   

Facebook 27,853 Twitter 22,140 Youtube 2,359 RSS

CAP en Español

      o o o o o o o o o o o o o o o o o o o o o o o o o o  

TRENDING:

Housing Back to School Reproductive Rights Middle Class

ISSUES
China Civil Liberties Economy Education Energy and Environment Federal Budget Gay and Transgender Health Care Higher Education Housing Immigration Labor and Work Media Military NATIONAL SECURITY Open Government Poverty Progressive Movement Public Opinion Race and Ethnicity Regulation and Markets Religion and Values Tax Reform Technology and Science Terrorism Women's Rights

PROJECTS EXPERTS

   

EVENTS REPORTS ABOUT US DONATE
Issues » National Security

Understanding the Historical Conflicts Behind Today’s Violence in Assam

SOURCE: AP/Tsering Topgyal

An Indian supporter holds a placard during a protest against what they say is illegal migration of Muslims from Bangladesh to the northeastern Indian state of Assam. The conflict in the state could get worse as the effects of climate change become more drastic. By Arpita Bhattacharyya | August 29, 2012
PRINT:

SHARE:

Download the report: PDF

Endnotes and citations are available in the pdf version of this issue brief. Recent violence between the Bodo tribe and immigrant minorities in the northeastern Indian state of Assam has cost the lives of at least 96 people and caused more than 300,000 residents to flee their homes for refugee camps. The violence also led to mass panic among northeastern migrants across India, when text messages and videos circulated social media sites warning of attacks on northeastern migrants in southern Indian cities such as Bangalore and Pune in retaliation for the deaths of Muslim minorities in Assam. The violence and resulting panic revealed a fragile peace in Assam and demonstrated the speed with which historical tensions can bubble over into larger confrontations that could roil the whole country. A lot of this tension could worsen with the confluence of climate change, migration patterns, and community security in Assam and India—a confluence that the Center for American Progress is examining in a series of papers and events on climate change, migration, and security. Before looking at those patterns in Assam, let’s first take a look back at Assam’s history to better understand today’s conflicts.

Assam’s troubled past
Assam is located in the northeastern part of India and shares a border with China, Myanmar, Nepal, Bhutan, and Bangladesh. This underdeveloped region, which is connected to India politically by a small land bridge, is also known as the “Seven Sisters” and includes the states Assam, Arunachal Pradesh, Nagaland, Manipur, Meghalaya, Tripura, and Mizoram. The surrounding countries’ cultures have influenced Assam, creating a patchwork of ethnic, religious, and linguistic traditions that distinguish the Seven Sisters from the rest of India. The Bodos are one of the main indigenous tribes located in the western region of Assam. In the 2001 Census the Bodos made up around 5 percent of Assam’s entire population.

The Bodo insurgents have been fighting for years for statehood in India.000 villages. In 2003 they were granted special status through the creation of the Bodoland Territorial Autonomous Districts in exchange for ceasing their insurgency. Though the Bodos govern the districts. . and 200. more than 100 injuries. however. view the accusation of illegal Muslim Bangladeshi settlement as a false campaign to restrict their rights and drive Muslims from the area. Muslim communities. The total area of Bodoland is about 8. Muslims are the second-largest group in the region.970 square kilometers—roughly the size of Cyprus—and includes more than 3. The most recent incident before the current violence was in 2008. The main issue between the two groups is land.000 people escaping to refugee camps. with Bodos claiming that undocumented Muslim immigrants from Bangladesh are taking land rightfully owned by Bodos. when fighting between the two groups resulted in 55 deaths. and tourism. The remainder of the residents belong to other indigenous tribal groups or are native Assamese. and tensions have long simmered between Bodos and Muslim residents over land-ownership rights. The status allows the Bodoland Territorial Council to legislate on communal-level issues such as agriculture. the tribe only makes up one-third of the overall population therein. education.

The issue of illegal Bangladeshi immigration has therefore been a prominent political and social issue in Assam since the partition of India but has more acutely impacted local and regional politics in the past four decades. with estimates of 2. while nongovernment reports put the death toll at around 7. Official government reports indicate that more than 4. present-day Bangladesh was East Pakistan until 1971. Instead. Then on February 18. 1983.600 bridges in attempts to prevent election officials from reaching constituencies. and those who moved after the war. fighting broke out in the district of Nellie between villagers and those seen as illegal immigrants. This makes it difficult to determine who is a Bengalispeaking Muslim long-term resident versus an illegal Bangladeshi immigrant. the Indian central government went ahead with elections. The Congress Party in Assam is part of the greater Indian National Congress Party. bringing . The massive death toll led to wide condemnation of the massacre and helped catapult the then-opposition Congress Party back into power in the state government of Assam. The campaign led to violence across the states. including the illegal Bangladeshi immigrants whom the Bodos distinguish. 10 million East Pakistanis (including many Bengali-speaking Muslims) fled to India. Before 1947 India and Bangladesh were unified and ruled as British India—thus the issue of illegal immigration did not exist.000 people died during the lead up to the election. Given this history.000 people—mostly Muslims—losing their lives. The violence also led to the burning of more than 1. During that war. The violence peaked in the early ‘80s. those who moved during the 1971 war as refugees. demanding that all illegal immigrants or so-called infiltrators be deleted from electoral rolls and deported immediately. Bengali-speaking Muslims settled in the area long before the British Partition created the state of Bangladesh in 1947. it is difficult to distinguish between Bengali-speaking Muslims in Assam who lived in the area before the Partition. The All Assam Students’ Union mobilized against the election in 1983. merged with the National Congress Party in those years. inciting further conflict. when East Pakistan fought for independence from West Pakistan.000. who they believed were changing their state’s demographics and gaining political influence. The Muslim League. a group active during independence and Partition.Moreover. with Bengali-speaking Muslims indiscriminately targeted as illegal Bangladeshis. The National Congress Party was founded in 1885 and was a key player in the Indian movement for independence from Great Britain. In 1979 a group called the All Assam Students’ Union began a campaign against illegal Bangladeshi immigrants in Assam. The All Assam Students’ Union’s main demand was that the names of illegal immigrants be taken off of the electoral rolls before the next election. after four years of the government refusing to meet the union’s demands. Following independence from Britain. The party has also formed the central Indian government for most time periods since independence.

 Today’s violence in Assam The current situation in Assam between the Bodo tribe and immigrant minorities in the northeast started at the end of May. Immigrants who arrived after 1971 will be identified. The conditions in the refugee camps are dire. . a local Muslim youth group—the All Bodoland Minority Students’ Union—called for the shutdown of the Kokrajhar district. forcing more than 400. fall under the Foreigners Act (Indian national law). while at another site more than 6. 1971. and will not be able to vote until 10 years after their registration.with it the Muslim voting bloc. Fighting spread to neighboring Dhubri district. removed from voting rolls. and Abdul Siddique Sheikh of the Muslim minority group.  Immigrants who arrived between January 1966 and March 25. with hundreds of homes torched. The signing of the Assam Accord ultimately ended the All Assam Students’ Union movement but the tension surrounding the issue of immigration lingers on. The Congress Party held power in Assam for the first two decades after independence and did not highlight the issue of illegal immigration in the way the All Assam Students’ Union thought necessary.500 people have crammed into a high school. and deported. are recognized as citizens. Two weeks later two men killed Mohibul Islam.300 people. must register themselves in district offices. Two years of talks amid lingering conflict eventually led to the Assam Accord in 1985. The ensuing confrontations between the Student’s Union and the police led to more than a dozen injuries. Implementation of the accord has been contentious. The Assam Accord laid out the following provisions to deal with the immigrant issue:  Immigrants who arrived before January 1. when a signboard was allegedly removed from a mosque by the Bodoland Territorial Council because it claimed that the mosque was illegally occupying forest land. the All Assam Minority Students’ Union. In protest. Tensions rose between the Bodo and Muslim communities in Kokrajhar. This confrontation was followed by the death of four Bodo youths. The New York Times reports that one camp has only 10 makeshift toilets for 4. 1966. allegedly killed in a Muslimdominated area in Kokrajhar. and outbreaks of violence over migration have continued on a small scale since 2003 and have escalated into the violence that is taking place presently. to counter the Congress Party in Assam. and on July 6 four people shot one Muslim man and injured four others. The forced 1983 elections and the contentious results led the All Assam Students’ Union and likeminded groups to form a new political party. the founder and president of the All Bodoland Minority Students’ Union. but the Bodoland Territorial Council prevented the shutdown.000 people to flee to relief camps in the area. the Asom Gana Parashid.

