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The Middle East Council of Shopping Centres (MECSC), an official body representing major shopping malls in the region would help retailers from the region to get familiar with the Indian retail market through this forum which runs from September 14 to 16 in Mumbai.
According to projections by the Ministry of Commerce in India, retail business in the country will reach $590 billion by 2012 from $322 billion in 2007. A report by ratings agency Crisil says that the Indian retail business is the most fragmented in the world. There are only two per cent organised retailers compared to more than seventy per cent in developed markets. Organised retailing is expected to increase to 10 per cent by 2010. But opening the sector for corporate and foreign investors is strongly opposed by local retailers.
High taxation, red tape, government restrictions on foreign investment and political opposition are some reasons cited by UAE retailers as factors keeping them away from the Indian market.
"The UAE was able to become a retail destination due to its low taxes. In India, the tax rate is a high 30 per cent in some sectors, such as electronics. Opportunities do exist, but UAE retailers are skeptical about big investments because of the high tax rate," said a source from a UAE business group according to a report.
"The event will help Middle East retailers to familiarize themselves with India's most successful shopping centers and high streets, which house some of the top Indian and international brands in fashion, lifestyle, food service, entertainment and more." |