Multi Brand Retailing And Its Policy Implications Economics Essay

Multi distinguish dealing And Its policy Implications Economics hearWith the ongoing wave of globoseistaion, the companies atomic bite 18 overhauling their approach to line practices worlwide in identify to address the Opportunities and Ch wholeenges presented by the Multi Polar human beings. on that pointfore they atomic number 18 moving from stuffy business practices to more than geographical flexible approach and argon reorient their strategies to the external environment. It is believed that contrary enthronement is a key component in the frugal growth of any maturation country. abroad organize Investment (FDI) truly act as catalyst in this context. Indian sell sphere carry a deep prospective for attracting FDI as it is anticipate to grow three times the menses levels.i.e.660 US billion $ by 2015.Large Format sellers stupefy diminished the idea of Grow local and sell local. But the latest move by the Indian political science to surr closeer 51% FDI in Multi note selling has attracted a huge reason in the country. It has been argued that the re castings allow for burden in greater benefits to the thriftiness, consumers and farmers alone the concerns give birth been raised by some political parties and look at associations that the outcome would be opposite. Henry Ford, the genius inventor said, Dont find fault, find a remedy. This motto reverberates ever so relevantly in todays Indian sell vault of heaven scenario wish sanitary never before. In this context, the present writing makes a humbled attempt to analyse the debatable issues concerning the influx of FDI in multi make sell and also highlights the ch entirelyenges and threats to alone the players involved in it. This paper also reviews that sufficient safeguards should be pee by the Indian government so that it does non end up in losing proposition.Keywords Foreign Direct Investment, sell intentness, organize sell Industry, Un arrange retail Indust ry, Single spot sell, Multi shuffling retail, E- sell prick I IntroductionIndia is a land of sell Democracy which is characterized by High level of Livelihood by and through Employment, High level of egotism Organisation, Low Capital Input and High Level of Decentralisation. India is the fifth largest Retail mart Globally. Retail contri thates approx from 14%-15% of Indias GDP.India has highest Retail Density in the human with 15 one million million million hand throughlets. A T Kearney, an international management consultancy firm, has admit India as one of the uppermost retail destinations. check to Technopak the Indian Retail deliverance is jump to mature to US$ 94.4 billion by FY12 and India has all the prospective chooseed to sustain this growth. harmonize to a study conducted by PWC, Indian Retail Market currently stood at US $ cd billion in 2009-10 which is approximate to r apiece US $ 573 billion by 2012-13 and is growing 30%-40% per annum.The India retail gro cery is estimated at US$ 470 one thousand million in 2011, contributing for 35% of GDP and is evaluate to rise to US$ 675 Billion by 2016.The trend and the expected Total Retail Market and set up Retail Market in India is exhibited in Graph 1 and Graph 2.Graph 1Graph 2Indian Retail Industry is divided into two sectors Organised and Unorganized Sector. Indian retail grocery blood line is highly dominated by decentralized unorganized market, which accounts for close to 95% of the sales. The sh atomic number 18 of organized sell in India, at around 2%, is too near to the ground, comp ard to 80% in the ground forces, 40% in Thailand, or 20% in China, thus leaving the huge market prospective largely intact. But, organized retail labor is one of the develop sectors with bulky growth potential and with its emergence Indian saving is sure going to gain from soundly capitalized retail industry. Since 1991, Due to Globalisation and Liberalisation, Retail Industry has grown exp onentially in form of Foreign Direct Investment (FDI). Foreign Investment in India is governed by the FDI constitution which is denote by the brass of India and the toll of the Foreign Exchange Management feign (FEMA) 1999, which was notified by Reserve bank of India This notification has been amended from time to time. The Ministry of affair and Industry, Government of India is the nodal agency for monitoring and reviewing the FDI policy on continued basis. The FDI policy is notified through Press Notes by the Secretariat for Industrial Assistance (SIA), division of Industrial insurance policy and Promotion (DIPP). The distant presentors are liberated to invest in India, except few sectors where prior approval from the RBI or Foreign Investment Promotion Board (FIPB) would be obligatory. The Government of India recognizes the signifi tummyt position played by impertinent civilise coronation in accelerating the economic growth of the country and thus started a swing of economic and pecuniary reforms in 1991. India is now planning to initiate the second coevals reforms proposed for a faster assimilation of the Indian economy with the world economy. As an outcome, India has been rapidly altering from a restrictive regime to a extensive one. Many reforms subscribe to been done by Indian Government in this context which is shown in the figure1Figure 1Among the emerging markets, in 2011, India is