However, curbs on foreign direct investment in the sector are still in place. The sector is yet to receive status as an industry. Internally, the sector lacks efficient supply chain practices.
According to a report by the rating agency Fitch, lack of proper infrastructure along with basic inertia and haphazard initiatives taken by companies have resulted in inefficient supply chain management practices.
Analysts believe that retailers can reap benefits in the future like cost savings and operational efficiencies through better supply chain management.
However, investments would be needed in basic infrastructure like parking, real estate, etc. to the tune of Rs1billion per annum. Given the nascent stage of the industry, most of these investments would be in the form of equity.
Comparable Asian markets like Thailand, Indonesia, China and Malaysia saw emergence of organised retailing in the 1980
