For Retail
First n foremost expected positive outcome will be it will give huge boost in foreign investment. Few experts from industry believe single brand retailing can contribute half a percent of total FDI in next 5 years. Big Brands like Addidas, Nike, Louis Vuitton and Gucci IKEA, M&S and few other foreign retail giants seem to be among definite starters as they already have significant sourcing from in-country suppliers. Many more luxury brands are expected to sneak in with big plans. It may generate lot of investment and job opportunities. Despite of all positive sentiments many believes there are certain regulations that will never allow to achive such big results that are expected. One clause says that these big giants have to procure 30% of their raw material from Indian SMEs.
First n foremost expected positive outcome will be it will give huge boost in foreign investment. Few experts from industry believe single brand retailing can contribute half a percent of total FDI in next 5 years. Big Brands like Addidas, Nike, Louis Vuitton and Gucci IKEA, M&S and few other foreign retail giants seem to be among definite starters as they already have significant sourcing from in-country suppliers. Many more luxury brands are expected to sneak in with big plans. It may generate lot of investment and job opportunities. Despite of all positive sentiments many believes there are certain regulations that will never allow to achive such big results that are expected. One clause says that these big giants have to procure 30% of their raw material from Indian SMEs. Decision taken in interest of Indian SMEs and small entrepreneurs but are Indian SMEs are fully ready for the same is gonna be big ask? Or these big giants will prefer this step also a consideration.
For eRetail
In 2011 alone, investors poured $350 million (Rs 1750 Cr apprx.) into 57 internet startups - that's more than the collective dotcom investment of the past four years, according to VCCEdge, an Indian online deal platform. Some $3 billion worth of e-commerce was transacted in 2011, says IAMAI. And, according to Helion Venture Partners, $20 billion worth of e-commerce will be done in five to seven years, with 12-15% of shopping going online in this period. Till date, however, the Indian Railways website for booking tickets is easily the most successful e-commerce model. Launched in 2002, irctc.co.in sold just 27 tickets online on its first day. Today, it sells 4 lakh. According to Verisign, an internet registry, about 2.6 million dotcom and 'dotin' companies are registered out of India. Along with this Indian internet users no is going to 30 Million by 2015. Certainly with 30% year on year growth rate eRetail seems to be most promising. If retailers get investment and out of that 10-15% get diverted to online retail, surely there will be boost in growth.
All in all it’s a big positive step for retail. There are certain clause to be amended smartly. It also indicate that soon multi-brand retail will get 100% FDI as well. Which surly will open doors for even bigger success in Indian retail and agrarian practitioners.
-Nikhil Kunwar
-Nikhil Kunwar
