India’s retail sector has seen many developments in the last two decades. From a market that had been largely dominated by small traders/kirana stores, India has seen the growth of organised retail and recently, the growth of e-commerce, both Business-to-Business (B2B) and Business-to-Consumer(B2C). While in most countries, these are but different models of the same business (of e-commerce), in India these classifications have different ramifications vis-a-vis foreign direct investment (FDI) participation and policy constraints. In order to understand the full power of the e-commerce sector and specifically the merits of allowing FDI in the B2C segment, this study conducted a detailed primary survey of kirana stores and of the MSME sector. The objective of the study is also to examine some of the common perceptions expressed by stakeholders, specifically, if FDI in e-commerce has resulted in the decline of turnover and/or profit for the traders, and if e-commerce has had any positive impact on the manufacturing sector.
Pahlé India Foundation
Putting India First to Make India First
