od0c#ss!$)ic!s #a$!#!d a# #h! fa$"!$

i o$d!$ #o #a* #h! )as# $0$a( "a$!#.

.6Idia R!#ai( 'y 2 -/K

= "i((io s@ f# of @0a(i#y s*ac! 0d!$ d!)!(o*"!#.

/ "a+o$ ci#i!s #o acco0# fo$ 91 "i((io s@ f# d!)!(o*"!#.

6 "a((s, sho**i c!#$!s ad "0(#i*(!:!s 0d!$ cos#$0c#io.

To o*! 6= hy*!$"a$!#s, 62= (a$! d!*a$#"!# s#o$!s, 1=

s0*!$"a$!#s ad o)!$ 1, !3 o0#(!#s .

S 1 'i((io of '0si!ss #o o$ai;!d $!#ai(.

Sca(a'(! ad P$ofi#a'(! R!#ai( Mod!(s a$! 3!(( !s#a'(ish!d fo$ "os# of #h!

ca#!o$i!s.

Ra*id E)o(0#io of 8!3-a! Yo0 Idia Cos0"!$s.

R!#ai( S*ac! is o "o$! a cos#$ai# fo$ $o3#h.

Pa$#!$i a"o B$ads, $!#ai(!$s, f$achis!!s, i)!s#o$s ad "a((s.

Idia is o #h! $ada$ of


71/88

A #a$!#!d sa(!s #0$o)!$ of Rs , c$o$! S 2 'i((io 'y 21 3i#h

a *(a!d i)!s#"!# of Rs 6, c$o$! o)!$ #h! !:# fi)! y!a$s 7 #ha#Ns #h!

$!#ai( )isio of M0!sh A"'ai ad his RIL $!#ai( #!a". RILNs $!#ai( )!#0$! s!!"s

________________________________________________________________- /1 -


72/88

a(( s!# #o achi!)! #h! s#a#0s of '!i #h! f(a-'!a$!$ of Idia R!#ai( Ic, ad

#ha# #oo i $!co$d #i"!.

Th! R!(iac! R!#ai( !)isa!s a#io-3id! chais of hy*!$"a$!#s,s0*!$"a$!#s, disco0# s#o$!s, d!*a$#"!# s#o$!s, co)!i!c! s#o$!s ad

s*!cia(#y s#o$!s, i a'o0# D-odd ci#i!s ad #o3s ac$oss #h! (!#h ad '$!ad#h

of Idia. Th! RIL 'oa$d of di$!c#o$s a**$o)!d #h! ii#ia( *has! of #h! $!#ai( fo$ay a#

a !s#i"a#!d cos# of Rs 6,6= c$o$! S /= "i((io.

Th! !#i$! Idia $!#ai( s!c#o$ is !s#i"a#!d #o '! a# Rs 1=,

c$o$! S 266 'i((io 7 $o3i a# fi)! *!$ c!# a0a((y 7 ad #h! !s#i"a#!d

sha$! of o$ais!d $!#ai( is o(y Rs 6, c$o$! S D 'i((io, a# *$!s!#, a('!i#

$o3i a# o)!$ 6 *!$ c!# !)!$y y!a$.

Tha# "a!s R!(iac! R!#ai(Ns *$o*os!d i)!s#"!#s

!@0i)a(!# #o a'o0# 1 *!$ c!# of IdiaNs o$ais!d $!#ai( "a$!# 7 s0ch a (!)!( of

i)!s#"!# i #h! Idia $!#ai( a$!a has '!! 0*$!c!d!#!d i #h! co0#$yNs

"os# *$o"isi s0$is! id0s#$y 7 $!#ai(.

S#$o(y '!(i!)i i #h! Nfa$"-#o-fo$N "od!(, RIL #o*

'$ass "ad! a f!3 #$i*s #o )a$io0s s#a#!s (as# y!a$ #o 3o$ o0# a !:c(0si)!

co#$ac#-fa$"i *$o+!c# 3i#h #h! fa$"!$s 3h!$!'y R!(iac! R!#ai( 3i(( *0$chas!

f$!sh )!!#a'(! ad fa$" *$od0c! f$o" #h!s! s#a#!s ad #$as*o$# #h! sa"! #o i#s

3a$!ho0s!s, 3hich 3i(( s0's!@0!#(y #$as*o$# #h! sa"! #o #h! i#!$-co!c#!d

R!(iac! $!#ai( c!#$!s.

To s#$i! a !:a"*(!, *i!a**(!s #ha# a$! so(d a# a "!$! 2= *ais! a *i!c! i #h!

