The India story may have also started pushing overseas brands to reconsider their earlier exit decisions so that they can return to the scene of action, they say.
About a decade ago, in July 2014, when Europe's second-largest retail chain, Carrefour, announced it was shutting its cash-and-carry stores and exiting India after failing to establish a multi-brand business, there was no sign of it making a comeback ever.
However, a few days ago, the French chain announced its re-entry into India through another format, as foreign direct investment (FDI) in multi-brand retail is still a no-go area.
In September 2022, Detroit auto major Ford left India due to tough competition and slow demand during Covid-19. Last week, the American firm declared it would return to Tamil Nadu to restart manufacturing at the Maraimalai plant, about 50 km from Chennai.
Other foreign brands are also re-entering India or making fresh plans to capitalise on the opportunities the country offers.
Iconic American brand Harley-Davidson, which re-entered last year through a joint venture with Hero MotoCorp, and Chinese fastfashion major Shein, which is returning through a tie-up with Reliance Retail, are among others on the list.
Gaurav Marya, chairman of Franchise India, says the Indian consumption story is the biggest in the world and cannot be ignored. Chandrajit Banerjee, director general of the Confederation of Indian Industry (CII), explains that India's large market, fast growth, and successive economic reforms are encouraging foreign investors to explore opportunities here. According to Madan Sabnavis, chief economist with Bank of Baroda, the combination of India's large size and its paceof growth is a big attraction for foreign majors.
Whether it's Carrefour, Ford, or other foreign majors, they are ready to adjust their strategies and design their plans in a way that would address the Indian consumption story, Marya points out.
この記事は Business Standard の September 17, 2024 版に掲載されています。
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この記事は Business Standard の September 17, 2024 版に掲載されています。
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