Foreign Direct Investment (FDI) in its classic form is defined as a company from one country making a physical investment into building a factory in another country FDI stands for Foreign Direct Investment, a component of a countrys national financial accounts. Foreign direct investment is investment of foreign assets into domestic structures, equipment, and organizations
FDI in multi brand retail trade may be permitted up to 51%, with government approval Minimum amount to be brought in, as FDI, by the foreign investor, would be US $ 100 million Government will have the first right to procurement of agricultural products Locations may be set up only in cities with a population of more than 10 lacs As per 2011 census only 53 cities qualify for FDI in multi-brand retail out of nearly 8000 towns and cities
FDI in retail: ArgumentsFOR AGAINST Reduction in Unemployment in losses retail sectorPositive impact Adverse effect on on modern small retailers and consumers kirana stores Fear of predatoryPositive impact on prices rural economy Not in a calibrated andPositive impact on experimental way farmers
•Computers yesterday, retail today : the bogie of a foreign“invasion” needs to be balanced against the reality of anIndian agro business in urgent need of greater investment.•If FDI in retail can unleash the true potential of theagricultural value chain , we must welcome it.•As far as the kirana stores are concerned let us notunderestimate the Indian ingenuity•Walmart and other foreign retailers can co exist with thesmall shop, each adding to the consumer choices.