8o$#h-Eas# 3i(( '! *0$chas!d i '0( 'y R!(iac! R!#ai(, ad shi**!d #o #h! !#i$!

!#3o$ of R!#ai( s#o$!s a(( o)!$ #h! co0#$y. ha# #his a(so !s0$!s is #ha#

fa$"!$s ad $o3!$s !# a fai$ *$ic! fo$ #h!i$ *$od0c! ad #h! h0! cos# '!!fi#s

of 3ho(!sa(! *$oc0$!"!# !#s *ass!d o #o #h! !d-cos0"!$.

As *a$# of i#s 'ac3a$d i#!$a#io, #h! co"*ay has *(as #o s!#

0* a i#!$a#!d s0**(y chai if$as#$0c#0$!, ic(0di a co(d chai fo$ foods. I# is

'!(i!)!d #ha# RIL 3i(( f!!d #h! h0! $!#ai( chai #h$o0h s!)! (a$! 3ho(!sa(!

________________________________________________________________- /2 -


73/88

#!$"ia(s. I#s *(as ic(0d! o)!$ 1= 3a$!ho0s! c(0's o$ dis#$i'0#io c!#$!s,

ca#!$i #o #h! s0**(y ad $!@0i$!"!#s of i#s s*!cia(i#y s#o$!s, hy*!$"a$!#s,

________________________________________________________________- /6 -


74/88

s0*!$"a$!#s, d!*a$#"!# ad disco0# s#o$!s. %a$io0s "!dia $!*o$#s s0!s#

#ha# #h! co"*ay is ac#i)!(y sco0#i fo$ $!a( !s#a#! ac$oss Idia ad "ay !)!

hi$! (a$! "a((s fo$ i#s *0$*os!.

I #h! cos0"!$ d0$a'(!s s!c#o$, R!(iac! R!#ai( is $!*o$#!d #o ha)!

!#!$!d i#o a$!!"!#s ad co#$ac#s 3i#h #h! (!adi "a0fac#0$!$s #o *$oc0$!

"!$chadis! di$!c#(y f$o" #h!i$ fac#o$i!s. RILNs h0! 3a$!ho0si faci(i#i!s a$! #o

'! do##!d a(( o)!$ #h! co0#$y ad !:*!c#!d #o '! #h! h0', #h! !$)!-c!#$! fo$

#h! s0**(y 'as! #ha# 3i(( f!!d #h! !#3o$ of s#o$!s. Baa(o$!, fo$ is#ac!, is

(i!(y #o '! #h! 'as! fo$ R!(iac! R!#ai(Ns a**a$!( o*!$a#ios.

Th! "ai#0d! ad s#$a#!y of RILNs $!#ai( fo$ay is s0$! #o ha)! fa$

$!achi socia( ad !coo"ic i"*(ica#ios 'y di$!c#(y if(0!ci #h! (if!s#y(!s of

h0d$!ds of "i((ios of cos0"!$s, '!sid!s idi$!c#(y i"*ac#i #h! (i)!(ihood of

#!s of "i((ios. This idi$!c# i"*ac# 3i(( '! o #hos! !a!d i a 3id! $a! of

!coo"ic ac#i)i#i!s ic(0di fa$"i, cos0"!$ oods "a0fac#0$i, ad a

hos# of "y$iad o#h!$ s!$)ic!s #ha# '$i h0d$!ds of ca#!o$i!s of oods ad

s!$)ic!s f$o" #h! *$od0c!$s #o #h! fia( cos0"!$s.

________________________________________________________________- /9 -


75/88

.= Chai Cos0"!$ B!ha)io0$K

Th! $!#ai( s!c#o$ is 'oo"i ad i# is !@0a((y i"*o$#a# #o o3, ho3 #h!

cos0"!$ a3a$!!ss ad '!ha)io0$ #o3a$ds #h! cha! i $!#ai( s!c#o$, is a(sochai. Fo((o3i a$! so"! s#a#is#ics 3hich sho3 chai cos0"!$

'!ha)io0$ ad ha'i#s 3i#h $!s*!c# #o Food $!#ai(K

.=.1 Chai Ha'i#s P$!f!$!c!sK

Chan4in4 con$


76/88

.=.2 Ic$!asi 0a(i#y Coscio0s!ssK

K


77/88

.=.9 Cos0"!$?s *$!f!$!c! i '0yi 3i#h $!s*!c# #o #i"! cos0"!dK

Ti"! s*!,d o, '0yi,1 1$oc!$i!s

L!ss #i"!

