While purchasing a product, what’s the first thing you’ll probably look at? Yes, it’s the product’s MRP. But if recent reports are to be believed, the Maximum Retail Price (MRP) printed on products may soon be eliminated. This move from the government is initiated in order to help the global retailers in India.
Usually in foreign countries, the MRP is not printed on each product, but is labelled on the product shelf. Hence, the task of printing the MRP on each product was getting tiresome for single brand retailers who wanted to invest in the Indian market.
A senior government official stated, “Certain single brand retailers that want to invest in the Indian market say that getting an MRP stamp on every item in the store is a cumbersome process.”
In India, the Legal Metrology Act governed by the consumer affairs departments stipulates that products sold through a single brand retail store must bear a price tag.
In order to ease the Foreign Direct Investment (FDI) rules, finance Minister Arun Jaitley had declared the government’s intent to abolish the Foreign Investment Promotion Board and replace it with a new system.
It is certain that the government will focus now on liberalising the process which may encourage investments and allow India to prosper in the global circle. It’ll certainly help in acquiring more customers globally.
However, doing away with this norm wont be an easy task as the government will have to modify certain laws to implement the newly declared rules.
What’s left to be seen is whether this decision will fulfill its goal and help India shine towards global popularity.