We all know that India is a thriving market with booming potential and endless opportunities. With the huge size of their population and growing economy, companies have the possibilities of a giant customer base. So far, India has preferred to remain self-sufficient, allowing domestic business to compete and control the market. However, their recent decision to open frontiers to global retail stores such as Wal-mart and Tesco will change the scene. The foreigners are definitely excited!
There are two sides to this story and I am unsure of my stance on the announcement. This decision could be what Indian markets needed. A boost of globalization to increase growth rates of the economy while allowing the country to participate on a global scale. Indian citizens will now have more choice and the competition will drive local businesses to charge lower prices and offer better quality. But then there’s the negatives. What happens to all those local retails like “Big Bazaar” that have been enjoying being market leaders all these years? Will their customers stay loyal? Will local products stand a chance against the multinational? Will India’s retail industry become dependent? All these questions cannot be answered with certainty. Only time will tell. Although…it would be interesting to see joint ventures and partnerships with multinationals and local business. This could turn out to be a win-win situation.