in Mumbai Muslim groups held a rally to protest the violence against Muslims in Assam and the attacks on the Muslim Rohingyas in Myanmar that have been happening since June. and videos had their origin in Pakistan. The BBC reports that India has offered to share the evidence with Pakistan that “the bulk of these messages. This outcome was impossible to predict. and drought. No accurate statistics or studies exist to understand the exact demographic and historical breakdown of the Bodoland territory. even small shifts in crossborder migration have the potential to incite conflict and exacerbate existing tensions. leaving one man dead and injuring five others. and security will soon release a report detailing how changing environmental conditions and migratory patterns could contribute to existing tensions in Assam and Bangladesh. Twitter. As became obvious this summer. fear. Considering climate change The current conflict reveals the underlying tensions stirring in the world’s largest democracy— stresses that are unlikely to disappear anytime soon. creating mass havoc and killing dozens. Meanwhile. rather than warn of any real security threat—blocked 250 web sites and social networking sites. The paper will show how climate change and environmental degradation have the potential to displace large groups of people in both India and Bangladesh due to floods. migration. or whether the Indian Bengalispeaking Muslim population is simply growing. hundreds are still living in relief camps. but the problem is real. and fundamentalist Pakistani websites. The exact impacts of this displacement on international migration across India and Bangladesh’s 4. . taking over Bodo lands. Yet public perceptions.095-mile border are not easy to quantify. leading to a mass exodus from Bangalore and Chennai.” specifically with the names of organizations in Pakistan. Meanwhile. pictures. the Center for American Progress’s project on climate. rumors of Muslim attacks on northeastern labor immigrants in southern Indian cities began circulating via social media sites and text messages. and mass communication through social media uprooted an entire Indian state. It is difficult to determine whether illegal Bangladesh immigrants are. The Indian central government—asserting that the messages and videos were designed to cause panic and sow fear among northeastern residents. sea-level rise.Then during the week of August 13. The rally escalated into a riot and left two dead and many injured. Contributing to this effort. increasing variations in rainfall. including Facebook. in fact. and also banned text messages sent to more than five people for two weeks. Google. YouTube. Fresh violence ensued earlier this week in Kokrajhar. but it will be important to understand the stresses that could lead to future misperceptions and panic.

by Matthew Duss Outlining a Diplomatic Strategy for Afghanistan’s Political Transition.org Web: Andrea Peterson 202. The different dimensions of complex crisis scenarios. and development policies.6258 or lpereyra@americanprogress.org Subscribe to National Security News Alerts subscribe Follow National Security Stories Subscribe to the National Security RSS feed Related Materials     Iran's Direct Involvement in Syria Shouldn't Sway U. the mere perception that there might be an increase in the number of migrants could contribute to instability in the region.6285 or kpeters1@americanprogress.org Radio: Anne Shoup 202. including religious and social factors.7146 or ashoup@americanprogress. and health care) 202. Policy in Syria Enters a New Phase.org TV: Lindsay Hamilton 202.2675 or lhamilton@americanprogress. by Jed Ober and Brian Katulis U. diplomacy.741.8181 or cdipasquale@americanprogress.741.org Print: Laura Pereyra (ethnic media. by Brian Katulis .S. and security with which the world must grapple in the 21st century.Moreover. South Asia will be one of the most climate vulnerable regions in the world and. will have to be considered in planning for disaster relief and temporary resettlement in the face of more frequent storms and floods so as to avoid inciting or exacerbating conflicts. defense. Arpita Bhattacharyya is Research Assistant to Distinguished Senior Fellow Carol Browner at the Center for American Progress. understanding the long-term trends shaping the region will be crucial for U. migration. Strategy An Opportunity to Press Iran on Human Rights .481.S.481.481.org Print: Christina DiPasquale (foreign policy and security. please contact: Print: Katie Peters (economy. To speak with our experts on this topic. Assam’s troubled history with migration serves as a case study for the complex intersection of climate change. education.483. energy) 202.S. immigration) 202. as the United States pivots its interest toward Asia.8119 or apeterson@americanprogress.

August 18. May 7. 2012 Big Oil’s Smoggy Notions Proved False (Again... 2011 Issues China Civil Liberties Economy Education Energy and Environment Federal Budget Gay and Transgender Health Care Higher Education Housing Immigration Labor and Work Media Military National Security Open Government Poverty Progressive Movement Public Opinion Race and Ethnicity Regulation and Markets Religion and Values Tax Reform Technology and Science Terrorism Women's Rights Projects American Idea Conference American Worker Project California Office Climate Migration Security Doing What Works Faith and Progressive Policy Just Jobs Leadership Institute Legal Progress Middle East Progress Our Working Nation Progress 2050 Progressive Studies Program Reel Progress . by Ken Sofer Also by Arpita Bhattacharyya                                            Panetta: ‘Climate Change Has a Dramatic Impact on National Security’. Next Steps in Syria. March 7.). 2012 Internationalizing Women’s Rights and Empowerment.

                   Sustainable Security Connect with CAP Contact Us RSS Twitter Facebook YouTube Tumblr Newsletters Donate Press Press Room Logos Press Inquiries & Booking General Inquiries About Us About CAP Staff & Fellows Events Reports Jobs Internships     Privacy Policy Reuse Policy Terms of Use State Notices © 2012 Center for American Progress .

help Wikipedia and win! Retailing in India From Wikipedia.Wiki Loves Monuments: Photograph a monument. India . the free encyclopedia A textile retail store in India A fish retail store in West Bengal.

.[6] In January 2012. India Retailing in India is one of the pillars of its economy and accounts for 14 to 15 percent of its GDP.[5] The announcement sparked intense activism. This decision has been welcomed by economists and the markets. India is one of the fastest growing retail market in the world. subject to approvals by individual states. with 1. as well single brand majors such as IKEA. but imposed the requirement that the single brand retailer source 30 percent of its goods from India. IKEA announced it has applied for permission to invest $1. larger format convenience stores and supermarkets accounted for about 4 percent of the industry. [1][2] The Indian retail market is estimated to be US$ 450 billion and one of the top five retail markets in the world by economic value.9 billion in India and set up 25 retail stores. both in opposition and in support of the reforms. the government of India announced the opening of FDI in multi brand retail. India's retail and logistics industry employs about 40 million Indians (3. [10]. Nike. India approved reforms for single-brand stores welcoming anyone in the world to innovate in Indian retail market with 100% ownership. Even singlebrand retail was limited to 51% ownership and a bureaucratic process.[8][9] On 14 September 2012. India's central government announced retail reforms for both multi-brand stores and singlebrand stores. convenience stores or any retail outlets. and these were present only in large urban centers. In November 2011. These market reforms paved the way for retail innovation and competition with multi-brand retailers such as Walmart. In December 2011. Indian government continues the hold on retail reforms for multi-brand stores. USA and Japan from opening stores and creating associated jobs in India. forbidding foreign groups from any ownership in supermarkets.[7] In June 2012. Until 2011. and Apple. however has caused a massive upheaval in India's delicate governance structure.A food staple retail shop in Pushkar.3% of Indian population). under pressure from the opposition. In 2010. [3][4] India's retailing industry is essentially owner manned small shops. Indian government placed the retail reforms on hold till it reaches a consensus.2 billion people. Carrefour and Tesco. Fitch believes that the 30 percent requirement is likely to significantly delay if not prevent most single brand majors from Europe. Indian central government denied foreign direct investment (FDI) in multi-brand retail.

refers to the traditional formats of low-cost retailing. income tax.2 Single-brand retail reforms approved 8 Social impact and controversy with retail reforms o o o 8. paan/beedi shops.3 Chief Ministers of Indian states 8. etc. on the other hand.2 Opposition to retail reforms 8.3 Support for retail reforms        9 See also 8. Unorganised retailing. convenience stores. those who are registered for sales tax. These include the publicly traded supermarkets. that is.3.1 Controversy over Indian retail reforms 8. the local mom and pop store. in India.Contents [hide]    1 Local terms 2 Background 3 Growth o o     3. and also the privately owned large retail businesses.1 Indian retail reforms on hold 7.3. refers to trading activities undertaken by licensed retailers.[11] .3.1 Farmer groups 8.2 Growth after 2011 4 The Indian Retail Market 5 Major Indian Retailers 6 Challenges 7 India retail reforms o o  7.1 Growth over 1997-2010 3. hand cart and pavement vendors. etc. owner manned general stores.2 Economists and entrepreneurs 8. corporatebacked hypermarkets and retail chains.3. for example.4 Current supermarkets 10 External links 11 References [edit]Local terms Organised retailing.

