ReguIating RetaiI Distribution ReguIating RetaiI Distribution

lndia Conpetition and ReguIation Report, 2011 lndia Conpetition and ReguIation Report, 2011
Suparna Karmakar
Senlor Fellow, C|RC
New Delbl, Aprll 20, 2011
|ntroouctlon |ntroouctlon
O Fastest growlng sector ln lnola ÷ conslstent oouble
olglt growtb tor nearly a oecaoe
O Major contrlbutor to GDP ÷ about 14° ot tbe
|nolan GDP ls contrlbuteo by tbe retall ano
wbolesale traoe
O |nola ls tbe most attractlve emerglng market
oestlnatlon tor retall lnvestment
O Domlnateo by tbe unorganlseo sector ÷ sbare ln
revenue nearly 95°
 rganlseo retalllng bas tew large sellers ano ls llmlteo to
urban buyers, but growlng market sbare ano e×pecteo to
nearly reacb USD100 bllllon, ano 12.4° ot total retall sales
2
Present Regulatory Reglme Present Regulatory Reglme
O Sector not regulateo by any e×cluslve central
regulatory tramework, yet to get lnoustry status
 Subject to appllcable local laws/sector regulatlons
O FD| ls problblteo ln retall traolng, e×cept tor
 Upto 51° unoer government route ln slngle brano
proouct retalllng, branoeo ourlng manutacturlng
 Upto 100° unoer automatlc route ln storage ano
warebouslng, lncl. tbat ot agrlcultural prooucts wltb
retrlgeratlon
 Upto 100° unoer automatlc route ln casb & carry
traolng/wbolesale traolng
3
Regulatory |ssues/concerns Regulatory |ssues/concerns
O Analysls ot tbe appllcable laws ano sector
regulatlons, lncl. olvergences ln state laws
 Sbops ano establlsbments act
 Welgbts ano measures act
 Multl-mooal transport ot gooos act
 |nternal market lssues - ctrol ano otber ta×es
 Customs act/SLZ provlslons
 Companles act
 Urban plannlng, zonlng, sourclng regulatlon
 Lano acqulsltlon/real estate costs & lssues
 Labour laws, lncl. contract labour act
 tber Llcences & Approvals neeoeo, etc 4
Scope ot Stuoy Scope ot Stuoy
O Aooress promotlon ot competltlon, botb at tbe
pre-entry level (vlz. multl-brano retall FD| lssues)
ano post-entry ln tbe oltterent actlvltles
complementlng/attectlng retalllng
 Preoatlon, pre-requlsltes tor a level playlng tlelo
O Analyse tbe sub-sector/lnoustry ano state
laws/regulatlons governlng retall traolng
 Domestlc establlsbment ano traoe regulatlons, ano
tbose relatlng to lmportatlon/loglstlcs SCM
O Lessons trom rest ot worlo
O Dlscuss tbe usetulness ot creatlng an
lnoepenoent regulator ln tbls sector
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Competltlon ln Retall ln |nola Competltlon ln Retall ln |nola
O Aooress promotlon ot competltlon, botb at tbe
pre-entry level (vlz. multl-brano retall FD| lssues)
ano post-entry ln tbe oltterent actlvltles
complementlng/attectlng retalllng
 Preoatlon, pre-requlsltes tor a level playlng tlelo
O Analyse tbe sub-sector/lnoustry ano state
laws/regulatlons governlng retall traolng
 Domestlc establlsbment ano traoe regulatlons, ano
tbose relatlng to lmportatlon/loglstlcs SCM
O Lessons trom rest ot worlo
O Dlscuss tbe usetulness ot creatlng an
lnoepenoent regulator ln tbls sector
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