What are the factors holding back the much-touted retail revolution in India?
A. There are several factors. Raising funds to even set up a retail outlet is impossible. Though things have changed somewhat in the last three years, it is far easier to raise funds to put up a factory than to put up a retail chain. Development banking institutions like the ICICI or the IDBI were not open to funding retail ventures till recently. Obtaining international funds is even more difficult. The reason is, retailing in India is so disorganised that there are no benchmarks to evaluate viability and profitability. Real estate is the second big limiting factor. While the government is the largest landowner in the country, very little has been done by way of real estate reforms. As real estate prices are sky high, most of the development work is taking place in out-of-town locations, like Gurgaon (just outside Delhi). But the real revolution will take place when the government allows redevelopment of space within the city centre where the consumers traditionally live. For example,