employs about 40 million Indians (3. India on a sunny day. Vast majority of the unorganized retail shops in India employ family members. Most Indian shopping takes place in open markets or millions of small. vendors experience more produce spoilage. Access to the shelf or product storage area is limited. Price is sometimes negotiated between the shopper and shopkeeper. organized and unorganized in combination. . Once the shopper requests the food staple or household product they are looking for. During monsoons. do not have the scale to procure or transport products at high volume wholesale level. with all sales being final. Finally.3% of Indian population). brings it out and offers it for sale to the shopper. although some products do have a manufactured suggested retail price (MSRP) pre-printed on the packaging. the shopkeeper goes to the container or shelf or to the back of the store. India has about 11 shop outlets for every 1000 people. The shoppers do not have time to examine the product label. claiming that it is similar or equivalent to the product the consumer is asking for. The unorganized retail shops source their products from a chain of middlemen who mark up the product as it moves from farmer or producer to the consumer.[5] [edit]Background A vegetable retail market in Kerala. The product typically has no price label in these small retail shops. and two consumers may pay different prices for the same product on the same day. have limited to no quality control or fake-versus-authentic product screening technology and have no training on safe and hygienic storage. Often the shopkeeper may substitute the product. packaging or logistics. and can not pick or examine a product from the shelf. most transactions at unorganized retail shops are done with cash. ask for what they want. The unorganized retail shops typically offer no after-sales support or service. The shopkeeper prices the food staple and household products arbitrarily. India's retail and logistics industry. Supermarkets and similar organized retail accounted for just 4% of the market.Organised retailing was absent in most rural and small towns of India in 2010. Over 14 million outlets operate in the country and only 4% of them being larger than 500 sq ft (46 m2) in size.[12] The typical Indian retail shops are very small. independent grocery and retail shops. Shoppers typically stand outside the retail shop. and do not have a choice to make an informed decision between competitive products.

[edit]Growth An organized retail store in Ahmedabad (ca. from states. Some retails faced complying with over thirty regulations such as "signboard licences" and "anti-hoarding measures" before they could open doors. There are taxes for moving goods to states. regulations prevented innovation and entrepreneurship in Indian retailing. Between . and even within states in some cases. it required government approval. Farmers and producers had to go through middlemen monopolies. with losses exceeding 30 percent. and automatic permission was granted in 2006. Between 2000 to 2010. choice. The logistics and infrastructure was very poor. The approval requirement was relaxed. consumers in select Indian cities have gradually begun to experience the quality. 2009) Customers inside a retail store in Kolkata (ca. Through the 1990s. including some related to retail.Until the 1990s. Then. convenience and benefits of organized retail industry. India introduced widespread free market reforms. 2011) [edit]Growth over 1997-2010 India in 1997 allowed foreign direct investment (FDI) in cash and carry wholesale.

and grossly inadequate during peak harvest seasons. For example. China in contrast allows 100% ownership by foreign companies in both single brand and multi-brand retail presence.[13] Single brand retailing attracted 94 proposals between 2006 and 2010. However. representing a very small 1..[15][16] . The remaining infrastructure capacity is less than 1% of the annual farm output of India. because of very limited integrated cold-chain and other infrastructure. Small Indian farmers realize only 1/3rd of the total price paid by the final Indian consumer. of which 57 were approved and implemented. on average.6 million metric tons. In the absence of organized retail competition and with a ban on foreign direct investment in multi-brand retailers.2 billion people. then urged the Indian parliament to extend economic reforms by freeing up of the retail sector.2000 to 2010. Until 2010. every year. Jagdish Bhagwati. Such reforms Professor Bhagwati argued will accelerate economic growth and make a sustainable difference in the life of India's poorest. India has only 5386 stand-alone cold storages. Indian retail has experienced limited growth. and the retail industry in India must be opened to competition. There has been no interest in foreign direct investment in cold storage infrastructure build out. Experts claim that cold storage infrastructure will become economically viable only when there is strong and contractually binding demand from organized retail. in an invited address to the Indian parliament in December 2010.[13] Indian laws already allow foreign direct investment in cold-chain infrastructure to the extent of 100 percent. puts the economic viability of expensive cold storage in doubt. Indian retail attracted about $1. This leads to about 30% losses in certain perishable agricultural output in India.[14]Numerous economists repeatedly recommended to the Government of India that legal restrictions on organized retail must be removed. norms are flouted and pricing lacks transparency. For a country of 1. The risk of cold storing perishable food. Some claim one of the primary restraint inhibiting better participation was that India required single brand retailers to limit their ownership in Indian outlets to 51%.[13] The 60%+ margins for middlemen and traditional retail shops have limited growth and prevented innovation in Indian retail industry.8 billion in foreign direct investment. Professor of Economics and Law at the Columbia University analysed the relationship between growth and poverty reduction. and introducing labor market reforms. foreign direct investments are unlikely to begin in cold storage and farm logistics infrastructure. Due to a number of intermediaries involved in the traditional Indian retail chain. this is a very small number. without an assured way to move and sell it. intermediaries and middlemen in India have dominated the value chain. and its spoilage of food harvest is amongst the highest in the world. further liberalisation of trade in all sectors. as against 2/3rd by farmers in nations with a higher share of organized retail. having a total capacity of 23. 80 percent of this storage is used only for potatoes. India has had years of debate and discussions on the risks and prudence of allowing innovation and competition within its retail industry.5% of total investment flow into India.

In 2011. expanding by about $400 billion by 2020. It is a huge industry in terms of size and according to India Brand Equity Foundation (IBEF).96 billion. food accounted for 70% of Indian retail... maintaining its position as the most attractive market for retail investment.T. A. The Indian economy has registered a growth of 8% for 2007. Others believe the growth of Indian retail industry will take time. 300 malls are estimated to be operational in the country.[18] The enormous growth of the retail industry has created a huge demand for real estate. The opening of retail industry to free market competition. Organised retail is expected to garner about 16-18 percent of the total retail market (US $ 65-75 billion) in the next 5 years. Property developers are creating retail real estate at an aggressive pace and by 2010.A 2007 report noted that an increasing number of people in India are turning to the services sector for employment due to the relative low compensation offered by the traditional agriculture and manufacturing sectors. because of unorganized retail.[20][21][22] One report estimates the 2011 Indian retail market as generating sales of about $470 billion a year. is estimated to be over $250 billion a year: a revenue equal to the 2009 revenue share from Japan for the world's 250 largest retailers. The predictions for 2008 is 7. it is valued at about US$ 395. India had prevented innovation and organized competition in its consumer retail industry.[17] The Retail Business in India is currently at the point of inflection. given the expected growth of Indian retail industry through 2021.[19] [edit]Growth after 2011 Before 2011. with organized retail possibly needing a decade to grow to a 25% share. Several studies claim that the lack of infrastructure and competitive retail industry is a key cause of India's persistently high inflation. in a nation where malnutrition remains a serious problem.[25] The projected increase alone is equivalent to the current retail market size of France. As of 2008.. Furthermore. while the home supplies .9%.T. chain stores with centralized operations and shops in malls. rapid change with investments to the tune of US $ 25 billion were being planned by several Indian and multinational companies in the next 5 years. some claim will enable rapid growth in retail sector of Indian economy. Well over 30% of food staples and perishable goods produced in India spoils because poor infrastructure and small retail outlets prevent hygienic storage and movement of the goods from the farmer to the consumer.[23][24] The Economist forecasts that Indian retail will nearly double in economic value. The organized retail market is growing at 35 percent annually while growth of unorganized retail sector is pegged at 6 percent. India has topped the A. Kearney’s annual Global Retail Development Index (GRDI) for the third consecutive year. of which a miniscule $27 billion comes from organized retail such as supermarkets. but was under-represented by organized retail. Kearney estimates India's organized retail had a 31% share in clothing and apparel.[22] A 25% market share. food waste is rife.

[27] [edit]The Indian Retail Market This section requires expansion.[30] [edit]Major Indian Retailers This section requires expansion. small ticket sizes.[28] 1. there are significant challenges as well given that over 90% of trade is conducted through independent local stores. The Indian market offers endless possibilities for investors.retail was growing between 20% to 30% per year. complex distribution network.450).(January 2012) Indian market has high complexities in terms of a wide geographic spread and distinct consumer preferences varying by each region necessitating a need for localization even within the geographic zones. Challenges include: Geographically dispersed population.[26] These data correspond to retail prospects prior to November announcement of the retail reform.8 million households in India have an annual income of over 45 lakh (US$81.19 m2)/ person is lowest in the world Indian retail density of 6 percent is highest in the world. little use of IT systems. India has highest number of outlets per person (7 per thousand) Indian retail space per capita at 2 sq ft (0.[29] While India presents a large market opportunity given the number and increasing purchasing power of consumers.(January 2012) [dated info] . limitations of mass media and existence of counterfeit goods.

