Retail Boom in India

India is undergoing a big retail boom where lot of foreign direct investment is gaining momentum. India is the country which is famous for its populated unorganised retail marketing sector which includes kirana shop, individual vendors etc. But recently voices are raised by this sector against the brand retailers who are sprouting up in the country.
These Indian retailers again locking hands with global retail giants thus world’s top brands are flowing into the market. Indian consumers whose purse is bulging are in shopping mania. With this, easy consumer credit pay the way to retail boom.
Indian government’s permission for 51 per cent FDI in single-brand retailing attracted the global giants such as Nokia, Levi, Sony etc. With this the multi-brand retailers like Wal-Mart and Carrefour cannot yet hold majority stakes in retail business in India. But now these giants are entering into country’s potential market through partnerships with Indian players.
They are providing the thirsty consumers a rich shopping experience combined with entertainment. Above that they are providing attractive discount schemes. So it is easy for the retailers to gain advantage.
From the government point of view organised retail set up adds revenue through backward linkages in production and manufacturing and the volume gain in both retail and exports.
At the outset this big retail malls are operating in a win – win situation for self, consumers and the government.
On the other side, what is the fate of small shop owners and unroganised segments’ business? Some fear that this segment business will be wiped out. Some other economists strongly argue that there is enough space for the two segments to co-exist and grow.
Next what will happen to our raw materials? Is it only meant for export purpose? (Already Walmart has been sourcing about $1.5 billion worth of goods from the country.