China initially restricted FDI to 49% but gradually phased out restrictions after 1992. This lead to foreign retailers pumping in $3 billion into the country and setting up more than 2200 stores. Despite this foreign retailers make up less than 3.5% of retail sales in china underlining the strength and vibrancy of its thriving domestic retail industry. This could very well be the case in India.
China’s success story is a telling example of the domestic retail industry thriving in spite of large infusions of FDI.
3 comments:
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