Crossword.: Textiles. Inorbit Mall Nilgiri’s-Formats: Nilgiris’ supermarket chain Marks & Spencer: Clothing. Arvind Brands. jewellery RP-Sanjiv Goenka Group Retail-Formats: Spencer’s Hyper. Steeljunction. Reliance Living. Jainsons. Clothing. aLL. It plans to open three stores in London by 2008-end. Home furnishings. Spencer's Daily.[31] The low-intensity entry of the diversified Mahindra Group into retail is unique because it plans to focus on lifestyle products. The Mahindra Group is the fourth largest Indian business group to enter the business of retail after Reliance Industries Ltd. particularly in developed markets. Reliance Digital. or a range of products. : Groceries. Hyper City. Another denim wear brand. Star India Bazaar.Checkout lanes. iStore      Reliance ADAG Retail-Format: Reliance World K Raheja Corp Group-Formats: Shoppers Stop. lifestyle products. Reliance Autozone. The other three groups are focusing either on perishables and groceries. has launched its store in Melbourne recently. The Raymond Shop. Spykar Lifestyle and Royal Classic Polo are busy chalking out foreign expansion plans through the distribution route and standalone stores as well. the Aditya Birla Group. Shirts & More etc. E-Zone etc. Landmark. Reliance Trends. Colourplus. which is now moving towards becoming a casualwear lifestyle brand.  Reliance Retail-Formats: Reliance MART. TruMart Next retail India Ltd (Consumer Electronics)(www. Madura Garments. handloom apparel. Neck Ties & More. some majors are also looking at the US and Europe. Pantaloons. Brand Factory. Viveks Service Centre. Music World.next. Park Avenue Woman.co.   Fabindia: Textiles. organized retail in Malad. Au Bon Pain (Internaional bakery cafeteria). Food Bazaar. Beverly Hills Polo Club  The Tata Group-Formats: Westside. Reliance Jewellery. Parx. and Bharti EnterprisesLtd. Spykar. Cosmetics [Western Tamilnadu's Leading Retailer]     Lifestyle International-Lifestyle. Reliance SUPER. Park Avenue. or both. etc. Shri Kannan Departmental Store (P) Ltd . Titan Industries with World of Titans showrooms. While most have identified a gap in countries in West Asia and Africa..   REI AGRO LTD Retail: 6TEN and 6TEN kirana stores Future Groups-Formats: Big Bazaar. Pyramid Retail-Formats: Pyramid Megastore. Viveks Safe Deposit Lockers . Croma. Home Centre. Reliance Footprint. Mumbai Indian apparel retailers are increasing their brand presence overseas. Fashion Station. Central. Fun City and International Franchise brand stores. Depot.  Raymond Ltd.in) Vivek Limited Retail Formats: Viveks. Reliance FRESH. Tanishq outlets. Max.

co. etc.).[33] . consumer appliances and fruits and vegetables to retailers and small businesses. Wal-Mart Stores Inc and Sunil Mittal's Bharti Enterprises have entered into a joint venture agreement and they are planning to open 10 to 15 cash-and-carry facilities over seven years. Giantti. BANGLADESH.etc. is slated to open in north India by the end of 2008. the world’s second largest retailer by sales. Gili. Entry of MNCs A spice market The world's largest retailer by sales. technical services and know how to an Indian company for direct-to-consumer retail.in)  Gitanjali.            PGC Retail -T-Mart India [1]. Gitanjali Jewels. Grand India Bazaar."More" Outlets Kapas.[32] see also for more Detail Pick/Müller "[2]"</ref> Carrefour.a platform which enables hybrid commerce for thousands of neighborhood stores. Subhiksha-Formats: Subhiksha supermarket pharmacy and telecom discount chain.. D'damas.Formats: Fabmall supermarket chain and Fabcity hypermarket chain Vishal Retail Group-Formats: Vishal Mega Mart BPCL-Formats: In & Out German Metro Cash & Carry Shoprite Holdings-Formats: Shoprite Hyper Paritala stores bazar: honey shine stores Aditya Birla Group . Switcher. The first of the stores.Cotton garment outlets AaramShop . Respect India.Nakshatra. Gitanjali Gifts. (Expected to be 500 by the end of 2012)(www. SRI LANKA etc. Asmi. which will sell groceries. Nmart Retails with 131 operating Stores till now and total 287 Stores in India and 1 to open in DUBAI Shortly and many more in Process Globally (ZAMBIA. is planning to set up two business entities in the country one for its cash-and-carry business and the other a master franchisee which will lend its banner.nmart. Trinethra.

which favours small retail businesses. A complete expansion of retail sector to levels and productivity similar to other emerging economies and developed economies such as the United States would create over 50 million jobs in India. plans to set up shop in India with a wholesale cash-and-carry business and will help Indian conglomerate Tata group to grow its hypermarket business. and cumbersome local laws. the Indian government announced relaxation of some rules and the opening of retail market to competition. Absence of developed supply chain and integrated IT management. both organized and unorganized. and about half of levels in other emerging economies. Lack of Retailing Courses and study options Intrinsic complexity of retailing – rapid price changes. Indian central government denied foreign direct investment (FDI) in multi-brand Indian retail. Costco Wholesale Corp (Costco) known for its warehouse club model is also interested in coming to India and waiting for the right opportunity. This about a third of levels in United States and Europe. Lack of trained work force. In November 2011. forbidding foreign groups from any ownership in supermarkets. the labor productivity in Indian retail was just 6% of the labor productivity in United States in 2010.. Taxation.[35] Total retail employment in India. constant threat of product obsolescence and low margins. Regulations restricting real estate purchases.[34] Tesco Plc. to sell multiple products from different brands directly to Indian consumers. For example. . while India's labor productivity in non-food retailing is about 8% compared to Poland's 25%. Low skill level for retailing management.The world’s fifth largest retailer by sales. convenience stores or any retail outlets.. account for about 6% of Indian labor work force currently . [edit]Challenges A McKinsey study claims retail productivity in India is very low compared to international peer measures.most of which is unorganized. [edit]India retail reforms Until 2011. India's labor productivity in food retailing is about 5% compared to Brazil's 14%. Training and development of labor and management for higher retail productivity is expected to be a challenge. To become a truly flourishing industry. retailing in India needs to cross the following hurdles:[36]         Automatic approval is not allowed for foreign investment in retail.

 both multi-brand and single brand stores in India will have to source nearly a third of their goods from small and medium-sized Indian suppliers. and about five to six million of them in logistics alone. who see large foreign chains as a threat. in the most radical pro-liberalisation reform passed by an Indian cabinet in years. analysts claim. announced on 24 November 2011 the following: [20][37]  India will allow foreign groups to own up to 51 per cent in "multi-brand retailers". the policy is an enabling legal framework for India. Traders add huge mark-ups to farm prices." Mr Banerjee said. can own 100 percent of their Indian stores. refrigeration. including cold chains. director-general. out of some 7935 towns and cities in India. transportation. with refrigerated vans. cold storage and more efficient logistics. packing. The need to control food price inflation—averaging doubledigit rises over several years—prompted the government to open the sector. "I think foreign chains can also bring in humongous logistical benefits and capital. Actual implementation of policy will be within the parameters of state laws and regulations. It has the potential to transform not only the retailing landscape but also the nation's ailing infrastructure. In other words. while offering little by way of technical support to help farmers boost their productivity. Confederation of Indian Industry.[20][38] A Wall Street Journal article claims that fresh investments in Indian organized retail will generate 10 million new jobs between 2012–2014. up from the previous cap of 51 percent.  single brand retailers. The opening of retail industry to global competition is expected to spur a retail rush to India.[38] It is expected to help tame stubbornly high inflation but is likely to be vehemently opposed by millions of small retailers. Hitherto India's food supplies have been controlled by tens of millions of middlemen (less than 5% of Indian population).  multi-brand retailers must have a minimum investment of US$100 million with at least half of the amount invested in back end infrastructure. Analysts said allowing in big foreign retailers would provide an impetus for them to set up modern supply chains. . as supermarkets are known in India.  all multi-brand and single brand stores in India must confine their operations to 53-odd cities with a population over one million. The states of India have the prerogative to accept it and implement it.The government of Manmohan Singh." Chandrajit Banerjee. prime minister. pushing up retail prices significantly. told Reuters.. such as Apple and Ikea. packaging technology. sorting and processing to considerably reduce the post harvest losses and bring remunerative prices to farmers. or they can decide to not implement it if they so choose. "The biggest beneficiary would be the small farmers who will be able to improve their productivity by selling directly to large organised players. even though the retail market is being opened to just 53 cities out of about 8000 towns and cities in India. It is expected that these stores will now have full access to over 200 million urban consumers in India.  the opening of retail competition will be within India's federal structure of government.

