Question

Modern retailing approaches are evolving in India, especially in the food sector. It is common practice to shop for groceries in kirana stores, small neighbourhood shops and produce markets operated by entrepreneurs. In these retail outlets, the fruits and vegetables often are not good quality or in good condition, and the shops are not attractive or comfortable for shoppers. The owners are known for being wasteful, buying in small quantities, selling at high prices, lacking storage capability, and having no expertise in inventory control. There are about 12 million of these small family-operated outlets. In addition, there are 200 million pushcart vendors and hawkers who depend on the highly fragmented retail market for their livelihood.
Large Indian corporations have entered the market, such as Reliance Retail Ltd., with 300 stores in 30 cities across India. Some are opening modern North American-style supermarkets and hypermarkets while others are operating chains of produce shops. These stores are air-conditioned, brightly lit and clean, with trained workers. A greater variety of higher quality fruits and vegetables are available. Goods are neatly packaged, accurately weighed, and refrigerated. Most importantly, prices are lower. Modern retailing supply chain practices are being introduced, including distribution efficiency, high technology farming, and waste reduction. Some suggest that the farmers will receive more for their products as middlemen will be eliminated from the supply chain.
Another dimension of this issue is the restriction on foreign retailers’ entry into the Indian market. Foreign retailers cannot sell directly to consumers. To avoid this regulation, foreign corporations are entering at the wholesale level or in joint ventures or partnerships with Indian corporations. For example, Walmart has a joint venture with Bharti Enterprises, an Indian conglomerate. Other foreign retailers are attempting to enter the Indian market, including the U.K.’s Tesco PLC, and France’s Carrefour SA.
The operators of the smaller stores have protested this trend and have called upon government to stop the large corporations from entering the market. They fell that they cannot compete with the new retailers and would become unemployed with no other form of work available to them. The Indian government is monitoring this retail revolution closely and is under political pressure from the small shopkeepers, opposition parties, and socialist groups. There is concern that the arrival of modern retailing reduces the opportunities for self-employment, especially among the poor. The state of Uttar Pradesh even ordered the closing of ten Reliance supermarkets to calm protestors.
Economists argue that the retail market, estimated at US$328 billion, is large enough for both traditional and modern retailers. The liberalization of retail trade in India is not yet a revolution, and barely an evolutionary trend. In November 2012, the Indian government announced that it would allow foreign investments in supermarkets and department stores.
Questions
1. Who are the stakeholders involved and what are their positions? 2. What are the issues relating to business and society? 3. Should foreign corporations be allowed to operate freely in India?

Answer 1

1)

The stakeholders involved and their positions are

Kirana, little family claimed stores and business visionaries - are against the progression of retail exchange India by foreign speculators

Enormous Indian organizations - Most of them in favor and assemble associations with foreign financial specialists

Foreign companies - Since they can't legitimately enter the Indian market, they join forces with the huge partnerships of India which will assist them with utilizing the circulation framework

Ranchers - misused by nearby administrators, will be agreeable to huge stories which would find some kind of harmony to convey them benefits

Customers - lean toward enormous companies for the comfort of shopping

Indian government - Divided between the customers interests, nearby sellers interests, and weight from resistance groups and social gatherings

2.

Issues and dilemmas for Indian business and society

The issues being the neighborhood sellers not having enough information, innovation and assets compared to the large partnerships of India and abroad to contend as far as nature of items and shopping comfort.

Passage off foreign large speculators may make a flood in joblessness rates which are taking off starting today

Ascend in fights and strikes against the present government in the wake of progression of retail exchange

3)

With the above advantages being referenced, permitting foreign financial specialists to exchange may profit a bigger order, and yet government ought to likewise ensure the interests of nearby merchants, at any rate till they develop and move to a greater arrangement.

Till this time, government can permit the foreign speculators into Indian markets with constrained guidelines and guidelines on them.

Government additionally has the alternative to try things out and reclaim the opportunity on the off chance that they feel that it isn't creating anticipated outcomes.

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