Fdi in indian retail sector0......docx

1. FDI IN Indian Retail Sector
Name: Mohammed Gaus
Course Name and Number: EBM640
Date: 16th-Nov-2013
Instructor’s Name. K.R Kaushik
MAII Stratford University

2. Objective
Foreign direct
investment (FDI) Retail Sector
SINGLE AND
MULTI BRAND
RETAIL
PRESENT
SHAPE OF FDI
Advantages
Disadvantages
Conclusions &
Suggestions

3. Foreign direct investment (FDI)
A source of capital and investment
involving foreign control of production
A source of exploitation of Recourse
A channel of technology transfer and
industrial development

4. Retail Sector
According to Philip Kotler
“retailing includes all the
activities involved is selling
goods or Service directly to
final consumers for
personal.

5. SINGLE AND MULTI BRAND RETAIL
SINGLE BRAND RETAIL :
•It implies that a retail store with foreign investment can only sell one brand.
•Eg: Nokia , Reebok and Adidas Only
MULTI BRAND RETAIL :
•Retail store can sell multiple brands under one roof.
•Global retailers like Wal– Mart & Tesco can open stores offering a wide range of
household items and grocery directly to consumers in the same way as the “ Kirana”
stores.

6. PRESENT SHAPE OF FDI
Retail industry – Second largest employer ( with an estimated 35 million people engaged by
the industry).
New policy will allow multi brand foreign retailers to set up shop only in cities with a
population of more than 10 lakhs as per the 2011 census.( there are 53 such cities)
Foreign retailers will be required to put up 50% of total FDI in infrastructure .
Investor will need to source atleast 30% of manufactured or processed products from small
retailers
According to the newspaper MINT– US has said that FDI in retail trade would be beneficial
to both India and U.S.
In Jan 2012 SINGLE BRAND FDI hiked to 100 % from 51%.

7. Advantages
INDIAN FARMERS
• Farmers will be the biggest beneficiary of FDI in retail who will be able
to improve their productivity.
PARTERNSHIP OPPORTUNITY
• Indian Retailers have reason to be happy as it involves a lot of
learning that could take them to higher profitability.

8. Disadvantages
The new system
will displace the
traditional shops
and petty retail
shops in
markets and
mohallahs.
There will be greatest possibility
for competition for the small
shop keepers in town or villages

9. Conclusion and Suggestions.
Higher Incomes
Favorable Demographies
Changing Lifestyles and Preferences
Real estate boom

10. Thanks