. Ashok Ganguly and other economic policy leaders of India. on 3 December 2011. who is against the policy and whose Trinamool Congress brings 19 votes to the ruling Congress party-led coalition. after a meeting of all political parties on 7 December 2011 said. In this announcement. They urged farmers. "The decision to allow foreign direct investment in retail is suspended till consensus is reached with all stakeholders. consumers and the common people to raise their voice against this false drama of apprehension against investment and modernising trade in organised retailing. Suspension of retail reforms on 7 December 2011 would be. India approved increased competition and innovation in single-brand retail. Reuters reports that this risked a possible dilution of the policy rather than a change of heart. Mamata Banerjee. 2012. improve the availability of goods for the consumer. claims Mehta.. and enhance competitiveness of Indian enterprises through access to global designs. president of the Centre for Policy Research."[6] [edit]Single-brand retail reforms approved On January 11. even though it can help fix the exploitation of Indian farmers by the decades-old "arhtiya" and "mandi" monopoly system. technologies and management practices. [45] Anand Sharma. The mom-and-pop farmers of India support these reforms. [44] Several newspapers claimed on 6 December 2011 that India parliament is expected to shelve retail reforms while the ruling Congress party seeks consensus from the opposition and the Congress party's own coalition partners. suggesting it is weak and ineffective in implementing its ideas. encourage increased sourcing of goods from India. claimed any U-turn or postponement of retail reforms will cause an immense loss of face to the Congress-led central government of Manmohan Singh. the reports claimed. on 4 December 2011. claimed that India’s government may put the FDI retail reforms on hold until it reaches consensus within the ruling coalition. They called upon Indians to come out and strongly support progressive measures and reforms with the same spirit and gusto with which we take the liberties to criticize policies or issues we do not appreciate. India Today claims the policy is good for the small Indian farmer and the Indian consumer. The government has already annoyed those who oppose change and innovation in retail. the Chief Minister of the Indian state of West Bengal. By putting retail reforms on hold. the government will additionally alienate much larger segment of India's population supporting FDI. an embarrassing defeat for the Indian government.[39][40][41] India Today claimed that the resistance to Indian retail reforms is primarily because it has been badly sold. called placing investment and innovation in retail on hold for the sake of vested interests as unfair and detrimental to vast majority in India. So they will now have the worst of both worlds. .[42] Pratap Mehta.[46] The reform seeks to attract investments in production and marketing. India's Commerce and Industry Minister. The consumers of India want the reforms.[edit]Indian retail reforms on hold According to Bloomberg.[43] Deepak Parekh.

artisans and craftsmen. announced IKEA is postponing its plan to open stores in India. Ikea announced that it plans to double what it sources from India already for its global product range. get competition out of the way.India requires single-brand retailer. This was an obstacle to IKEA's investment in India.[47][48]  Independent stores will close. We have seen this in the case of the soft drinks industry. profits will go to foreigners. where such restrictions do not exist. He claimed that IKEA's decision reflects India’s requirements that single-brand retailers such as IKEA source 30 percent of their goods from local small and medium-sized companies. to source at least 30% of the value of products from Indian small industries. then raise prices.[9] [edit]Social impact and controversy with retail reforms The November 2011 retail reforms in India have sparked intense activism. both in opposition and in support of the reforms. village and cottage industries. few thousand jobs may be created but millions will be lost. since homegrown companies and traditional markets may be able to do the job. become a monopoly. Walmart employs very few people in the United States. leading to massive job losses. and that it will take IKEA some time to source goods and develop reliable supply chains inside India. India. IKEA in the near term. with greater than 51% foreign ownership. Mikael Ohlsson. within three years.  Walmart will lower prices to dump goods. produce loss in these retail formats is very high for perishables Critics of the Indian retail reforms announcement are making one or more of the following points:. . If allowed to expand in India as much as Walmart has expanded in the United States.  Work will be done by Indians.  India doesn't need foreign retailers. chief executive of IKEA. Pepsi and Coke came in and wiped out all the domestic brands. plans to focus expansion instead in China and Russia. to over $1 billion a year. [edit]Controversy over Indian retail reforms A horticultural produce retail market in Kolkata.

Indian retail industry needs knowledge and global integration.[52] Anti-trust laws and state regulations. and India's population of about 1200 million. Walmart employs 1.one of the world's largest audit companies . Indian government is already operating on budget deficits.[49] With United States population of about 300 million. electronic cash registers and other retail supporting organizations. It entered India as a trader and then took over politically. cold storage centers. Beyond capital. software industry. the employment in both retail and wholesale trade increased from 4% in 1992 to about 7% in 2001. Canada credits their very low inflation rates to Walmart-effect. They have not become monopolies. Global retail leaders. post retail reforms. Carrefour. Tesco. the number of traditional small retailers also grew by 30% over 5 years. for example. such as those in Indian legal code. These retail companies have operated for over 30 years in numerous countries.[51]  Walmart.5% market share of the total United States retail. Global integration can potentially open export markets for Indian farmers and producers. Target. since it came into Indian wholesale retail market. hospitals. if Walmart-like retail companies were to expand in India as much as their presence in the United States. some of which are partly owned by people of Indian origin. Coop are some of over 350 global retail companies with annual sales over $1 billion. the expected jobs in future Indian organized retail would total over 85 million. Adjusted for this market share. post China announcing FDI retail reforms. retail reforms are likely to be massive boost to Indian job availability. The government hasn't built consensus. Walmart has a 6. Global investment capital through FDI is necessary. In absolute terms.finds that in China. It is simply not possible for Indian investors or Indian government to fund this expansion. In addition. contrary to some concerns in China. Instead of job losses. millions of additional jobs will be created during the building of and the maintenance of retail stores. job creation and growth at the rate India needs. Walmart. and the staffing level in Indian stores kept at the same level as in the United States stores.6 million Indian citizens.[50] can bring this knowledge. expects to source and export some $1 billion worth of goods from India every year. have prevented food monopolies from forming anywhere in the world. The current consumer price inflation in Europe and the United States is less than 2%. Walmart alone would employ 5. There will be sterile homogeneity and Indian cities will look like cities anywhere else.  KPMG . Competition between Walmart-like retailers has kept food prices in check. .   Remember East India Company. They claim:[48]  Organized retail will need workers.4 million people in United States alone. roads. [13]  India needs trillions of dollar to build its infrastructure. China experienced the creation of 26 million new jobs within 9 years. compared to India's double digit inflation. Supporters claim none of these objections has merit. Price inflation in these countries has been 5 to 10 times lower than price inflation in India. Indian economy is small. Metro. with limited surplus capital. post China opening its retail to foreign and domestic innovation and competition. housing and schools for its growing population. Additionally.

Like China. while increasing the income of small farmers. or in antiquated state-run warehouses. Global awareness and news media were not the same in 18th century as today. and they have benefitted immensely by welcoming FDI in retail. The next most important market in India is bottled water. Many years ago.  Comparing 21st century to 18th century is inappropriate. diversity. In these markets. Conditions today are not same as in the 18th century. and such taxes will reduce Indian government budget deficit. It has over 57 million square feet of retail space owned by foreigners. More competition is lacking because of limited demand. homogeneity and other factors to suit their cultural preferences. Costconscious organized retail companies will avoid waste and loss. coffee and tea market in India are big markets. and have plenty of domestic brands. market share. it is today. that outsells combined soft drink sales of the Pepsi and Coca Cola. nearly half of any profits will remain in India. Thailand and Indonesia see foreign retailers as catalysts of new technology and price reduction. they can place limits on number. small farmers get better prices. Consider China today. as much as 40% of food production doesn't reach consumers. China allowed FDI in its retail sector. Any profits will be subject to taxes. rather than isolating itself. it is unlikely foreign retailers will earn any profits in India for the first 5 to 10 years. in future. employing millions of Chinese citizens. Yet. in transit.[48] Food often rots at farms. It enjoys respect from all global powers. states can always introduce regulations and India can change the law to ensure the benefits of retail reforms reach the poorest and weakest segments of Indian society. India too will benefit by integrating with the world. Soft drinks represent less than 5% of Indian beverage market. tea and coffee and these account for 90% of Indian beverage market. milk. in large part because of huge investments they had to make initially. according to some estimates. free and fair retail competition does indeed lead to sharply lower inflation than current levels. Thus. Fifty million children in India are malnourished. Coca Cola and Pepsi have plenty of competition. The Pepsi and Coke example is meaningless in the context of Indian beverage market. China adopted the retail reform policy India has announced. making food available to the weakest and poorest segment of Indian society.  Inbuilt inefficiencies and wastage in distribution and storage account for why. jobs created by organized retail pay well. Finally. China hasn't become a vassal of imperialists.[53] Indian consumer prefers milk-based.[37] States have the right to add restrictions to the retail policy announced before they implement them. as well as Pepsi and Coca Cola. Bottled water. Other Asian countries like Malaysia. Walmart.  States have a right to say no to retail FDI within their jurisdiction. Organized retail too will have numerous brands and strong competition. retail companies must earn profits with hard work and by creating value. . Indian consumer has limited interest in soft drinks.[25]Ultimately.[54]  With 51% FDI limit in multi-brand retailers. for example. and healthier food becomes available to more households. style. European brands like Nestle. India wasn't a democracy then. It has taken FDI-financed retailers in China between 5 to 10 years to post profits. Taiwan.

