2. 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 country's national financial
accounts. Foreign direct investment is investment of
foreign assets into domestic structures, equipment,
and organizations
4. 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
5. FDI in retail: Arguments
FOR AGAINST
Reduction in Unemployment in
losses retail sector
Positive impact Adverse effect on
on modern small retailers and
consumers kirana stores
Fear of predatory
Positive impact on prices
rural economy
Not in a calibrated and
Positive impact on experimental way
farmers
6. •Computers yesterday, retail today : the bogie of a foreign
“invasion” needs to be balanced against the reality of an
Indian agro business in urgent need of greater investment.
•If FDI in retail can unleash the true potential of the
agricultural value chain , we must welcome it.
•As far as the kirana stores are concerned let us not
underestimate the Indian ingenuity
•Walmart and other foreign retailers can co exist with the
small shop, each adding to the consumer choices.
