FDI restrictions to remain - Scindia
2:03 PM | 
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Indian Retail
Scindia enclosed an ICRIER study to back his statement, which pegged the retail trade increase at 10 per cent per annum from US $10 billion in 06-07 to US$ 496 billion in 11-12.
The study nails the growth of the organised retail segment at a sizzling pace of 45-50 percent with an anticipated market share of 16 percent by 2011-12.
Interestingly, the study makes a pitch for opening up the retail trade sector as there was no grounds of employment in the unorganised retail segment being effected by the growth in the organized retail segment.
The study is also of the belief that Farmers and consumers both will benefit significantly by the farmers selling straight to the organized retail merchants.
The ICRIER report says that farmers selling direct to the organised retail merchants realizes upto 60% more profits than sellling to middlemen such as the mandi's (wholesale markets).
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Will FDI in retail become a reality?
"Only a small proportion of general trade, which is in close proximity to modern trade, would be partially affected by FDI in retail. It is not a zero-sum game. Our belief is that the share of organized retail will go down but the volumes certainly will not be impacted by opening up of the retail sector,"
I believe it is time to open up.
Impact on organized retail with the UPA government retaining power
We all know organized retail has the biggest potential as Indian retail is only about 6% organized at this time. The UPA government now needs to start thinking and formulating strategies for the following -
2. Provide clarity on FDI
3. Put retail on fast track as this will bring in foreign investment and much needed growth impetus to associated sectors such as infrastructure.
Rolex plans exclusive stores in India
Mahen Boutiques, a wholly-owned subsidiary of KKDL, would be the Indian partner for setting up the stores for selling wrist watches to the high-end consumers in major cities.
Mahen Boutiques has submitted its proposal to the Department of Industrial Policy and Promotion (DIPP) seeking permission for the retail venture, an official said.
While India does not allow foreign direct investment in multi-brand retail stores like those of Wal-Mart, 51 per cent FDI in single brand retail stores like those for Nike shoes, Nokia cell phones, Louis Vuitton and Rolex watches is permitted.
Contact with Rolex firm could not be established.
Golfer Jeev Milkha Singh is the brand ambassador for Rolex watches in India.
These watches are priced upward of Rs 5,000 a piece.
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