The opposition parties currently disrupting the Indian parliament on retail reforms have not offered even one idea or a single proposal on how India can eliminate food spoilage. the Indian government circulated a discussion paper on FDI retail reforms. unilateral and unwelcome. For example. when opposition formed the central government. academics. In 2010. an organized retailer named Whole Foods has rapidly grown to annual revenues of $9 billion by working closely with farmers. industry bodies. including the Bharatiya Janata Party.since its arrival in Indian wholesale retail market. A well-regulated retail sector will help curtail some of these abuses. The announced reforms are the result of this consensus process. has successfully introduced "Direct Farm Project" at Haider Nagar near Malerkotla in Punjab. About 10 years ago. since consensus is not built by threats and disruption. More recently.[58] . if they have any.[56] Comments from a wide cross-section of Indian society including farmers' associations. feed the poor.[51]  Indian small shops employ workers without proper contracts. Opposition parties claim supermarket chains are ill-advised.[48]  Organized retail has enabled a wide range of companies to start and flourish in other countries. The current opposition is not helping the consensus process. 2011. another version of the discussion paper was circulated by the central government of India. the intense criticism now targets Congress-led coalition government. and its decision to push through one of the biggest economic reforms in years for India. Despite the fact that Salman Khurshid. [edit]Opposition to retail reforms Within a week of retail reform announcement. traders' associations. India’s law minister. reduce inflation. claiming that many opposition parties. By early August 2011. had privately encouraged the government to push through the retail reform. thereby reducing waste and bringing fresher produce to Indian consumers. the consensus from various segments of Indian society was overwhelming in favor of retail reforms.[13] On July 6. improve food security.[55]  The claims that there is no consensus is without merit. Many unorganized small shops depend on child labour. consumer forums. Those who oppose current retail reforms should help build consensus with ideas and proposals. Indian government has faced a political backlash against its decision to allow competition and 51% ownership of multi-brand organized retail in India. Retail reforms discussions are not new. delighting customers and caring about the communities it has stores in. improve the incomes of small farmers. where 110 farmers have been connected with Bharti Walmart for sourcing fresh vegetables directly. making them work long hours. investors. they had proposed retail reforms and suggested India consider FDI in retail. in the United States. economists were analyzed in depth before the matter was discussed by the Committee of Secretaries. retail reforms announced evolved after a process of intense consultations and consensus building intiative.[57] The reform outline was presented in India's Rajya Sabha in August 2011.

Bihar.[62] The Hindu. A Wall Street Journal article reports that in Uttar Pradesh. ignoring the shutdown call. Conflicting claims were made by the organizers of the nation wide shutdown. Even in states where opposition political parties are in power. in protest of retail reform received a mixed response. many ignored the call for the shutdown. Both sides have made conflicting claims about the position of chief ministers from these states. Delhi. Gadkari is the president of BJP. economy. announced her opposition to retail reform. one Trader union's secretary general claimed traders across the country participated wholeheartedly in the strike. but I do not support it. One has to see what one’s capacity is.[60] On 1 December 2011. an India-wide "bandh" (close all business in protest) was called by political parties opposing the retail reform.[63] The political parties opposing the retail reforms physically disrupted and forced India's parliament to adjourn again on Friday 2 December 2011. the key party currently organizing opposition to retail reform. in its attempt to convince ." with her colleague Sushma Swaraj busy tweeting up a storm of misinformation about how Wal-Mart allegedly ruined the U. Bihar and Madhya Pradesh. Haryana. While many organizations responded.S. Uttar Pradesh. Punjab and Assam the call evoked a partial response. Mamata Banerjee. Uma Bharti. Even Purti Group. the newspaper claimed a majority of kirana stores and neighborhood small shops — for whom apparently the trade bandh had been called — remained open.‖[59] Other states whose Chief Ministers have either personally announced opposition or announced reluctance to implement the retail reforms: Tamil Nadu. In Gujarat. threatened to "set fire to the first Wal-Mart store whenever it opens. leaving many stores open day-long and others opening for business as usual in the second half of the day. Gujarat. [61] The Times of India. Karnataka and Rajasthan are examples of these states. a national newspaper of India. Andhra Pradesh. Some states had strong support.The opposition claims the entry of organized retailers would lead to their dominance that would decimate local retailers and force millions of people out of work. claimed people appeared divided over the bandh call and internal rivalry among trade associations led to a mixed response. a senior leader of the opposition Bharatiya Janata Party (BJP). While a number of wholesale markets observed the shutdown. the chief minister of West Bengal and the leader of the Trinamool Congress. ignoring the call for bandh. a network of stores owned and operated by Nitin Gadkari were open for business. while most did not. Kerala. The Indian government refused to cave in. Contrary to eyewitness reports. the reach of the protest was mixed. claimed the opposition's call for a nation wide shutdown on 1 December 2011. another widely circulated newspaper in India. You see America is America … and India is India. claiming ―Some people might support it. Chief Ministers of many states have not made a personal statement in opposition or support of India needing retail reforms.

but they may have to accept lower margins for greater volumes.[65] [edit]Farmer groups Various farmer associations in India have announced their support for the retail reforms. Gadhve claimed. Reddy commented. Given the perishable nature of food like fruit and vegetables. Over 90 per cent of consumers said FDI in retail will bring down prices and offer a wider choice of goods.‖ CIFA mainly operates in Andhra Pradesh. Over 75 per cent of the traders claimed their marketing resources will continue to be needed to push sales through multiple channels. Indian parliament has been dysfunctional for the entire week of November 28. Jakhar asked that the government make it mandatory for organized retailers to buy 75% of their produce directly from farmers.[64] [edit]Support for retail reforms In a pan-Indian survey conducted over the weekend of 3 December 2011. Punjab and Haryana with 2.200 million consumers and 5 million traders. Karnataka and Tamil Nadu. For example:  Shriram Gadhve of All India Vegetable Growers Association (AIVGA) claims his organization supports retail reform.200 farmer outfits as its members.[66]  Consortium of Indian Farmers Associations (CIFA) announced its support for retail reform. Andhra Pradesh. commission agents at the sabzi mandis (India's wholesale markets for vegetables and farm produce) and the small shopkeepers in the unorganized retail market. "A better cold storage would help since this could help prevent the existing loss of 34% of fruits and vegetables due to inefficient systems in place. but has a .through dialogue that retail reforms are necessary to protect the farmers and consumers. 2011 over the opposition to retail reforms. West Bengal.[66]  Bharat Krishak Samaj. Chengal Reddy. He claimed that currently. claimed a monopoly exists between the private guilds of middlemen. bypassing the middlemen monopoly and India's sabzi mandi auction system. overwhelming majority of consumers and farmers in and around ten major cities across the country support the retail reforms. Chattisgarh. ―India has 600 million farmers. He cannot wait for a better price and is thus exploited by the current monopoly of middlemen. the farmer is compelled to sell his crop at whatever price he can get. 1. a farmer association with more than 75." AIVGA operates in nine states including Maharashtra. without the option of safe and reliable cold storage. it is the middlemen commission agents who benefit at the cost of farmers. Nearly 78 per cent of farmers said they will get better prices for their produce from multi-format stores. He urged that the retail reform must focus on rural areas and that farmers receive benefits. I fail to understand why political parties are taking an anti-farmer stand and worried about half a million brokers and small shopkeepers. the chairman of Bharat Krishak Samaj.000 members says it supports retail reform. Ajay Vir Jakhar. secretary general of CIFA claimed retail reform could do lots for Indian farmers. Bihar.