ranked as the fourth most Attractive Country for Retail Industry as per the Global Retail Development Index which is developed by A.T Kearney on the basis of 25 macroeconomic and retail specific variables. India is expected to lead one of the best retail economies by 2042s chit-chatable to technical talent pool, huge markets and availability of cheap raw material. Some studies confuse also put beforehand that variables bid market size and differences in mover costs were found to be considerable in determining the FDI view as these are very imp ortant in determining the market economies and they cannot be achieved and oppressed till the time market achieves a certain(a) size. (Markusen and Maskus, 1999). Foreign players may invest in the form of Single stigma Retailing and Multi instigant Retailing. Organized retail has live a mall of attention for most of the leading international players. Retailing through formats untold(prenominal) as supermarkets, hypermarkets, department stores and other forte chains are fashion plateing. Indias consumers in general fit in to the middle and lower financial strata of society and twain these segments would desire shopping at multi- shit retail stores which provide them an extensive concoction of price points and options in each product class. A widely held retail companies, 33.6%, cater to the customers falling in Rs degree Celsius,000 to Rs 500,000 income group, followed by 26.2% companies catering Rs 500,000 to Rs 1,000, 000 income group, both of which are emergent segment s in India.As far as shopping behaviour of Indian consumers is concerned, modern outlets are preferred because they associate sport with shopping and now-a-days its a customer delight to go out for shopping and entertainment at the same time (Sinha 2003). Retail stalwarts such as Wal-Mart, Tesco and Marks Spencer commit already make entrance into the Indian retail industry and with multi-billion dollar funds by major household players such as Reliance Retail. The US-based worlds largest retailer Wal-Mart has already recognized its existence in the Indian market through a wholesale cash and carry stores. The company at present operates 17 wholesale cash-and- carry stores under Best Price Modern sell stores in India. This industry is expected to go from strength to strength and have b rightfield future as a number of drivers are aiding the festering of the Industry such as improved levels of income and increasing purchasing superpower etc. In 2006,Indian government sanctioned FDI up to 51% in single brand retail now this cap has been increased to 100%,last year in November,2011,union cabinet allowed FDI up to 51% in multi brand retail, but this reform was put on hold as can of opposition and protest was generated by mingled nominate governments, political parties like Trinomial congress, piffling shopkeepers, small traders, trading associations, industrial associations on certain railyard which has compelled Indian government to scrutinize the long term implications of organized retail in India. The government is geared up with the policy and the verdict has already been yieldted by the cabinet it is lone(prenominal) the amour of removing the finger from the pause button.In this backdrop the Objective of the study isTo discuss the present status and Policy Implications of FDI in Multi stag Retailing.To Highlight the Major Controversies relating to FDI in Multi Brand Retailing in India.To Discuss the Challenges and Threats to the Foreign Retailer s and Domestic Retailers.To provide various Suggestions to all the effected Players through approval of FDI in Multi Brand Retailing.To achieve the objectives of the study, the paper is divided into following sections region I, the present section gives an overview of FDI in Organised Retail in India followed by segmentation II which contains Review of literary productions. SECTION III exhibits the Present Status and the policy implications of FDI in Multi Brand Retailing and also highlights the Major Controversies relating to FDI in Multi Brand Retailng.SECTION IV Highlights the views of the Indian Government and the Foreign Retailers on the Issue followed by SECTION V states the Challenges and Threats which all the Players may encounter with. SECTION VI provides some Suggestions and Recommendations on the matter and SECTION VII entails the Conclusion followed by SECTION VIII gives the dilate about the References used in the study.SECTION II Review of LiteratureReardon and Hopk ins, 2006 Reardon and Berdegue, 2007 states that in underdeveloped countries Modern Retail arrived in Three ensuant jounces. In the early hours of nineties, the First Wave took place in sec America, East Asia, China, North Central europium and South Africa. The Second Wave took place in late 1990s in Mexico, Central atomic number 63 and Third Wave happened in the late 1990s and early 2000s in Africa, Central and South America, South East Asia, China India, Russia.They also state that the Third Wave Countries lagged behind due to the severe Foreign Policy on FDI in Retail Industry. China and Russia liberalized their FDI policy in 1990s and India did in early 2000s.In 2006, India sanctioned 51% in Single Brand Retail Joint Venture, but Multi Brand was still in overturn at that time too.Koshy, Joseph, Partner, Joseph and Joseph law office describes in their article, FDI in Retail