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India’s retail sector has long been firmly underpinned by strong demographic fundamentals including rising population, rapid urbanization
and an emerging middle-income group. There is no doubt that over the last few years the Indian retail sector has been expanding
rapidly and its importance in the macro economic landscape of the country has been accepted by all. The pace of transformation and
growth witnessed in the sector has been phenomenal and the series of steps proactively undertaken during the last few years both by the
government and the industry has been very impressive. The India retail growth story is quite firm as substantiated by a study by Deloitte
according to which the Indian retail industry has experienced growth of 10.6% between 2010 and 2012 and is expected to increase to
USD 750-850 billion by 2015.
Liberalization of the FDI policy in the multi-brand retail trade would further provide impetus to the sector also opening the door of opportunities
for the International brands. Also, if the guiding principles of the FDI policy are strategically introduced, it would not only create a
synergetic relationship between the small Indian retailers and the larger global retail chains but at the same time benefit the consumers.
It can be said that liberalization of FDI would usher in quality and discipline in the Indian retail sector besides giving consumers a
wider choice and options.
It is pertinent to understand the key highlights of the FDI policy in order to comprehend the opportunities and the challenges that have
shaped up due to its liberalization.
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01 January 2012