FDI in RETAIL and its effects
A Presentation By:
• What is RETAIL ?
• What is FDI ?
• Points of proposed FDI in RETAIL
• Positive impacts of FDI
• Negative impacts of FDI
FDI in Retail
What is Retail?
● Sale of goods from individuals
or businesses to the End user.
●Ends of supply chain.
●Types of Retail.
FDI in Retail
What is FDI?
●Direct investment into another country.
◦Merger or acquisition
Points of proposed FDI in RETAIL
• 51% FDI in multi brand Retail.
• 100% FDI in single brand Retail.
• Minimum Investment $100 million.
• 50% in improving the back end infrastructure.
• 30% raw materials from the small and medium enterprises.
• In cities with a minimum population of 10 lakhs.
Positive impacts of FDI
●Create huge employment.
●Prices will come down. ●Farmers to get benefited.
●Benefit for stressed companies. ●Growth of Indian Retail sector.
Negative imacts of FDI
• Displace the unorganized retailers.
• Kill local shops and millions of jobs.
• Marginalize domestic entrepreneurs.
• Create unemployment.
• Creates monopoly.
• Kills Entrepreneurial talent.
• Have positive as well as negative effects.
• Positive points are more power full.
• Good for Indian Retail industry but with some
◦Regulatory frame work.
◦Growth in manufacturing.
• Ministry of Finance, Report of the economic survey,
Government of India, New Delhi (2003-04)
• Political Economy Journal of India.
• Economic and Political Weekly.
• Indian Economic review.
• Journal of International Economics.
• The Economic Times.
• The Times of India.
• The Business Standard.
• Report of The Parliamentary Standing Committee on