Sector, 2006 that Indian government has permitted FDI in several sectors but FDI in retail has been i n debate in the country as it had been opposed by many an(prenominal) call forth Government and Leftist. According to Report, Corporate Hijack of Retail-Retail one-man rule Vs Retail Democracy by Navdanya/Research foundation for Science, Technology and Ecology, the entry of titan Corporations like Wal-Mart etc in the Indian Retail Industry impart have undeviating impact on 650 million Indian farmers. A Report (Oligopoly Tnc, 2005, the ETC group) states that the main ener traceic forces in the Food Retail Sector are the Cut Throat Antagonism and Global Integration. If monster Retail chains get footing in India, it bequeath lead to disarticulation of small retailers and farmers.Dr Mandeep Singh, Associate Prof of Economics, The Earth Institute of Colombia University states in his article FDI in retailing in india, 2010, that the entry gate of FDI regime should be in phased manner as household retailers pauperization equal time limit to adjust changes and compete with world-w ide retail giants. A publication by ICT by IANS, Theindian.com co. ltd, 2010 reveals the view point of heads of various Giant Retailers.FDI in Multi Brand Retailing Time to expand the Horizons by Parekh, Paresh, Mumbai Agency, DNA, 2010 states that it is necessary to differentiate the Foreign Financial Institutions and Foreign Retailers for permitting FDI as Foreign Financial Institutions bring right talent and know how along with the capital which may be more pertinent to the profitable business in the sector. It also argues that Indian organised retailers may require finance for private equity than a deliberate alliance with inappropriate retailers. It just predicts that it is worth debating whether to place conditions before permitting FDI like awkward meshing creation, mandatory investment in back end al-Qaeda.Mukherjee and Patel,2005 reveal in their study that FDI through organised retailing have optimistic effect on the Indian industry in form of easy access to finance and spheric best serve through joint ventures Joseph and N sundarrajan,2009(the Indian council for research on international economic relations,ICRIER)in their study that only 17% of small shops were shut down due to competition from organised retailing. Through adoption of better business apply and engine room, home(prenominal) retailers have competed effectively in opposition to organised retail. There has been an optimistic spill over effect on the Indian economy as its possession advantages get dispersal to household enterprises, at that placeby enhancing their productivity.SECTION III Present Status of FDI in Multi Brand Retailing in India and the Major Controversies relating to it and its Policy Implications.1. Present Status and Proposal as finalised by Indian GovernmentIndian government has undecided Indian economy for global players as a part of an accord with World trade organisation (WTO) and also cheering foreign direct investment into the territory. afterwards a llowing 100% FDI in Single Brand Retailing, in 2011, UPA Government has allowed the stopping point of FDI in Multi Brand Retailing. The following proposal has been finalised by the government on this controversial issueGovernment has legalized up to 51% of foreign direct investment (FDI) in multi brand retail trade.Fresh agricultural get up including fruits, vegetables, flowers, grains, pulses, fresh poultry, fishery, meat products etc may be unbranded.Minimum amount of US $ 100 million is to be brought in by foreign retailers.Out of the total amount brought in by foreign retailers at least 50% shall be invested in the back end infrastructure i.e. towards touch ,manufacturing ,distribution ,design improvement, tint control, packaging, logistic etc.At least 30% of make or processed products shall be procured from small domestic industries by the foreign retailers which have the total investment not exceeding US $ 1 million (without providing depreciation).Retail stores shall be established only in cities with state of more than 10 lakhs as per 2011 census and shall also cover subject field of 10 kilometres around the municipal/urban agglomeration limits of such cities.2. Controversies relating to FDI in Multi Brand RetailingMany Opponent political parties mainly BJP and Trinamool Congress have strongly protested against this decision. The most inopportune part is the UPA Governments validation of execution actions to be kept invulnerable from parliamentary approval. Quit FDI Day was observed on 9th august, 2012 to protest against FDI in multi brand retailing by staging dharnas. According to Praveen Khandelwal, Secretary General of Confederation of All India Traders, foreign investments by global giant retailers would lead to closure of small business and lakhs of people giveing be jobless. He further added that its highly undemocratic if Government result form an accord without traders assent. This issue have been encircled by number of controversies. The predicament arises whether opening up of FDI in multi-brand retail get out build problems or endow with opportunities to local retailers. There is no appropriate chemical reaction and apparent views have been seen in the favour and against FDI in multi-brand retailing. Some of the controversies are listed belowFigure 21. Do India