March 16, 2013: After Indian Government opened up FDI in single brand retail; it has approved 63 proposals so far. This was stated by Union Commerce Minister, Anand Sharma on the sidelines of an interaction with the scientists of Central Manufacturing Technology Institute. He further added that these proposals would bring in billions of dollars. One of the major proposals cleared by the government is that of Swedish Furniture Giant IKEA. One of the major conditions for FDI in single brand retail put forward by the government is to source a part of their goods from India itself. IKEA who got their proposal cleared is said to be sourcing close to USD one billion from India.
The major proposals which the government had received for FDI in single brand retail are British supermarket chains Sainsburry and Tesco. They have given proposals for opening sourcing centres in India. The single brand retailers are putting up proposals mainly to start sourcing centres in India for the front end business; these retailers are following a wait and watch policy. Mr. Anand Sharma added that “most of the single brand retailers have sourcing base in the country and this will increase manifold. For the front end, of course, these are business decisions. Once we receive the applications, they will get processed”.
With many major players showing interest in the Indian Retail Market and government hopeful of revival in the economy this fiscal, it is sure that the Indian Retail Market is going to see some major developments in the coming days. It would be days of new launches, consolidations and mergers and acquisition. Who enters, who vanishes and who sustains this would be the questions in everybody’s mind.
