Tesco Plc in India


1 bn under 25 yrs of age. expected to grow to $425 bn by 2010. .Indian Retail Industry ‡ Indian retail industry 5th largest in the world. increased spending by people of India. increasing disposable income. ‡ Retail contributes to 10% of GDP and employs 8% of working population ‡ 50% of population of 1. and $637 bn by 2015.

Structure of Indian Retail Industry .


Political influence Effected Sales and Dissatisfaction Unemployment in India Restricted growth in Organized Retail .

Non market Forces Affects Policy Makers ‡ Retail business is the second largest employer after agriculture ‡ In 2004. over 40 million people were unemployed in India ‡ The government does not want to antagonize the labor-intensive sector ‡ Numerous studies indicate that entry of retails giants will significantly effect sales at local establishments ‡ Left Parties have reservations against FDI ‡ Local merchants protest. lobbying etc .

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