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Annual Review

Challenges to organized retailing

This chapter provides insight on the challenges confronted by the Indian Retail Sector. Following points are covered in the chapter:

  • Main challenges confronting the retail industry are rising costs, multiple taxes, shrinkage, opposition to organised retail, increasing operating expenses, reduced margins etc.
  • The real estate-related issues like the unavailability of prime retailing locations and high rental costs remains a constraint to the growth of Indian retailers.
  • The licensing & regulatory requirements, with approximately 25-30 licenses required for the set-up or expansion of the retail operations, have both financial as well as non-financial implications on the retailers.
  • Non-uniformity in the taxation structure of various states in relation to taxes has deterred the growth of an efficient supply chain management system and has resulted in a differential pricing of the same product across states.

Impact Analysis

  • Foreign Direct Investments in the Indian Retail Industry

    In another landmark decision for the Indian retail industry, the cabinet approved the DIPP's proposal of permitting 51% FDI in multi brand retail in I.....

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  • Indian Retail Industry – “Rising PFCE and increasing discretionary spend to catalyze Indian Retail growth”

    CARE Research expects the PFCE to play an imperative role in driving the growth of Indian retailing. CARE Research estimates the PFCE to record a grow.....

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Services Coverage

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