Rupees To Dollar In Retailing In India

February 19, 2015November 12, 2018 B M 0 Comments

By : Bijoy Kumar Sahoo

Rupees are the barter measurement in exchange of commodity in India so as in foreign where it exchanges dollars and that dollar is in a controversial phase to touch Indian retail market with its FDI concept.
Retailing in India is one of the pillars of its economy and accounts for 14 to 15 percent of its GDP. The Indian retail market is estimated to be US$ 500 billion and one of the top five retail markets in the world by economic value. India is one of the fastest growing retail markets in the world, with 1.2 billion people.
Most Indian shopping happens in open markets or numerous small grocery and retail shops. Shoppers typically wait outside the shop, ask for what they want, and cannot pick or examine a product from the shelf. Access to the shelf or product storage area is limited. Once the shopper requests the food staple or household product they are looking for, the shopkeeper goes to the container or shelf or to the back of the store, brings it out and offers it for sale to the shopper. Often the shopkeeper may substitute the product, claiming that it is similar or equivalent to the product the consumer is asking for. The product typically has no price label in these small retail shops; all packaged products must display the maximum retail price above which the product cannot be sold.But modern or organized retail has all its theory and concept framed after study and following to the western to cater all needs of people under one roof with customized and delighted experience.
As per PWC(Price Waterhouse Cooper) report states that modern retailing has a 5% market share in India with about $27 billion in sales, and is growing at 15 to 20% per year. This scenario will be changed with the entrance of dollar i.e. FDI.
FDI can be defined as a cross border investment, where foreign assets are invested into the organizations of the domestic market excluding the investment in stock. Country seeks FDI to
 Increase investment level and thereby income & employment
 Increase tax revenue of government
 Facilitates transfer of technology
 Encourage managerial revolution through professional management
 Increase exports and reduce import requirements
 Increase competition and break domestic monopolies
 Improves quality and reduces cost of inputs
Impact of FDI in different points of view
 Huge investments in the retail sector will see gainful employment opportunities in agro-processing, sorting, marketing, logistics management and front-end retail.
 At least 10 million jobs will be created in the next three years in the retail sector.
 FDI in retail will help farmer’s secure remunerative prices by eliminating exploitative middlemen.
 Foreign retail majors will ensure effective supply-chain efficiencies. That will also create an opportunity for the local players in retail to learn from them.
 Farmers get greater share of consumer’s pay,
 Retailers directly source goods from farmers,
 Integrating Indian farmers in
 Global Supply-Chain.
 7-10% higher price to farmers than what they get from Mandi
 3-4% incentive for the quality of the produce farmers deliver to Bharti Wal-Mart based on customer requirement
 Expert advice on better crop planning and management
 Efficient crop calendar management aimed at catching early and late seasons for better prices
 Opportunity to maximize and improve income by offering better quality
 Wastage and Storage problems will be resolved,
 Efficient logistics, production, and distribution channels,
 Digital records, Infrastructure
 Distribution and warehousing technologies.
With lot of advancement ,critics of deregulating retail in India are making one or more of the following claims. Independent stores will close, leading to massive job losses. Walmart employs very few people in the United States. If allowed to expand in India as much as Walmart has expanded in the United States, few thousand jobs may be created but millions will be lost.
In principle, governments should not prevent anybody, Indian or foreign, from setting up any business unless there are very good reasons to do so. Hence, unless it can be shown that FDI in retail will do more harm than good for the economy, it should be allowed.
Fears of small shopkeepers getting displaced are vastly exaggerated. When domestic majors were allowed to invest in retail, both supermarket chains and neighbourhood pop-and-mom stores coexisted. It’s not going to be any different when FDI in retail is allowed. Who, after all, will give home delivery? The local kirana. Why would anyone shun them?
All this promises to make the Indian retail market a real happening place in the days ahead while at the same time offering immense business opportunities to the domestic entrepreneurs. In fact, this is likely to transform the whole contours of the India market, making it a part of the overall global market.