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Though the government's main concern is
that the entry of big players could result in the
displacement of local kirana store owners and shopkeepers
(estimated to be 40 million),3
some proponents point to the other side of the coin.
Assocham, a leading industry association in the country, in
a study conducted on "Job Opportunities in Emerging Sectors"
had identified retail as among the fastest growing sectors,
which after software and ITeS, has the potential to offer
maximum job opportunities in the coming years. Some foreign
players have also cautioned against the hype in the Indian
retail sector. At a summit in London, Tesco criticized the
hype being created by some of the foreign retailers on the
opportunities in the Indian retail market and it remarked
that retail business in India would become only viable to
the foreign players if the ban on foreign ownership was
removed.4 |
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But, the government has shown little signs of easing the
restrictions on FDI in retail in face of mounting opposition from the Left
parties and shopkeepers. However, many industry experts continue to remain
optimistic of a change in the government's policy. Deepankar Sanwalka,
Executive Director and Head - Consumer Markets, KPMG India, said, "Companies
expect that the next cycle of change in Indian consumer markets will be the
arrival of foreign players in consumer retailing. Although FDI remains
highly restricted in retailing, most companies believe that will not be for
long."5
ADDITIONAL READINGS AND REFERENCES
1. "The Detail in Retail," www.blonet.com, December 09, 2004.
2. "The Retail Industry," www.ibef.org, April 09, 2007.
3. "Meet India's Retail King," www.rediff.com/money, January 5, 2005.
4. "Retail: The next big thing," www.bolnet.com, October 13, 2005.
5. "Indian Retail Policy Attacked," www.ft.com, June14, 2007.
6. "Indian Retail: An Overview," www.network magazineindia.com, March, 2007.
7. "India Hot Destination for Retail," www.timesof India.com, June 22, 2007.
8. "India's Retail Runaround," www.forbes.com, June 02, 2007.
9. "The 2007 Global Retail Development Index," http://www.atkearney.com,
2007.
10. "Carrefour defers plans to enter India, "www.blonet.com, March 24, 2004
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