Changing Retail Environment in India - Impact of Government Policy on Organized and Unorganized Retail Sector

Abstract

India has emerged as the fifth attractive retail destination attracting global retailers for entry and expansion plans (Global retail expansion by A.T. Kearney, 2012). Indian retail market is worth USD 396 Billion in 2012 and estimated to grow by 12% by 2015. Government of India has allowed 51% in multi brand retailing (Minimum investment of USD 100 million) and 100% in single brand retailing. The matter of contention was whether the new FDI policy will replace the existing small scale retail players and Kirana stores. But when we analyse the scale of operations, functional expenses, man power requirement and inventory to be maintained the threat of global retailers to Kirana stores are minimal. The article focuses on the Indian unorganized retailing and organized retailing in the context of changing government policy for the retail sector.