TESCO IN BETWEEN INDIA COUNTRY AND USA

Tesco In Between India Country and USA



Tesco in between India and U.S.A

Market Attractiveness

Market Attractiveness India

India is considered as the largest democracy across the globe. It is a country that has the second largest population and its industries are growing rapidly. India is the country of the free market that is growing, with a growth rate in 2004 of around 8% of GDP. This has become the world's tenth-largest economy, the second largest economy among developing countries and fourth according to purchasing power parity (Rai, 2006). It also has currency reserves of more than 141,000 million dollars and is the second country, after China, with more population, and that you will have more growth in this field.

Since 1991, the country began a path of liberalization and privatization of the economy. Thus, India would encourage private participation and attract foreign investment, just as initiated a series of economic reforms, tax, employment and banking sector. In a review of the various business opportunities that the country offers to foreign investors indicates the many attractive sectors such as retail, food, automotive, infrastructure, telecommunications , the tourist, the information technology, biotechnology and health, among others. Specifically, India qualifies as more suitable for the food and retail industry. This indicates that the growth of the processed food sector stood at 20% and there are 300 million people who consume them, but is expected to have about 200 million consumers of these products in 2010. It is also a priority for the Indian Government, which allows FDI up to 100% automatically, except alcohol and other items reserved for small areas (Smale, 2003). Since food and several daily consumable goods are sold at Tesco, India becomes an ideal place for the operations of Tesco.

As for the investment point of view, India is a country that can provide profitable returns in the retail business. Indian consumers and their way of living is enhancing day by day. They are become more conscious about brands and high quality goods, but similarly they also look for consumable goods that are of low cost. Investment in India provides an opportunity for any investee with the positive results. The reason behind that is the constant demand for quality and valued goods. Such goods are offered at Tesco that has established itself as one of the leading retailer across the world. The chain of retail supermarkets of Tesco is gaining familiarity across the world due to the dedicated services of Tesco (Osborne & Wallop, 2005).

As the most important positive aspect, Tesco can look for the human value that India provides, in addition to low wages, offers a skilled workforce that creates new opportunities, important tax exemptions on foreign direct investment, great worker identification with the company and the absence of labor disputes. It has also highlighted the ease that exists to communicate in English, as a language is widespread in India, and the technological development of the country. However, as negatives or drawbacks to be overcome ...