FDI IN INDIAN RETAIL SECTOR
SUBMITTED TO:DR.ENID MASIH
SUBMITTED BY:PUJA KUMARI (12MBA018)
MEENAKSHI KESARWANI (12MBA066)
AMREEN ASHFAQ (12MBA044)
FOREIGN DIRECT INVESTMENT
An investment made by a company or entity based in one country,
into a company or entity based in another country.
It is a cross border investment , where the foreign assets are invested
into the organization of the domestic market.
FLOW OF FDI REFLECTS:Capital formation
Formation of new firms and factories
Increase in foreign equity holding in the existing firms.
Mergers and acquisitions of existing firms and factories.
Entities making direct investments typically have a significant degree of
influence and control over the company into which the investment is
India has continually sought to attract FDI from the world’s major
In 1998 and 1999, the Indian national government announced a number
of reforms designed to encourage FDI and present a favorable scenario for
After the invasion of FDI as per the new economic policy, 1991, one side
it has brought huge investment , infrastructure and thus increase the
But on the other hand it has brought a serious thought to the unorganized
FDI IN RETAIL
Retailing is one of the worlds largest private industry where the
foreign assets are invested into the organization of the domestic
Liberalization in FDI have brought massive structuring in retail
industry along with advance employment , organized stores,
availability of quality products at better and cheaper price but on
the other hand it has brought fear to the unorganized Indian
Organized sector includes shopping malls, organized stores etc.
Unorganized sector includes peddlers, street vendors and the
A STUDY ON PEOPLE’S VIEW
ABOUT COMING OF FDI IN
RETAIL SECTOR IN INDIA
REVIEW OF LITERATURE
investment in the retail sector was restricted
under Indian loss till 2011 and does not allow FDI
into multi-brand retail. For single-brand retail outlets
51% FDI was allowed.
Before 2011 India had prevented innovation
and organized competition in its retail industry.
Dr. Manmohan Singh led UPA government allowed
foreign groups to own up to 51% multi-brand
retailers in India.
Single brand retailers such as APPLE and
IKEA can own 100% of the Indian stores.
retail sector employs about 40 million
Indians. FDI would be capable exploiting
economies in procurement, storage and
distribution to out-compete small suppliers. The
immediate and direct effect would be a significant
loss of employment in the small and unorganized
retail trade displaced by the big retail firms.
The study is about to know what affect would be on
Indian retail sector with the coming of FDI.
When only 4 percent of the retail trade in India comes
under the organized retail it becomes essential to evaluate
or assess the viability of FDI taking into consideration not
this 4 percent but the 96 percent which belongs to the
unorganized retail sector.
Annihilation of small scale and self employed lower
middle class will lead to large scale poverty and destitution
because the unorganized sector is absorbing the shocks of
migration and rural distress. It manages by catering to
middle classes in the metropolis. If this market is gone,
they will all be unemployed.
study will be carried out in local market
chowk,civil lines and mahewa (Allahabad).
Why retailers small or big feel insecure with
the coming of FDI in retail?
II. What threats do they feel?
III. How their survival will be threatened?
IV. Number of earning hands in their family.
V. Do retail store owners’ family members have
occupation other than retail store?
required data can be found in Indian open
At most 10 days, when sample size is taken
50,will be required to collect data.
The sample design adopted will be Simple
The techniques applied for collecting data will
be through personal interview.
People’s view – Should FDI
come in retail sector or not
High quality product at
Elimination of black
Huge range of product
Threatens the survival of
They lower the price to
capture the market once
it happens it leads to
only to educated
peoples what about
Opening the retail
market for foreign
Worse impact on
Comparison of the survey
Under the light of above studies made
on people’s view 42% people are in
favor of opening up the FDI in Indian
retail sector whereas 58% people are