India: the benefits of the new law in multi-brand retail

The new law passed by New Delhi, which will allow foreign direct investment of up to a maximum of 51% in multi-brand retail, will fundamentally change the multi-brand retail sector in India and promises to give a further boost to the Indian economy.

According to a very recent research conducted by CRISIL, as a result of this opening up, local retail will be able to attract investment of US$2.5-3 billion over the next five years, experience growth of 20% and create about 10 million jobs, including 4 direct and 6 indirect. The modernization of the sector will also give consumers more choice, with a wider range of higher quality products.

The most interesting opportunities shaping up in different sectors will be in food, apparel, luxury and electronics.

The reform will serve as a powerful catalyst for the growth of the unorganized market, which currently holds a share within the retail sector of only 4%, compared with 96% for the unorganized market. Through the new law, organized retail could reach 15-20% percent within five years.

For international retailers, great opportunities loom large: India is the largest remaining frontier in retail (in China it is already beginning to saturate), and the sector has already been among the most important and among those with the highest growth potential for years.

For a complete overview of retail in India click here

Manlio Urbano - India law multi-brand retail

ALSO READ:

The success of Italian companies in India

Internationalizing your business abroad: strategic choice or opportunity?

Digital export manager (DEM): internationalization in a digital context