Overview Positive impact of FDI in retail on:1. Technology2. Employment3. Economy4. Consumer5. Other add-ons Conclusion
Indian retailing: Largest employer after agriculture Highest outlet density in world Around 12 mn outlets Still evolving as an industry Long way to go
1. Modern Format retailers: Supermarkets (Foodworld) Hypermarkets (Big Bazaar) Department Stores (S Stop) Specialty Chains (Ikea)1. Traditional Format Retailers: Kirana: Traditional Mom and Pop Stores Street Markets Exclusive /Multiple Brand Outlets
Efficient logistics, production, distribution channels & warehousing technologies. Digital records. Boost in supply chain expertise. Wastage and Storage problems will be resolved.
Jobs & investment in rural areas. Sourcing from MSEs & SSEs. 10 million jobs in industries such as agro-processing and logistics. Improvement in the quality of employment.
Reduced wastage and costs, thus lowering prices. Helpful to small industries and boost incomes. Huge amount of capital inflow in country Large amount of money in terms of taxes. Tackle inflation. Growth of infrastructure.
High safety & quality standard . Improvement in overall shopping experience of consumers. Upgradation of lifestyle & fashion of people. Easy access to international brands.
Curse to local traders & consumers will be benefited. Help farmers secure remunerative prices by eliminating middlemen. Appreciation of rupee.
Thus it can be said that FDI in retail could change the face of Indian retail by offering quality goods at lower prices to the consumers. In addition to this, the presence of global retailers in Indian retail industry will further enhance exports from India as they would also source Indian goods for their international outlets in a big way leading to a remarkable increase in Indian exports.