Making It Click

Sector: Retail

It's no secret that, as the world's second most poulous country, India (with 1.2 billion inhabitants) presents big opportunities for consumer brands.

Retail in India is gradually opening up to the world

Half of India's potential consumers are under 25  and 65 per cent are under 35. What's more, India came out top of the global Baseline Profitability Index in 2015. Growth forecasts are up, perceptions of corruption are down and investors are better protected.

While the FMCG sector has been open to 100% foreign direct investment (FDI) since 1991, the country has been cautious about opening the floodgates to FDI in the retail sector due to concerns about the impact of competition on India's ubiquitous mom-and-pop stores. Today 100% FDI is allowed in cash-and-carry (wholesale) and single-brand retail operations. The latter type of investment is, however, subject to rules which require that at least 30% of goods (measured by value) must be sourced from small and medium-sized enterprises in India.

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