How do the new policies affect the predictions and will the new entrants benefit from the same?

But how far are these predictions true with the new policies and the signal that retail trade sector may not be opened any further by the government in order to protect the interests of small traders as the retail industry is the second largest employer after agriculture. Also with Parliamentary Standing Committee report opposing the entry of heavyweights into the retail trade, Indian Retailers looking for foreign tie-ups are in a cautious mood. Faced with the double-edged sword of slowdown and Government policies restricting stake dilution, retailers and market analysts observe that foreign inflow and technical know-how, crucial to the business, could be hampered,And how does this really effect the entrant of big international players which had been eyeing India as a big retail market? Ikea has already dropped its India plan although there have been studies showing that opening the retail trade sector does not really indicate any decline in overall employment in the unorganized sector as a result of the entry of large companies into the business and it also shows that farmers actually benefit “significantly” by selling directly to organized retailers with a profit realization of about 60 percent higher than that received from selling in the mandi (wholesale market),” as per the Icrier report.

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