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India is in the midst of a retail boom. The sector witnessed
significant transformation in the past decade - from small
unorganised family-owned retail formats to organised retailing.
Indian business houses and manufacturers are setting up retail
formats while real estate companies and venture capitalist are
investing in retail infrastructure. Many international brands have
entered the market. With the growth in organised retailing,
unorganised retailers are fast changing their business models.
However, retailing is one of the few sectors where foreign direct
investment (FDI) is not allowed at present. Stakeholders, trading
associations, politicians, etc. have given various arguments for
and against FDI in retailing. However, such arguments are largely
based on perception and there has not been serious academic
research in this area. To fill this lacuna, this survey-based study
analyses the current retail scenario in India, investigates the
growth across different segments of retailing and evaluates the
likely impact of allowing FDI on various stakeholders in different
retail segments. Experiences of other countries in allowing FDI and
its impact are also discussed. Presently, foreign players are
entering the market through different routes. The entry process and
their perception about the Indian market are analysed. The study
investigates the structural, regulatory, fiscal and other barriers
affecting the performance of retail trade and suggests reforms for
the removal of such barriers. It also provides valuable policy
inputs in terms of the time-frame in and the process through which
the Indian government can open up this sector to FDI so as to
maximise the welfare and minimise the adjustment. It also lists the
conditions that may be imposed on foreign retailers if FDI is
allowed.
Services sector is the largest contributor to India's gross
domestic product (GDP) and GDP growth. The share of services in
international trade, foreign investment inflows and employment has
increased over time. The share of India's trade in services in its
total trade is higher than the global average. Despite the growing
importance of services sector to the Indian economy, the country
does not have a robust institutional mechanism for collecting
information on international trade in services. Non-availability of
accurate database is a major hindrance towards framing appropriate
policy for promoting services sector exports. In this context, the
Directorate General of Commercial Intelligence and Statistics
(DGCI&S), which has been mandated to develop a comprehensive
database on India's trade in services, engaged the Indian Council
for Research on International Economic Relations (ICRIER), to
conduct pilot surveys of four services sectors namely: audiovisual,
logistics, professional and telecommunications services; examine
the institutional and regulatory framework of trade in services
data collection in select countries and make policy
recommendations. The findings of the pilot surveys along with the
issues faced and the way forward are presented in this report. This
report will provide the policymakers a roadmap to develop a robust
institutional and regulatory framework for data collection on trade
in services, learning from the global best practices. The report
will help businesses to understand the country's strengths in
export of services and the key export markets. It will provide
academics and sector experts a detailed analysis of trade in select
services sector.
Globally, there is growing awareness of the adverse impact of
chemical inputs on soil, environment and human health. This has
prompted both developed and developing countries to shift towards
organic farming and organic food products. The Government of India
has been actively supporting organic farming through various
polices and schemes. India has an advantage of producing organic
food products and is among the top 10 global exporters of such
products. The domestic market for organic food products is growing
at a fast pace. Given this background, the objective of this report
is to: (a) understand recent trends and developments in organic
farming globally and the scope for the development of organic
farming in and export of organic food products from India, (b)
identify global best practices in regulations on organic products,
(c) examine the measures taken by the Indian government to support
organic farming and organic food, (d) identify the issues faced by
organic farmers and organic processed food producers, exporters,
importers and other supply chain agents, (e) find the policy gaps,
and (f) make policy recommendations to the government for the
holistic growth of this sector based on global best practices and
the country's own requirements. The report is based on the first
pan-India primary survey of companies and farmers following
different organic certification processes.
India is one of the largest producers of a number of agriculture
products in the world. The country ranks second in the production
of fruits and vegetables in the world, after China. With a growing
domestic population, India is one of the largest consumer bases of
agriculture produce. However the actual availability of agriculture
produce to Indian consumers is low due to huge wastages in the
supply chain. Food supply chain is regarded as one of the priority
sectors for the country and the Indian government is actively
encouraging foreign investors to invest in sectors such as storage
and warehousing, cold chain, packaging, skill development and
research and development in food supply chain. The United Kingdom
is a crucial partner for investments and collaborations in the
sector. Against this backdrop, the report examines opportunities
for collaboration and investment by foreign businesses,
particularly the UK companies in food supply chain in India. Based
on a primary survey in India and in-depth meetings with
stakeholders in the UK, this report identifies the barriers faced
by the UK businesses and other foreign businesses in India and
presents go-to-market strategy for the UK businesses and other
foreign companies in India. The report list the incentives, schemes
and polices of the Indian government in five areas of food supply
chain namely cold chains, storage and warehouses, packaging
technology, skill development and R&D. It also makes policy
recommendations on how to reduce wastage in the supply chain,
benefit farmers, consumers and other stakeholders through modern
supply chain technologies, and facilitate more investment inflows
from the UK and other countries.
India is one of the largest food and grocery markets in the world
and a large consumer of food products. Despite having a rich raw
material base for food products, high food price inflation is
becoming a major challenge facing the country. There is a shortage
of supply due to issues in the food supply chain. The food supply
chain is fragmented and only seven per cent of the perishable
products are being processed. To counter this, the Indian
government is offering several incentives to private and foreign
investors in the food processing sector reflecting the government's
intention to attract investment. The large and unsaturated Indian
market has attracted a number of foreign companies yet the country
has not been able to be a part of their global production networks.
There is a need for reforms in the food supply chain to enable
India to reach out to its unrealised potential. Given this
background, this report examines the opportunities and potential
for international businesses in the food supply chain of India. The
report tries to make international businesses better acquainted
with the Indian market by providing detailed information about the
central and state governments' policies on the food supply chain.
It highlights the barriers faced by international businesses in
India and suggests a go-to-market strategy for international
businesses. The report identifies the current and potential gains
for India from the entry of foreign businesses and makes policy
recommendation based on a clear understanding of the expectations
and experiences of international businesses in India and global
best practices.
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