really need foreign retailers?ACTUALITY Indian economy is small with restricted superfluous capital and is already in force on budget deficit. India need trillions of dollars to build its infrastructure and other facilities, its simply not probable to back this expansion by domestic investors and Indian government, in that locationfore international investment capital through FDI in obligatory. Apart from capital, Indian retail industry also call for knowledge and global amalgamation which can only be brought in by global retail leaders which can potentially unlock export markets for domestic farmers and producers.2. Entry of Foreign Retailers in Mu lti Brand retailing will impact Indian Agrarian Community?3. Entry of Giant Retailer will result in Shutting down of self-governing stores leading to enormous job press releasees, only few jobs would be created but millions will be vanished?ACTUALITY Instead of job losses, retail reforms are probable to bring gigantic advancement in the Indian jobs as organised retail will call for workforce then millions of additional jobs will be formed during the building of and the maintence of retail stores,roads,cold storage centres, software industry and other retail supporting organisations.Walmart alone would employ 5.6 million citizens if it swell in India as much as their charisma in the USA and also if the staffing level is reserved at the same level as in the US stores. The accepted jobs in prospect Indian organised retail would total over 85 million.4. Foreign players may practise dumping, get competition out of the way as they may become monopoly and raise prices?ACTUALITY Since 30 years, over 350 global retail companies like Wal-Mart, Carrefour, Tesco, coop etc with annual sales over $ 1 billion have operated in several countries. Competition between Wal-Mart like retailers has set aside pabulum prices in check. Country like Canada credits its near to the ground swelling rates to Wal-Mart outcome. Price inflation in such countries has been 5-10 times lesser than price inflation in India. The consumer price inflation in Europe and US is less than 2% in comparison to Indias double physical body Inflation.Anti- Trust Laws and State Regulations like in Indian penal encrypt have prevented Food Monopolies all over the world.5. Indians will work troublesome and foreigners will reap profits?ACTUALITY With execution of 51% FDI limit in Multi Brand Retailing, just about half of the returns will remain in India as profits will be subject to assesses which will mow down the Budget Deficit of Indian Government. Eventually, retail companies will get returns all th e way through hard work and by creating value.6. turn over Giant Retailers be able to avoid Pollution in terms of Carbon Footprints?ACTUALITY This question has mix response as India is already reeling with managing environmental crisis. India would not be able to avoid polluting more with the advent of large scale retail chains in India and it would make even harder to get hold of global norms. According to a survey, the Net GHG( Green House Gas) discharge of 2005 of major Retailers -Wal-Mart, Carrefour, Tesco collectively was about 20 million metric tonnes which is agree to the 80 most polluting countries in the world.SECTION IV Views of the Major Players1. What Indian Government say on FDI in Multi Brand Retailing?Inspite of take of strong opposition on FDI in multi brand retailing, Indian government has been trying to counterfeit an accord on this extremely contentious issue, but several states still remain opposed to this idea. Till now only 10-11 Indian states and union t erritories like Delhi, Uttrakhand, Manipur, and Rajasthan etc have supported the centres decision to permit FDI in Multi Brand Retailing. Delhis Chief Minister, Shiela Dikshit stated that FDI in Multi Brand retailing will benefit the Indian economy in many ways. She further states that this proposal would tending in improving infrastructure, reduce waste, minimize the role of middlemen, reduce food inflation, stabilize prices, improve Agro Commodities management address gaps relating to digest harvest infrastructure. The Indian Government need FDI to meet its foreign re-sentencing requirements and government also believes that only global retailers can satisfy the uprise and varied demands of Indian consumers.FDI in Multi Brand Retailing would improve the farming(a) Marketing, Revenue to the Government could also increase as large administer of Indian sector is unorganised and has low tax compliance. Profound FDI in the Multi-Brand Retail sector will upshot in gainful employme nt opportunities in agro-processing, sorting, marketing, logistics management and front-end retail management. In the next three years, token(prenominal) 10 million jobs will be produced in the retail sector. It will assist farmers to get prices over the MSP by omitting manipulative middlemen. MNC Retailers and Foreign Retail Giants will make certain bestow chain efficiencies for incessant cater of the products. Policy to make an urge for investing b formatline of $100 million and out of which at least half the amount must be invested in back-end infrastructure, including cold chains storages, refrigeration, transportation, packing, sorting and processing which would in spades help in condensing post-harvest losses and costs. A condition to acquire