The “build your own supply chain rule” in India

An article in the Business Standard (June 13, 2013 IST) describes a new rule in India that requires foreign retailers entering the country to create new required supply chain infrastructure and stores worth $100 million, with purchases of existing retailer assets not being permitted to be included. This rule slows both the entry of retailers and decreases the value of existing retail infrastructure. Will such a rule decrease the consumer benefit of the new market entrants or merely tilt the scale in the direction of larger retailers ? Will the demand for new infrastructure investments permit more state of the art capability than has existed in the past ? Is this rule merely a drive to create a short term jobs benefit as a result of the increased capital investments with no supply chain benefit ?

About aviyer2010

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