New concepts

Even new retailing concepts are emerging especially in the food retail sector where both urban and rural areas stand to benefit. Future developments in organized retailing will result in increased efficiency in the agricultural sector by removing intermediaries in the food supply chain. While urban customers benefit from reduced prices of farm sector goods, rural farmers benefit by the way of higher returns. The sector will also offer enormous direct and indirect employment opportunities. The Indian economy is integrating with the world and yet it has its own dynamics. These concepts have to be implemented properly so that it creates a huge impact and it can do some good for all the customers.

IT companies

The companies are happy with the additive growth which kept hiring 10,000 coders every year. The industry is now developing the competencies needed to win high value projects in new industry verticals. Oodles of cash ITS majors sitting on are also being used to make strategic overseas purchases. And wonder of wonders, miracle of miracles, indian ITS companies are finally serving the domestic IT market. Yet, there is no doubt that the ITS industry's magic moment has passed. ITS companies are becoming like a dull corporate monoliths. Like local pharma companies, they are not engendering real innovation and their value proposition is still rooted in wage arbitrage.

Lack In Certain things

Simultaneous investments in number of industries would exert powerful pressure on the existing resources and this will raise their prices and cost of production. Ultimately the process will lead to inflation. The five year plan clearly exhibits that the country could not check the inflationary trends. All industries have to depend on the same limited supply of productive resources. Unless the supply of factors of production is perfectly elastic, the balanced growth cannot be smooth and in undeveloped countries the supply of factors will not be elastic. Thus the strategy of balanced growth has many practical difficulties in its implementation. Judged from Indian economy, it is not a balanced one.

Retail Sector

India’s sunrise retail sector is witnessing a major transformation as traditional markets make way for modern and developed retail formats. Unlike the experiences in other countries growth, Indian retail is not going to be a staggered and a time taking process. India has already shown the world that how quick it can accustom to hi-tech products and services and will again create a record in setting up world class retail formats. India is going to be one among the best in retail formats and it is going to be a big achievement for India. In the coming years, India should have retail entities that are strong enough to compete with the best in the world.

Balanced growth strategy

The balanced growth strategy assigns a very big and formidable role for the central planning authority in balancing the sectors and monitoring the growth. This is rather a difficult task. With very thin investments in all sectors and with less technology, harmonious development is rather an illusion. The growth targets are not achieved in many individual enterprises. Further this will involve certain social costs such as old skills and trade that would become obsolete and create unemployment, congestion etc. By this, balanced growth will get jeopardised by the problems of its own making. Even taking for granted that people in central planning authority are super men and it is baffling how they take these kind of decisions.

Two Sectors

Travel and tourism are the two sectors that will immensely benefit connecting with retail. Railways offer a plethora of opportunities for the consumer products, brands, retailers, services, leisure and entertainment majors to connect with a large number of passengers. Not only the stations, platforms and subways that railways own and operate, but also 1000s of trains , passenger or goods that offer huge scope for the largest moving media. Rail retailing will provide the logistics and real estate support that is required for the retail industry. Organised retail has tremendous growth potential in the fast expanding Indian economy. Not only will it benefit millions of consumers but also farmers, artisans and manufacturers.

Oil Companies

Oil companies are unable to increase the price of transportation fuels in line with the rising global crude oil prices and they are now looking at an alternate revenue streams as a major reason. Fuel forecourts with 24*7 convenience retail concepts within cities and on the highways with security around offer huge scope. The concept has the potential to create excitement and initiate activities in small towns and cities as well. Most fuel retailers have tied up with catering chains for F&B outlets at petrol stations. Hyper markets that have entered in to the retail petroleum business have met with considerable success due to competitive fuel pricing and discounted prices.

Slowdown in Indian economy

The Indian economy liberalisation and rationalisation procedures have resulted in a high economic growth with a fast expanding base for the hi end services and manufacturing sector. Fresh avenues for good employment to a young and talented population have got disposable incomes that are high and it translates into higher consumption and better opportunities are bound to come. The current slowdown in the Indian economy is notwithstanding and the retail segment in the country seems to be in for a big time expansion led by the business majors and global players.The reports released in April placed India at a dismal number of 44 in the list of preferred destinations of global retailers that are looking to expand.