Retail strategy to enter rural india

At the same time, rural consumers are coming to the forefront, be it via the Internet or through their television sets. Demographic trends are dominated by two key factors—declining birth rates and a fast-growing older population. Files are delivered directly into your account within a few minutes of purchase. Overview Why buy this report?

Retail strategy to enter rural india

Grants to states and U. However, most of the components of above list are inflexible. Interest payments cannot be reduces unless there is higher growth in the economy.

Pensions are ballooning as there is consistent increase in life expectancy across demographic spectrum of India. In all this, there is significant scope of reduction in subsidies as they are infested rampantly with problem of mis-targeting and leakage.

This can be easily grasped from the fact that just shifting to cash transfers in distribution of subsidized LPG is expected to save annually Rs crore for the exchequer.

Some subsidies led distortion in India: Energy- Groundwater nexus — Agriculture sector is perhaps having most justifiable claim on subsidized inputs given the dismal situation of the farmers in the country.

On these lines, water and electricity for agricultural use are heavily subsidized by state governments. Again, politics seeped into this economic cause and most governments have failed to ensure rational and sustainable use of subsidized water and electricity.

Owing to this, in large parts of India, groundwater is being extracted indiscriminately as electric pump consume electricity that is almost free of cost.

This has led to dramatic fall in groundwater levels. Wells have gone dry at numerous places.

Retailing in India is one of the pillars of its economy and accounts for about 10 percent of its GDP. The Indian retail market is estimated to be US$ billion and one of the top five retail markets in the world by economic value. India is one of the fastest growing retail markets in the world, with billion people. As of , India's retailing industry was essentially owner manned small. Advantage India: A Study of Competitive Position of Organized Retail Industry benjaminpohle.com 58 | Page. But rural areas, which often are literally off the beaten path, pose special challenges. India is liberally peppered with small shops — more than 14 million of them, the overwhelming majority.

Water extracted from deep earth often gets contaminated by arsenic mineral. This, together with erratic monsoon due to climate change, has pushed rural India in deep distress. To remedy this problem, government has plans to separate agriculture feeder network from rest, under Deen Dayal Upadhayay Gram Jyoti Yojna.

This separate agriculture feeder will supply electricity only for a few hours a day. This was first tried by Gujrat and results were encouraging as it had role in making Gujrat a power surplus state, along with arresting continuous decline in groundwater levels.

Subsidized fertilizers — Nutrient Based Subsidy or NBS was introduced in with objective to promote balanced use of fertilizers and to limit fertilizer subsidy of the government.

Idea was to fix subsidy as per nutrients in per Kg in the fertilizer and leave the determination of price to suppliers. Presently Urea is not covered under the scheme due to political compulsions. Consequently subsidized price of Urea remained stagnant even when real costs of production have risen significantly.

On the other hand Potassium and Phosphorous are covered under the scheme and a fixed subsidy as per content of nutrients is given to suppliers and they change Maximum Retail Price as per market signals.

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Secondary and Micronutrients are also covered under the scheme. Instead this can degrade soil and harm crop. Productivity and quality of a crop depends upon use of diversified mix of macro and micronutrients, which vary from soil to soil. While urea consumption has increased from 59 per cent to 66 per cent of total consumption in overper hectare consumption of fertilizer has declined from kg to kg over the same period.

Large part of this went to production and consumption of urea that was not needed at all. Apart from Urea, farmer is not even getting benefit due from NBS in case of subsidized potassium and phosphorus.

Subsidy is provided to manufacturers, who in turn are responsible to pass this subsidy to farmers in form of reduced retail prices. Rather, manufacturers have increased their prices forming a cartel and have usurped subsidy meant for farmers.

It has plans to penalize and cancel registration wrongdoers.

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Another mistargeting of fertilizer is that most of this is consumed by rich farmers of Punjab, Haryana and North West Uttar Pradesh.

Uptake of fertilizers depends a lot on sufficient supply of water to the crop. Cultivation of wheat, Rice and sugarcane at cost of pulses, horticulture crops and coarse but nutritious grains — Consumption patterns in India are shifting rapidly from calorie rich diet to protein and vitamin rich one.

Despite this, protein based diet in India is abnormally expensive. Main source of protein for Indian masses is pulses. Last whole year there was clamour on the issue of skyrocketing prices of pulses.

Pulses are most suitable to be grown in areas of Maharashtra and Madhya Pradesh, yet large parts of these areas are under cultivation of sugarcane. This create two problems — one, it deprives Indians of their source of protein; two, these areas are water deficit and sugarcane is water guzzling crop.

This crop is sucking scarce water rapidly and when monsoon failed again this time, mainly in Marathwada; farmer had no way to escape.India has over 10 million mom-and-pop retail outlets and they do an amazing job of servicing urban and rural neighborhoods with their most common daily needs.

We have assembled a talented group of people specialising in Mergers and Acquisitions and Capital management. Read the latest market research reports and trends on social media, top 10 ratings, media, consumer demand and more. Consumer Lifestyles in India: Consumer confidence is improving since the government’s decision to remove high-value notes from circulation in November.

The Miller Center undertakes a broad range of activities, including developing retail education programs in for undergraduates, stimulating student interest in retail careers, offering continuing education programs, hosting conferences, sponsoring workshops and seminars, serving as an international resource center for retailing and conducting.

Retail strategy to enter rural india

Retailing in India is one of the pillars of its economy and accounts for about 10 percent of its GDP. The Indian retail market is estimated to be US$ billion and one of the top five retail markets in the world by economic value.

India is one of the fastest growing retail markets in the world, with billion people. As of , India's retailing industry was essentially owner manned small.

Insights Daily Current Affairs, 31 May – INSIGHTS