D1P

Lo,!$ #i"!

1CP

.=.= F$o" #h! a'o)! dia$a"s 3! ca s!! #ha# #h! cos0"!$

*$!f!$!c!s a$! chai. Mos# of #h!" *$!f!$ '0yi f$o" #h! s0*!$"a$!#s fo$

#h! fo((o3i $!asosK

,.J

,-J

FJ@J

@FJ

,J

,J

GJ

,J

0J

GJ

0a(i#y

Ti"! sa)!$

Loca#io,

R!aso,a'(!

Hy1i!,!

Ho"! d!(i)!$y

P!$so,a( a##!,#io,

%a$i!#y

A"'i!,c!

4isco0,#s Esch!"!s

O#h!$s

________________________________________________________________- // -


78/88


79/88

.A$#ic(!s o $!c!# d!)!(o*"!#s i Idia R!#ai( S!c#o$K

Fo((o3i a$! so"! a$#ic(!s so0$c!d f$o" Th! Ecoo"ic Ti"!s ET& 3hich

hih(ih# ho3 #h! Idia $!#ai( s!c#o$ is 'oo"i 3i#h o**o$#0i#i!s fo$ #h!$!#ai(!$s as 3!(( as #h! cos0"!$s. A is# of !ach a$#ic(! is i)! '!(o3K

@+ RE'I!NCE3 P!NT!'OON JOST'E FOR SP!CE ET, /#hJ0!, &K

This a$#ic(! #a(s a'o0# #h! soa$i !s#a#! *$ic!s #ha# 3i(( aff!c# #h! $!#ai(

ia#s (i! R!(iac!, Pa#a(oos, !#c. ad #h! s#$a#!i!s #h!y a$! 0si #o co*!

3i#h i#. Pa#a(oos is i #a(s 3i#h i#!ch fo$ #i!70*. R!(iac! is !:*(o$i o*#ios

3i#h 4LF ad o#h!$ $!a( !s#a#! fi$"s. Th!s! #i!70* s#$a#!i!s 3i(( h!(* #o (!)!$a!d!)!(o*!$?s (ad 'as ad a)oid h0! i)!s#"!#s.

,+ SOURCE CODE; ('OB!' RET!I' BR!NDS !%E DESI(NS ON INDI!

ET, 19#hJ0!, &K

I#!$a#ioa( $!#ai( '$ads (i! a(-Ma$#,


80/88

ad #o3s. I# 3i(( a(soK

- Hi$! 1, *$of!ssioa(s.

- I)!s# Rs.1,c$ i R!(iac! $!#ai(, #o#a( i)!s#"!#s #o #o0ch

Rs.2=,c$ !)!#0a((y.

- E"*(oy =,, *!o*(! fo$ C0s#o"!$ S!$)ic!.

- S!# 0* #$aii is#i#0#!s i 1= ci#i!s.

O#h!$ $!(a#!d a$#ic(!sK a 8o3 Ro((iK Th! #$adi#ioa( i 7 s#o$! dis*(ay "a#!$ia( is a'o0# #o i)! 3ay #o a"0# of !3 a!

POP #oo(s. Rai f$o" (as!$ (ih#s #o s"o! sc$!!s, #o $o#a#i LC4 sc$!!s

#o !)! f(oo$ $a*hics. Th!s! POP #oo(s 3i(( if(0!c! #h '0y!$ '!ha)io0$

i""!s!(y ad !hac! POP.

.+ '!TE N(T SOPPIN( TO BE ! RE!'ITY SOONET, 2

#h

J0(y, &K

I# #a(s a'o0# #h! f0#0$! *(as of $!#ai(!$s i *$o)idi s!$)ic! #i(( (a#! ih#s.

M!#$os (i! M0"'ai, Hyd!$a'ad, Baa(o$!, Ch!ai, "ay soo a((o3 sho**i

"a((s ad $!#ai( chais #o o*!$a#! o0#(!#s #i(( 3!! h$s. This >(a#! ih# sho**i?

________________________________________________________________- D -


81/88

saa is i #a(s 'y (o''yis#s. R!#ai(!$s Associa#io of Idia is a(so #$yi #o

if(0!c! ad s0**o$#i #his 29 W / sho**i s!$)ic!.

