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In addition, various foreign players like Wal-Mart are entering the market via a joint venture with Bharti. Morgan Stanely Research shows that India's organized retail market is likely to grow from the current $ 4 Billion (2.1% of total relevant consumer spending) to 64 Billion (10.8%) by FY 2015.

* Private Final Consumption Expenditure

Source: CEIC, CSO, A C Nielsen, Morgan Stanley Research; E = Morgan Stanley Research Estimates

Competitive markets heightened customer expectation. Supply chain complexity, globalization and an evolving technology scenario are some of the challenges faced by the Indian retail industry today. Retail is a multi-faceted industry serving market segments carrying diverse business needs and service requirements. Forces of globalization, consolidation and customization have significantly changed the traditional retail model. Retailers today are seriously analyzing these multiple challenges while trying to increase sales and achieve profit targets. With retail trade expected to grow at a robust pace in the coming years, could FDI be an effective instrument to fight the obstacles of Globalization, Consolidation and Customization? The answer perhaps, 'yes'.

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* Contributed by: -
Mohd. Yaseen Khan,
Sr. Lecturer,
Institute of Management Studies (IMS) Dehradun, Uttarakhand.