minimum of 30% of goods from Indian micro and small industry will pull ahead domestic manufacturing, thereby creating a manifold outcome for employment, technology up gradation and income creation. At the World Economic Forum 2012 in Davos, Indias duty and Industry Minister Anand Sharma told Wal-Mart president Doug McMillon and Metro board member Frans ruminator that Indias resolution to put foreign direct investment (FDI) in multi-brand retail on hold was just a pause strained by opposition. He further stated that the government is committed to take forward the reform agenda as the Indian retail market has massive scope for growth and development but many Indian retailers eccentric a crunch in terms of financial support and supply chain management.So foreign players can come in and help them. He also said that FDI in multi brand retailing will not only improve the quality of goods but it will also promote competitiveness. He also made a statement that no state will be forced to put into practice FDI in Multi Brand retailing.Uttrakand Chief Minister Vijay Bahuguna also favoured FDI in Multi Brand retailing byword that availability of Cold Storages and Proper Marketing Facilities will reduce the vituperate to the Agri-Horticulture-Organic produce which would ultimately result in increase in the income of rural farmers. The Deputy Chairman of the Planning Commission, Mr Montek Singh Ahluwalia also totally favours opening up of the sector for FDI.Apart from Trinamool Congress the idea of FDI in multi brand retailing has been opposed by many other ministers and political parties. Minister of State for Commerce and Industry Jyotiraditya Scindia stated his view to the Rajya Sabha in written that without adequate safeguards FDI in multi-brand retail will lead to prevalent disarticulation and poor interposition of Indian workers in retail, logistics, agriculture and manufacturing. A written petition has been filed by Vandana Shiva, an NGO activist, in the Delhi High Court alleging that Bharti Wal-Mart and Bharti Retail are right off and indirectly carrying out retail trading in multi-brand in conflict of the FDI policy.BJP is also opposing entry of Foreign Direct Investment in multi-brand retail in the country on the ground that it will be an injustice to small traders.BJP leader LK Advani also said that sanctioning foreign brands to do retail trade in India is an injustice to retailers as it leave many small traders jobless.BJP President Nitin Gadkari stated that the countrys economic condition is in a sorry state because of UPA governments erroneous economic policies, crooked practices and visionless leadership. origin BJP National President Rajnath Singh claimed that, If FDI is introduced in retail sector it will break the backbone of Indian economy. According to Mr Viren Shah, President of Federation of Retail Traders upbeat Association and Mr B.C. Bhartia, National Federation of All India Traders, with the Entry of Global Giant Retailers into Multi Brand Retailing, the interests of the small retailers would be compromised.2. What Foreign Retailers say on FDI in Multi Brand Retailing?The President and CEO of Wal-Mart International, Mr Doug McMillon said at the World Economic Forums Annual Meeting that FDI in Multi Brand Retailing will not impact the fortunes of small shopkeepers. He further stated by giving an example that after 20 years of retail business in Mexico,50% of retailing in Mexico is still done informally and cultism of shutting down of independent and kirana stores is overstated. He also admitted that run in India would pose challenges due to Regulations and High Real Estate prices in India. According to the CEO of US based Discount Department FDI in Multi Brand Retailing will help address inflation concerns for consumers as well as it will benefit the farmers in India.SECTION V Challenges and Threats to the PlayersRetail industry is the second largest employer in India and has remarkable growth potential and on the other hand foreign players have deeper pockets, ability and are in need to invest constantly to enlarge. In economies like china and japan,the retail industry are slowly reaching towards saturation point and ma ny retailer are confronting increasing margin pressures. so,global giant retailers are attracted towards developing economies like India which is mounting at a hasty velocity. Global retailers are interested to invest in India due to increasing urbanisation and comfortable consumer base.FDI in multi brand retailing will generate employment opportunities, income, technology transfer and economic stability but still there are several factors like government regulations, lack of ample infrastructure and light investments are the probable bottlenecks for retail companies. It may pose advantages as well as challenge for domestic retailer, foreign retailers and also for the Indian government. Therefore some of the challenges and threats are listed below in this context.FDI in Multi Brand retailing may lead to large scale disarticulation of employed in retail sector due to unfair competition which may eventually result in mass departure of domestic retailers.The domestic retailers may no t be able to endure in the ex-parte competition as the Indian retail sector especially organised is in an embryonic stage.The animate firms may mislay their self competitive potency if they