________________________________________________________________- D1 -


82/88

0+ P!NT!'OON RET!I' TO TE!M UP *IT %IDEOCONET, 2dA00s#, &K

Pa#a(oo R!#ai( is +oii hads 3i#h %id!oco fo$ cos0"!$ d0$a'(!s #o

"!!# 0* #h! co"*!#i#io 3i#h R!(iac! R!#ai(. Pa#a(oo $!#ai( 3i(( '! so0$ci#h! co"*(!#! $a! of cos0"!$ d0$a'(!s f$o" Idia "a0fac#0$!$s ad $!#ai( a#

disco0# *$ic!s 0d!$ !:is#i '$ad a"!s >5o$yo? ad >S!s!i?.

1+ IOC NO* 'INES UP !'' IN / ! M!'' OFFERET, 2dA00s#, &K

P!#$o R!#ai( (!ad!$ is o3 *(ai #o (!)!$a! i#s "assi)! (ad 'a 3i#h

$!#ai( *(ay!$s #o '!i i#s o 7 f0!( $!#ai( '0si!ss. I a #3o *$o!d s#$a#!y, #h!

co"*ay *(as #o off!$ #h! 00s!d (ad 3i#hi #h! f0!( s#a#ios ac$oss #h!co0#$y as !@0i#y #o $!#ai( *(ay!$s #o s!# 0* "a((s. I# is a(so #$yi #o 3o$ o0#

d!a(s #o s!# 0* f0!( s#a#ios isid! "a(( co"*(!:!s. I# is i #a(s 3i#h Rah!+as,

Pa#a(oo, Asa(s ad 4LF #o fo$" #i!-0*s.

+ RE'I!NCE RET!I' SEE8S RE!'TY BITEET, 1#hA00s#, &K

This a$#ic(! #a(s a'o0# R!(iac! R!#ai(?s s#$a#!y o ac@0i$i (ad fo$ i#s

Rs.2=,c$ *$o+!c#. I# is !y!i a# ac@0i$i 1=" s@. f#. of $!#ai( s*ac!. I# is a(so*(ai #o ac@0i$! s*ac! fo$ $0$a( $!#ai( c!#$!s ad "a((s. I#s $!#ai( "od!( is

'as!d o >O3 #h! s*ac!? s#$a#!y is#!ad of #h! 0s0a( >L!as! 7 s*ac!? s#$0c#0$!.

Fo$ #h! sa"! i# is cos0(#i (o'a( *$o*!$#y cos0(#a#s (i! 5ih# F$a,

C0sh"a a!fi!(d, T$a""!( C$o3 M!h$a+, !#c.

________________________________________________________________- D2 -


83/88

@-" RECOMMEND!TIONS FOR INDI!N RET!I'

SECTOR

1.1 Po(icy R!co""!da#iosK

@+ Permit FDI in retail;

F4I has *(ay!d a !y $o(! i #h! $a*id d!)!(o*"!# of hih @0a(i#y $!#ai( i

s!)!$a( o#h!$ d!)!(o*i co0#$i!s. A((o3i (o'a( $!#ai(!$s #o i)!s# i #his s!c#o$

3o0(d a##$ac# '!s# *$ac#ic! *(ay!$s i#o Idia. S!)!$a( $!#ai(!$s s0ch as T!sco, Ma$s

S*!c!$ ad Toys NRN s ha)! a($!ady !)ic!d a i#!$!s# i '0i(di '0si!ss!s

h!$!.

Th! co0#!$ s#o$!s a$! (i!(y #o '! "os# #h$!a#!!d 'y #h! i#$od0c#io of F4I.

Th! s"a(( #$ad!$ (o''y has '!! )oca( o #h! iss0! of o# *!$"i##i F4I i#o $!#ai(,

ad has s0cc!ssf0((y !s0$!d #ha# *o(icy o #his f$o# is 0cha!d. Th! (o''y is

'as!d o #h! *$!"is! #ha# "od!$ $!#ai( 3i(( i"*ac# #h! (i)!(ihood of "i((ios of s"a((

fa"i(y-$0 $!#ai( '0si!ss!s.

Ho3!)!$, as 3! ha)! s!!, if '$oad-'as!d $!fo$"s a$! !:!c0#!d

3! a$! (i!(y #o s!! 'o#h !"*(oy"!# i $!#ai( ad $!#ai( s*!di ic$!as!.

,+Remo=e 2ottlenec$ in the $


84/88

Remo=e di$tri2$ more fle?i2le;

Th! o)!$"!# !!ds #o '! "o$! f(!:i'(! 3i#h ;oi (a3s ad !s0$!

