Pestel on Retail Sector

Topics: Retailing, Shopping mall Pages: 3 (726 words) Published: August 28, 2011


• Liberal policies of the Indian government make it easier for foreign retailers to compete with Indian retailers thus increasing the competition. Indian government has given signs of dropping its traditionally protectionist stance and opening up its retail market to greater overseas investment. In 2007 it eased restrictions on foreign investment, allowing overseas retailers to own 51% of outlets as long as they sell only single-brand goods.

• Government realizes the need of foreign investment to provide the infrastructure - the warehousing, distribution and processing operations - that are needed to upgrade India's chaotic retail industry. An estimated 50% of the country's fruit and vegetables rot by the roadside before they reach market. • Many politicians still feel they have a duty to protect the livelihoods of the small shopkeepers they represent. • Due to the Indian government structure, the political condition vary from state to state due to the dominance of the state government

• There are 170 reliance fresh stores across the country but the reliance retail is facing political instability in the state like Kerala, west Bengal, Jharkhand and Uttar Pradesh. In these states they have introduced reliance supermarkets.


• Retail industry employs 8% of the working population. Currently the share of retail trade in India's GDP is around 12 per cent, and is estimated to reach 22 per cent by 2010.

• Indian government has estimated the value of retail sector to be increased to 2,00,000 crore and will generate around 12 million retail jobs in the coming years.

• According to Government of India estimate the retail sector is likely to grow to a value of ` 2,00,000 crore (US$45 billion) and could yield 10 to 15 million retail jobs in the coming five years; currently this industry employs 8% of the working population.

• retail trade also has a sky rocketing effect on...
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