FDI in retail storm to skip Gurgaon
Despite being a launch pad for major international brand consumer durables in the country in recent years, Gurgaon doesn't feature among 53 cities listed for introducing the retail boost.Updated: Dec 05, 2011 01:26 IST
The decision on Foreign Direct Investment (FDI) in retail has taken the country by storm, but the Millennium City has less to look forward to.
Despite being a launch pad for major international brand consumer durables in the country in recent years, Gurgaon doesn't feature among 53 cities listed for introducing the retail boost. It has not been categorised as an urban agglomeration for not having the minimum urban population of one million. According to Census 2011, the total population of Gurgaon (both urban and rural) is 15,14,085.
Karan Singh, who runs a kirana store in Gurgaon, sounds relieved. "I am glad our business will not be taken over by the big fishes, at least now."
However, Ritesh Vishwakarma, a sales manager in the FMCG retail business, feels the move is no threat to small stores.
"The conventional kirana stores won't die since they cater to a specific customer segment. People won't go to a big store to buy a packet of milk or a match box," he said. Gurgaon already has a few chains of Indian retailers like Big Bazaar, SRS Value Bazaar, Spencers and others.
Moreover, city realtors who were waiting to cash in the surge in demand for retail format stores and hypermarkets are not a happy lot. The slump in the mall business, which had forced developers to shift to residential and hotel projects, may boom again if FDI in retail happens.
But, the city may now remain untouched amid the changing tide. Real estate consultants say Gurgaon already has surplus retail space and big chains not coming to the city doesn't augur well.
First Published: Dec 05, 2011 01:24 IST