[68] Joshi claims FDI will help the farm sector improve critical infrastructure and integrate farmerconsumer relationship.growing members from rest of India. reduce counterfeit trade and tax evasion on expensive item purchases. the chairman of the People for Environment Horticulture & Livelihood of Himachal Pradesh. fruits and vegetables. announcing his support for retail reforms claimed FDI is expected to roll out produce storage centers that will increase market access.  Sharad Joshi. Suryamurthy.[67] Highly perishable fruits like cherry. Joshi feels retail reform is just a first step of needed agricultural reforms in India. the rest is taken as commissions and markups by middlemen and shopkeepers  For perishable horticulture produce. founder of Shetkari Sangathana (farmers association). 12 to 20 a kilogram. 2 to 3 a kilogram. Sales will boost with the opening up of retail. Today. has announced his support for retail reforms. the farmers will naturally be benefited. apricot. average price farmers receive is barely 12 to 15% of the final price consumer pays  Indian potato farmers sell their crop for Rs. and create dependable supply chains for secure supply of food staples. warehousing and contract farming.[69] [edit]Economists and entrepreneurs Many business groups in India are welcoming the transformation of a long-protected sector that has left Indian shoppers bereft of the scale and variety of their counterparts in more developed markets. claims farmer groups across India do not support status quo and seek retail reforms. the president of the Confederation of Indian Industry. For example. including Shetkari Sanghatana in Maharashtra. claimed Thakur. peaches and plums have a huge demand but are unable to tap the market fully because of lack of cold storage and transport infrastructure. its storage infrastructure is grossly inadequate.  Prakash Thakur. while the Indian consumer buys the same potato for Rs. Even though India is the second-largest producer of fruits and vegetables in the world. reduce the number of middlemen and enhance returns to farmers. creating cold storage to prevent food spoilage. the article claims:[67]  Indian farmers get only one third of the price consumers pay for food staples. Organized retailers will reduce waste by improving logistics. They will .[58] B. Rajasthan Kisan Union and Himachal Farmer Organisations. in an article in The Telegraph. the existing retail has not been able to supply fresh vegetables to the consumers because they have not invested in the backward integration. When the farmers' produce reaches the end consumer directly. because with the current retail system the farmer is being exploited. improve hygiene and product safety. and that the government should pursue additional reforms. claimed the retail reform would open enormous opportunities and lead to much-needed investment in cold chain. Muthuraman.

increase choice and reduce India’s rampant inflation by reducing waste. These experts claim India's post-harvest losses to exceed 25%.[74] [edit]Chief Ministers of Indian states Supporters of retail reform who have voiced the need to promote organized retail include Chief Ministers of several states of India. A Food and Agricultural Organization report claims that currently. these Chief Ministers urged the Prime Minister to prioritize . FDI is a good thing for India. global retail companies can find and provide additional markets to Indian farmers. These supporters claim that unorganized small shopkeepers will continue to exist alongside large organized supermarkets. The Economist claims. Over US$50 billion of additional income can become available to Indian farmers by preventing post-harvest farm losses. inadequate storage technologies. because for many Indians they will remain the most accessible and most convenient place to shop. the Indian born Nobel prize winning economist. on average. Andhra Pradesh. Walmart. Quite often.[60] Organized retail will offer the small Indian farmer more competing venues to sell his or her products. enough food would be saved every year to feed 70 to 100 million people over the year. One study claims that if these post-harvest food staple losses could be eliminated with better infrastructure and retail network in India. already sources and exports about $1 billion worth of Indian goods for its global customers. in a December 2011 interview claims foreign direct investment in multi brand retail can be good thing or bad thing depending on the nature of the investment. about five to six million of them in logistics alone. Organized retail is also expected to initiate infrastructure development creating millions of rural and urban jobs for India’s growing population. claims Professor Sen. Tamil Nadu and Gujarat. the small farmer faces significant losses post-harvest at the farm and because of poor roads. retail reforms offer farmers access to more buyers from organized retail.. proper storage and retail. since its arrival in India's wholesale retail market. inefficient supply chains and farmer's inability to bring the produce into retail markets dominated by small shopkeepers. improving transport. With less spoilage of staples and agricultural produce. the supporters of retail reform claim will generate 10 million new jobs by 2014. the study claims that poor farmers and others loose income because of the waste and inefficient retail. every year for each farmer. and increase income from less spoilage and waste. The list includes the Chief Ministers of Maharashtra. in India. More buyers will compete for farmers produce leading to better support for farmers and to better bids.[70][71] Unlike the current monopoly of middlemen buyer. several belonging to political parties that have no affiliation with Congress-led central government of India. Fresh investment in organized retail.[72] Supporters of retail reform. In a report submitted earlier in 2011. [73] Amartya Sen. say it will increase competition and quality while reducing prices helping to reduce India's rampant inflation that is close to the double digits. spoilage and cutting out middlemen. Not only do these losses reduce food security in India.

They expect a flurry of joint ventures with global majors for expansion capital and opportunity to gain expertise in supply chain management. the Chief Minister of Delhi has come out in support of the retail reform. India’s Foodworld expects its global relationship will only get stronger. integrated cold chains. plans to ramp up its presence to more than 200 locations. With the relaxation in international investments in Indian retail. claimed "this will go a long way in bringing about a sea change in rural economy. Nilgiri's and ShopRite support retail reform and consider international competition as a blessing in disguise. The Chief Minister of the state of Maharashtra . The decision will boost agriculture and allied sectors.has also welcomed the retail reform. Foodworld. are now singing a different tune. as they already procure the farm products directly from the growers without the involvement of middlemen or traders. Spencer's Retail with 200 stores in India. refrigerated transportation and food processing facilities in a big way.the state with the highest GDP in India and home to its financial capital Mumbai . Competition and investment in retail will provide more benefits to consumers through lower prices.[77][78] The Chief Ministers of Haryana and Punjab claim that the announced retail reforms will immensely benefit farmers in their states.[76] as have the Chief Ministers of the two farming states of Haryana and Punjab in north India. allow organized retail to buy direct from farmers at remunerative produce prices. announcing his support to the retail reform.reforms to help promote organized retail. and with retail of fresh vegetables and fruits accounting for 55 per cent of its business claims retail reform to be a win-win situation.. wider availability and significant improvement in supply chain logistics.. an eastern state in India." Criticising the BJP-organized opposition. Spencer’s claims that there is scope for it to expand its footprint in terms of store location as well as procuring farm products.[82] [edit]See also     Indian road network Agriculture in India Indian expressways Fishing in India .[81] [edit]Current supermarkets Existing Indian retail firms such as Spencer's. shorten the retail path from farm to consumer. and reduce farm to retail costs.[75] Similarly. logistics. manufacturing. It has already tied up with Hong Kong-based Dairy Farm International.[79][80] Tarun Gogoi. the Chief Minister of Assam. which operates over 60 stores. Foodworld Supermarkets Ltd. Gogoi claimed that these parties who had just a few years ago dubbed opening up retail as good for India.

India confront WalMarts". May 2007.jsp?containerId=AP9140604T . The Wall Street Journal. Parliament of India. 2.The Rise of India's Consumer Market". ISBN 978-81-7188-480-3. "India puts retails reforms on hold". ^ "The Bird of Gold . ^ "ICRIER Begins Survey of Indian Retail Sector. FDI in Retail Sector: INDIA.the great debate".. Academic Foundation. ^ Amol Sharma (24 June 2012). 16. ^ "Times of India Newsreport". ^ Mukherjee et al. 4. 10.Indian Retail". 12. 3. ^ "Global Economy: China. 15. CUTS International. McKinsey and Company.. KPMG.  http://www.. ^ Sharma. The Wall Street Journal. Vibhuti. ^ a b "Retailing in India Unshackling the chain stores". "Changing the way Indians shop". The Financial Times.Reform in India: Let Walmart in The Financial Times: How to open up India’s economy (2 December 2011) Report on Indian Retail. 5. A Report by ICRIER. ^ "Winning the Indian consumer". ^ Jagdish Bhagwati (14 December 2010). Megha (7 December 2011). A report that lists some of the evolution over last 20 years. The Wall Street Journal. 2010. Asia Times. 22 January 2012. "IKEA Knocks on India's Door". 9. "Growth and Poverty . Bahree. ^ a b c d e "FDI IN MULTI-BRAND RETAIL TRADING"." 19 March 2007.An Ernst & Young Report. McKinsey & Company. ^ a b Agarwal. 6. Amol. BBC News. ^ "India again tops global retail index. Columbia University.com/getdoc. ^ Anand Dikshit (August 12 2011). Prasanta (11 January 2012). "India Lifts Some Limits on Foreign Retailers".[edit]External links       The Economist December 2011 issue . . Sanjoy (25 November 2011). ^ Majumder. 7. The Wall Street Journal. Sahu. ^ Mehta and Chatterjee (June 2011). KPMG 2009 The Great Indian Retail Story . "The Uneasy Compromise ." 22 /6/ 2007. 17. 14. And The New: Indian retail industry is evolving. 13. 2007 2011 Retail Reform Commentary: Expected impact of FDI in Retail – Ernst & Young India Viewpoint The Old Kings. The Economist. 11. "Hiren Mukerjee Memorial Parliamentary Lecture: Parliament of India". ^ a b "Ikea shelves Indian retail market move".idc-ri. Arpita (2006). 8. 2005. 29 May 2008. 31 January 2004.IDC Retail Insights Report on Indian Retailing and Trends [edit]References 1.

