Essay On Unorganized Retail

EXECUTIVE SUMMARY It has been said that India has one foot grounded in time-honored traditions and the other fervently striding into the entrepreneurial age. India truly does embrace diversity with a passion like very few places in the world. Retailing in India is slightly different than in developed markets, in that it is divided in to organized and unorganized retail. Organized retail could be described as when trading is taking place under a license or through people that are registered for sales tax or income tax. Unorganized retail is India‘s more traditional style of low-cost retailing, for example, the local kirana shops, owner-manned general stores, convenience stores, hand carts and pavement vendors. This division of the retail sector, which has a very heavy weighting towards, unorganized, is just one of the issues contributing to the sensitive debate on FDI in India at the moment. In 2006 the Government has promoted limited FDI in single brand retailing and has considered opening up further in a phased system with emphasis on joint ventures with domestic players. Studying other countries such as China, where restrictions were initially imposed on the locations and formats in which foreign retailers could operate is also on the agenda of the Indian Government. The Indian

Single Brand- Single-brand retail comprises those retailers selling products “of a ‘single brand’ only, such that products should be sold under the same brand internationally and single-brand product retailing covers only products which are branded during manufacturing. FDI in ‘Single brand’ implies that a retail store with foreign investment can only sell one brand. For example, if Adidas were to obtain permission to retail its flagship brand in India, those retail outlets could only sell products under the Adidas brand and not the Reebok brand, for which separate permission is required. If granted permission, Adidas could sell products under the Reebok brand in separate