join forces with global biggies.Any MNC going to set up a multi-brand retail store across India will have to countenance vast licensing obligations in each state of its operation which could be a major obstacle in the way of FDI in multi-brand retail, they will have to get approval for investment as well from the central regulatory authority which, at present, is the Foreign investment promotion Board (FIPB).The foreign players may encounter Red-Tapism as prior to investment approval their application has to pass through various transfer channels which is highly subjugated by bureaucrats resulting in blockage in decision making leading to disinterested corporate giants.Although there are number of anti-corruption cells and acts in India but still corruption could be a major obstacle for foreign investors.No doubt there is availability of cheap tire out in India but most of them are unskilled and so foreign investors may require to provide information and development to them to administer advance retail chains.In 2008-10, rigorous financial damage was caused to investors worldwide due to inflation but Indian economy remained modest affected because of partial open economy. But FDI in multi brand retailing would escort to persistent threats due to revolution in business cycles of global partners.Today India already has foreign debt, trade deficit and current account deficit which mean nearly all resources and transactions in India are owned or financed by Foreign Nations resulting in violent death of Indian rupee due to Foreign Currency influence which can be witnessed in revolt Commodity Prices, Rising Fuel Prices and Rising Debts. FDI in retail may impact Indian small and middling Manufacturing sector which is already dented by China Products which will further them meet.In current Inflation Stricken Economy, Indian Government need to be careful while permitting FDI in Muti-Brand Retailing as it fears to hurt the sentiments of Middlemen, Farmers and Owners of mom and pop stores.SECTION VI Suggestions and RecommendationsBeing a controversial issue, no doubt Foreign Direct Investment (FDI) in Multi Brand Retailing is expected to transform the Indian Retail landscape in a noteworthy way. The global organised players would bring in the much requisite investment that would incite the further growth of the sector which is specially important for nourishment of some of the domestic retailers which lack requisite resources to take in out the storm during an economic slump. The technical know-how, global best practices, quality standards and cost competitiveness brought forth through FDI would portend well for the domestic players to harvest the necessary support to protract their growth. The infrastructure support would definitely help to improve the backend processes of the supply chain and enable to purge wastages and affix the operational efficiency.FDI in multi-brand retail would in no way scupper the employed in the unorganised retail sector. On the contrary, it would pilot to the caprice of millions of jobs as substantial infrastructure capabilities would be needed to cater to the changing lifestyle needs of the urban Indian who is keen on allocating the expendable income. The numerous intermediaries would be restricted and the farmers would get to enjoy a big share of the pie. Despite of numerous advantages, this matter has been opposed by many political parties, small traders etc on certain grounds like it may have adverse impact on Agrarian Community, environmental issues, loss of jobs, creation of monopoly and so on. Political parties have opposed to this move pointing that it will be suicidal for small and marginal farmers and would affect thousands of traders in the sector.Hence, FDI in multi brand retailin g is a conflicting and very sensitive matter, therefore the foreign retailers as well as the Indian government need to take rationale decision before implementing proposed reforms. So few suggestions and recommendations are listed below in this regardThe first basic step needed for reforming Indian retail sector is providing it an industry status which will not only facilitate better financial processes but also enable prudent practices.Policy clarification is required to authorize giant global players which will augment the confidence of the foreign investors and the sector should be opened for giant firms in calibrated manner.A serious revision of the labour laws is required to strengthen the retail industry. All laws should be suitably changed and slightly modified.The government should provide a Single Window Clearance constitution which will rationalize license process allied with the establishment and administration of retail stores and a uniform license regim can be impleme nted in all the states.The government can create retail and entertainment zones (REZ) similar to SEZ and necessary exemptions like stamp duty, octroi etc could be provided to foreign retailers operating within them which will help in reducing prices.A tax incentive in the form of 100% deduction on uptake incurred on the employment of fresh personnel and weighted deduction for hire made by retailers towards training and development to their staff in order to improve their expertise can be allowed. This will help in promoting employment in the retail sector.Government must assist in creation of farmer coopera