#ha# 0sa! o$"s #a! i#o acco0# 'o#h d!"ad ad s0**(y 3i#ho0#

0*s!##i #h! 'a(ac!, 'o#h i 0$'a ad s0'0$'a a$!as.

Re$tr


85/88

Increa$e land $


86/88

Th! s#a#!(oca( o)!$"!# '0$!a0c$acy is a c$i#ica( s#a!ho(d!$ i $!#ai(.

S!)!$a( i"*o$#a# cha!s !!d!d i #h! $!#ai( !)i$o"!# i"*(y a (oss of *o3!$ fo$

o)!$"!# officia(s. Th!s! co"*$is! '!##!$ !fo$c!"!# of (a3s a"o s"a(( co0#!$

________________________________________________________________- D -


87/88

s#o$!s, si"*(ifica#io of (!is(a#io ad (oss of #a: $!)!0! f$o" sa(!s ad oc#$oi (!)i!s.

hi(! #h! (!is(a#i)! cha! "ih# '! !asi!$ #o ii#ia#!, a '!ha)io0$a( cha! 3i(( #a!

(o!$.

1.2 O#h!$ "!as0$!sK

Af#!$ (!adi #h! IT 'ad3ao, Idia is *ois!d #o $o3 as a R!#ai(

h0'. I# is i"*!$a#i)! #o s0s#ai #h! "od!$i;a#io of #h! $!#ai( s!c#o$ ad ca#!$ #o

#h! $o3i #as#! of #h! Idia cos0"!$ ad dis*!( #h! "y#h #ha# #h! a"! is

'i %s s"a(( o$ #$adi#ioa( %s "od!$ o$ o$ai;!d %s 0o$ai;!d o$ (oca( %s

fo$!i. ha# is !!d!d is #o *$o"o#! cos0"*#io 7 3hich 3i(( 0(#i"a#!(y (!ad #o

!coo"ic $o3#h of #h! co0#$y. Fo$ #h! Idia cos0"!$, #h! $ad0a( ad s#!*-

3is! !#$y of fo$!i co"*ai!s i $!#ai( i)o()!s #h$!! *i)o#a( cha!s 7 "od!$

#!cho(oy, '!##!$ #$as*a$!cy i d!a(is ad sha$i '!s# *$ac#ic!s. Today,

#h! @0!s#io is o# of 3h!#h!$ UIdia sho0(d o*! #o F4IV '0# o U3h! #o o*!V

ad Uho3 #o o*!V. F4I i R!#ai( ca '! (!)!$a!d fo$ ic$!"!#a( $!s0(#s i #h!

s!c#o$ 3i#h a Idia-s*!cific a**$oach !!*i #h! fo((o3i *oi#s i

cosid!$a#ioK

*$ad! !:is#i If$as#$0c#0$! ad s#i"0(a#! f0$#h!$ d!)!(o*"!#.

5!y ii#ia#i)!s #ha# #h!


88/88

@@" CONC'USION

Th!$!fo$!, f$o" a(( #h! ifo$"a#io i# is !)id!# ho3 #h! Idia R!#ai( s!c#o$

is 'oo"i 3i#h o**o$#0i#i!s. This 3i(( o# o(y $!s0(# i h0! *$ofi#s 'y #h!

$!#ai(!$s '0# a(so '!!fi# #h! cos0"!$s 'y *$o)idi '!s# @0a(i#y oods a#

$!asoa'(! *$ic!s.

This 3i(( !hac! #h! s#ada$d of (i)i of Idia cos0"!$s ad 0(#i"a#!(y

(!ad #o o)!$a(( !coo"ic d!)!(o*"!#.

Th! o)!$"!#?s ii#ia#i)! #o !co0$a! #h! Idia $!#ai(!$s is#!ad of

Fo$!i $!#ai(!$s 3i(( $!s0(# i a"*(! a"o0# of !"*(oy"!# o**o$#0i#i!s ad

idi$!c#(y *$o)idi s0**o$# #o "ay +o'(!ss *!o*(! #h$o0ho0# #h! co0#$y i.!. i

0$'a as 3!(( as $0$a( a$!as.

To coc(0d!, #his 'oo" i #h! Idia $!#ai( s!c#o$ 3i(( (!ad #o a o)!$a((

!coo"ic ad socia( d!)!(o*"!# of #h! co0#$y ad "ai i# a (o'a((y

co"*!#i#i)! a#io.

So, as #h!y say, (!# #h! ac#io '!iX

Indian Retail Sector and the Impact of FDI

Documents

Transcript of Indian Retail Sector and the Impact of FDI