"India Goes Wild Over Wal-Mart". ^ "MIND THE GAP". The Financial Times. "India Unlocks Door for Global Retailers". Sadanand (November 29.. ^ a b "India's retail reform: No massive rush". ^ "Government of India. ^ Bahree. The Wall Street Journal. 41. The Economic Times." 30.1 (2012 Series)". Salil (29 December 2011).India". The Wall Street Journal. 2011). . 24. Megha (November 25. laptops are flying off the shelves. 21. ^ a b Dhume. 3 December 2011." 28 June 2009. The Economist. "India Parliament Expected to Suspend Key Retail Proposal". 28 November 2011. ^ "Mahindra joins the retail bandwagon." 11 August 2007. ^ a b c d Tripathi. 25. McKinsey & Co. 48. 27. Reuters. ^ "India to put foreign supermarket plan on hold".com. March 2011. Calcutta. US’s fifth biggest. 4 December 2011. eying India?" 35. Ministry of Commerce & Industry. ^ "India government puts foreign supermarkets "on pause"". London: The Guardian. 42. ^ "Global Powers of Retailing 2011". ^ "Economic and financial indicators" 3 July 2008. 23. 47. ^ "Retail . 46. Megha (6 December 2011). ^ a b c Bahree. ^ "A good retail decision badly sold". ^ "Retail Scenario in India" 37. 43. Press Note No. The Wall Street Journal. 2011. Government of India. India: The Telegraph. 11 January 2012. 19. Ministry of Commerce. ^ "INDIAN RETAIL INDUSTRY: A Report". 31. ^ "Traditional Retail Trade in India. 2 December 2011. ^ "Indian Retail story from Myths to Mall. 28. ^ "LCD televisions. Department of Industrial Policy & Promotion. 1 December 2011. ^ a b "Indian retail: The supermarket’s last frontier". 44. ^ "FDI in retail: Corporate honchos call protests on false drama". ^ "Reasons to Invest in India". "India needs Supermarkets". 30 November 2011. ^ "Carrerfour readies plan to enter India’s retail industry" 34. ^ "Costco. 4 December 2011. 40. 4 December 2011. 2011). 38. 3 December 2011. 36. The Financial Times. ^ "Singh criticism mounts after retail U-turn". 39. ^ "Fashion meets tech as handsets get sleek expensive" 29. to sell lifestyle products" 32. AT Kearney. ^ "Retail Global Expansion: A Portfolio of Opportunities".18. CARE Research. 26. 45. 2011. 4 December 2011. 20. ^ "Bharti & Wal-Mart joint venture" 33. Deloitte. Engineeringfromindia. India Today. The Economist. Bloomberg BusinessWeek. 3 December 2011. ^ a b "FDI POLICY IN MULTI BRAND RETAIL". ^ "Wal-Mart Waits With Carrefour as India Wins Instant Gain: Retail". 22. ^ "FDI in retail: Is it another nuclear deal moment?". The Economic Times.

49. . ^ "Revolt escalates against Indian retail reform". 59. 66. The Economic Times. 4 December 2011. (2 December 2011). 57. Food and Agriculture Organization of the United Nations. NDTV. 2 December 2011. The Financial Express. ^ "Gadkari’s own chain remains open for biz". The Times of India. 64. 27 November 2011. 68. 74. 56. 53. ^ a b "Backlash grows over reform of Indian retail". The Wall Street Journal. ^ a b "Walmart Asia to make India an export hub". 61. ^ "Indian retail kings around the world". ^ Grant. ^ Shah and Venkatesh (2009). 69. Whole Foods. Outlook India. ^ "Whole Foods annual report. 30 November 2011. 2 December 2011. ^ "Aam bania is more powerful than the aam aadmi". 2003. ^ "India: A parliament in limbo". Rediff. The Financial Express. ^ "Modi-led panel of CMs had suggested organized retail in report to PM". ^ "Walmart Fact Sheets". 58. 2 December 2011. ^ "Full Transcript: Your call with Professor Amartya Sen and Professor Jean Dreze". 51. 27 November 2011. 65. 50. ^ Mehdudia. 72. 71. ^ "Commerce Minister Anand Sharma speaks to NDTV on FDI". ^ a b "Farmer Organisations back retail FDI". ^ a b Dhume. kirana stores ignore bandh call". Walmart. ^ "FDI: Bandh call gets mixed response". ASSOCHAM. 62. Chennai. The Economist. 2011. 63. 73. 75. 2 December 2011. 67. Business Standard. 25 November 2011. 76. Indian Venture Capital and Private Equity Association. Indian Express. Toronto: The Globe and Mail. ^ "Discussion Paper on Foreign Direct Investment (FDI) in Multi-Brand Trading". 18 December 2011. 52. ^ "FDI in retail is first major step towards reforms in agriculture. Bloomberg BusinessWeek. ^ H. Calcutta. "Wholesale markets remain closed. 4 December 2011. 2 December 2011. FY 2010". ^ a b Suryamurthy. 60. "Enter. "Opportunities for Food Industry in India".. The Times of India. 1 December 2011. ^ "Major Benefits of FDI in Retail". Sadanand (29 November 2011). The Reformist India. ^ "Sheila Dikshit Backs FDI in Retail". farmer with an FDI in retail query". Pepsi Is the Real Thing". The Financial Express. 2 August 2011. Agricultural Economics Research Review 20: 117–126. ^ "Sustainable rice production for food security". "India goes wild over Wal-Mart". 2 December 2011. India: The Telegraph. ^ "Farmers and consumers favour FDI in retail". 16 September 2010. ^ "For India's Consumers. R. April 14. 2011). Sujay (1 December 2011). The Times of India. 6 December 2011. NDTV. Indian Institute of Technology Bombay. 55. BBC News. 30 November 2011. feels Sharad Joshi". 2010. "The Wal-Mart effect: food inflation tame in Canada". "Economic Analysis of Post-harvest Losses in Food Grains in India: A Case Study of Karnataka". 54. India: The Hindu. 70. November 2011. Tavia (January 25. ^ "India: Wholesale Reform". Basavaraja et al.

77. 79. ^ "After support from five states. The Hindu Business Line. ^ "Gogoi supports Centre on FDI issue". govt's hopes high". 80. Zee News. 26 November 2011. ^ "Retailers upbeat on Centre’s FDI move". 78. India Today. 27 November 2011. Shiromani Akali Dal hails reform". ^ "Haryana CM Hooda hails FDI in retail". ^ "5 States are game for FDI in retail. 81. Newstrack India. 1 December 2011. The Tribune. 30 November 2011. says Sharma". View page ratings Rate this page What's this? Trustworthy Objective Complete Well-written I am highly knowledgeable about this topic (optional) Submit ratings Categories:         Retailing in India Create account Log in Article Talk Read Edit View history        Main page Contents Featured content Current events Random article Donate to Wikipedia Interaction Help . 82. ^ "Government defends FDI in retail Industry. 30 November 2011. 30 November 2011. Business Standard.

See Terms of use for details.. Wikipedia® is a registered trademark of the Wikimedia Foundation. a non-profit organization. additional terms may apply. Text is available under the Creative Commons Attribution-ShareAlike License.         Contact us Privacy policy About Wikipedia Disclaimers Mobile view   .    About Wikipedia Community portal Recent changes Contact Wikipedia Toolbox Print/export Languages Português This page was last modified on 14 September 2012 at 18:18. Inc.

Sign up to vote on this title
UsefulNot useful

Master Your Semester with Scribd & The New York Times

Special offer for students: Only $4.99/month.

Master Your Semester with a Special Offer from Scribd & The New York Times

Cancel anytime.