How are Modi-fied efforts boosting Retail?

Anuj Puri of JLL talks about the impact of new government's initiatives in betterment of retail and what more is expected.
How are Modi-fied efforts boosting Retail?

Prime Minister Narendra Modi’s policies and laws related to retail sector, under his ‘Start-Up India, Stand-Up India’ initiatives have been well received by the retail community. Moreover green signal for Foreign Direct Investment (FDI) has been the much needed catalyst to revive the otherwise sluggish retail scenario.

The Modi government has been instrumental in reviving the overall economic sentiment since the time it was elected to power. The PM’s ongoing initiatives include fast-tracking infrastructure projects, the smart cities mission, tourist circuits, housing for all, etc. These have helped build investor confidence across multiple real estate segments.

Time and again, Modi government has also tried to address concerns of the industry in terms of relaxing FDI norms, making the REIT tax structure less complex, etc. In is a matter of time now for markets to respond to these initiatives and we believe it will likely be a positive response.

The retail sector can look forward to a more cheerful 2016, given some good initiatives taken by the government. In 2015, single-brand retail saw relaxation in sourcing norms, which is expected to rack up foreign direct investment (FDI) inflows in the times to come. Moreover, in the Budget 2016-17, 100 per cent overseas capital was allowed in processed food retailing through the Foreign Investment Promotion Board (FIPB) route.

Already, the FDI inflow in retail trading increased between October 2014 and September 2015 to USD 70.75 million. This – coupled with economic stability, liberalisation of the FDI policy and improving consumer sentiment – is expected to help global brands witness a very conducive environment for investment into Indian retail as well as retail real estate sectors.

Some of the brands that applied for FDI in 2015

Ø  Damiani

Ø  Cartier

Ø  Mont Blanc

Ø  WACOAL

Ø  Forever Living Imports

Some of the foreign brands that entered India in 2015

Ø  Carl’s Jr

Ø  H&M

Ø  Aéropostale

Ø  BCBG Max Azria

Ø  Gap

Ø  G Star Raw

Ø  Asics

Ø  Wendy’s

Ø  Barceló’s

Ø  Jamie’s Italian

Ø  Juicy Couture

With economic stability, liberalisation of FDI policy and improving consumer sentiments global brands are witnessing the conducive environment for investment in retail real estate sector. The government’s push towards the passage of GST in the Parliament will further help in growth of India’s retail sector.

 

The article has been written by Anuj Puri, Chairman & Country Head, JLL India

Publish Date
Not Sponsored
Live: People Reading Now
 
 
 
 
TRENDING ARTICLE
RECOMMENDED FOR YOU