Contents

• Executive Summary 3
• Introduction 4
• Why To Choose India As An Investment Destination? 5
• Things To Be Cautious About The Indian Economy 7
• Why Into Retail In India? 8
• Problems In Indian Retail 10
• Rules And Regulations 11
• Cultural Differences In Buying Behavior Among Indian And American Consumer 11
• Mode Of Entries Into Indian Retail 12
• What Should Be The Preferred Mode Of Entry? 14
• Conclusion 16
• References 17
• Appendix 19

Description

The following report discusses in details the investment climate in one such BRIC country named India, where an American retail company is planning to open retail outlets. First, it has been reported that the Indian economy is maintaining a steady GDP growth rate of 9% for the past ten years. The report found out that it has been made possible by the opening of the Indian service sector. Indian service sector now contributes to 53% of the nation’s GDP and has created a new class of young middle class Indians who have got a hefty pay package and the intention to pay that extra money in buying luxury items from the super markets. The report has also marked out the differences between the shopping habits of an average American and an American. It will help to guide the US Company to make decisions accordingly.
The report also found out the growth in the Indian retail sector for the past few years and also the prospects of Indian retail industry in the near future. It was also seen that a foreign company can enter Indian retail market in different ways. The modes of entry are different and each company has chosen their mode of entry as per their way of doing business. The report has also tried out to frame some guidelines on what mode of entry the company must take in order to do retail business in India.