UPA-II's Forgotten Promises

Bangalore: UPA Government started its second term three years ago by promising some key reforms. People kept high expectations on the government under the Manmohan Singh when they elected him for the second time. Since then the government took charge of the state but unfortunately some of the key reforms are still pending in the market. Below are those reforms that the market has been eagerly waiting for.

Organized Retail:

India has allowed 100 percent foreign direct investment in cash-and-carry and wholesale stores but FDI in multi-brand through 49 percent ownership has been blocked by allies and opposition parties. Players like WalMart, Carrefour and Tesco could directly enter market and provide more options for the consumers if this was allowed.

Indian market consists of 98 percent of unorganized retail sector. The unorganized sector is dominated by counter-stores and street venders who regard this as a career to survive. Unfortunately many of these retailers are uneducated, unskilled and they never have the means to improve or expand business and to develop the retail sector. Most of these retailers hardly have the support of consumers.

Looking at the long term and short term growth of retail in India, many business giants like Pantaloon Retail, Shopper’s Stop, and Reliance Retail etc. have entered the industry for almost a decade introducing organized retail markets. These giants supply products and services from small, medium and large entrepreneurs and manufacturers from all over India. They have also promoted many international brands in the markets. Many modern retail formats like malls, hypermarkets and supermarkets are common in all major cities now.

Organized retailing has been successful in foreign countries beside this the telecom industry of India has also witnessed profit with the introduction of multiple technologies, removal of market regulations and influx of capital. The penetration in telecom industry has risen from 1 percent to 10 percent now.