As it can be found that there are certain
The size of organized retail in the country
aspects of the FDI proposal that have allowed
was $20 billion in the year 2010. In the year
the matter to escalate over a period of time.
2011, it was reported that while the overall retail
Empowering the states in the said matter has
market was valued at $ 4450 billion, organized
created a great political divide where each
retail was about 6% of the value. Analysts further
regional or national party is leveraging the matter
observe that by 2015, value of the overall retail
for their own political mileage. Those states that
industry will reach $ 720 billion with the share of
are presently in favor of the FDI proposal are
organized retail expected to reach 9%-10%. It
Delhi, Assam, Maharashtra, Andhra Pradesh,
is reported that till date FDI in single brand retail
Rajasthan, Odisha, Uttarakhand, Haryana,
has been received to the tune of $ 45 million. If
Manipur, Daman & Diu, Dadra & Nagar Haveli
we take a closer look at share of various product
while states like West Bengal, Bihar, Karnataka,
categories in the retail market, we find that
Kerala, Madhya Pradesh and Tripura are against
'clothing' as a category leads followed by
the proposal. The state of Jammu & Kashmir
'durables' and 'foods & beverages'. It is further
has reportedly been found to endorse the policy
believed that the true potential of the Indian retail
but then they haven't given their assent in writing.
industry can be reached by going for enhanced
[Exhibit-I.I] highlights the stand of various major
FDI in the retail sector [Exhibit-I.II (a) and (b)].
political figures as far as enhanced FDI in multibrand retailing is concerned.
Exhibit-I.I
The
Economic Challenger
No
15
Issue
58
January-March
2013
FDI IN RETAIL
5