The document discusses FDI (foreign direct investment) in India's retail sector. It provides background on FDI and its history in India. It then discusses India's retail sector and the organized vs unorganized components. The document outlines India's past and current FDI policies, particularly regarding single brand and multi-brand retail. It discusses the views of various individuals and groups who support or oppose allowing FDI in multi-brand retail in India.
This document discusses foreign direct investment (FDI) in multi-brand retail in India. It begins with background on the team members presenting and an outline of the presentation. It then provides definitions of FDI and foreign institutional investment (FII) and distinguishes between the two. The document discusses opportunities for FDI in retail in India such as benefits to farmers and consumers, as well as challenges such as political instability and public opposition. It analyzes the retail sector and provides sector-wise analysis of FDI inflows in India. The document concludes with a comparison of FDI in India and China.
FDI allows foreign investment in retail in India. Single-brand retail allows up to 51% FDI for stores selling a single international brand. Multi-brand retail, which allows foreign stores to sell multiple brands, is currently not permitted. Organized retail makes up 3-4% of the market while 96% is unorganized. FDI could impact unorganized retailers through unfair competition but benefit organized retailers and farmers through better prices and supply chains. It may also benefit consumers through variety and quality while creating jobs. Issues around its impact still need monitoring and regulation.
Foreign direct investment in multi-brand retail trading (MBRT) in India is a current issue. Allowing 51% FDI in MBRT would allow large global retailers like Walmart to set up operations in India. However, there are concerns this could negatively impact small retailers and farmers. The document discusses arguments for and against increased FDI in retail, conditions other countries place on retail FDI, and India's existing FDI policies in retail.
FDI in retail refers to foreign investment in the retail sector of India. The document discusses the various forms of FDI in retail in India - single brand retail allowing up to 51% FDI, cash and carry wholesale allowing 100% FDI, and multi-brand retail which is currently not allowed. It also outlines the debates around the benefits and criticisms of allowing FDI in retail, such as job creation but also threats to small retailers. Overall, it examines both sides of the issue and suggests there are difficult questions for policymakers to address around how best to leverage FDI while supporting domestic industries and employment.
This document discusses FDI in multi-brand retail in India. It provides background on organized and unorganized retail sectors in India currently. It then outlines the history of FDI policies in India for single brand and multi-brand retail, including allowing up to 51% FDI in multi-brand retail with certain conditions like minimum investment amounts and sourcing from small local suppliers. The document addresses some of the major controversies around allowing FDI in multi-brand retail in India, such as potential job losses or gains, effects on prices and competition, need for foreign investment, and profits going overseas.
FDI in Indian retail market- oppertunities and challengesGuru Selvan
The document discusses foreign direct investment (FDI) in the Indian retail market, including opportunities and challenges. It notes that India has one of the top five retail markets in the world and allows 100% FDI in single brand retail and cash and carry, as well as 51% FDI in multi-brand retail. The impacts of FDI include accelerated retail market growth, benefits to farmers and consumers, and promotion of competition and infrastructure development. However, challenges include the need for Indian retailers to consolidate, potential job losses, high borrowing costs negatively impacting domestic retailers, and predatory pricing by global retailers wiping out domestic competition.
The document provides an overview of foreign direct investment (FDI) in the retail industry in India. It discusses the benefits of FDI for farmers, suppliers and consumers through improved supply chain management and technology adoption. While FDI can benefit the economy through job creation and lower prices, there are also concerns about its impact on small retailers and employment. The document analyzes both sides of the debate around allowing FDI in multi-brand retail in India.
FDI in Retail in India (Single & Multi Brand)Devansh Parmar
The document discusses foreign direct investment (FDI) in the retail sector in India. It provides background on FDI trends globally and in different countries. FDI in retail was first allowed in India in 2006 in the cash and carry/wholesale sector, then in single brand retail in 2011 and multi-brand retail in select cities in 2012. The retail sector is an important part of the Indian economy, contributing 14-15% to GDP. Supporters argue FDI will boost investment, technology, tax revenue and consumer choice, while critics argue it could displace small retailers and sellers and cost jobs.
This document discusses foreign direct investment (FDI) in multi-brand retail in India. It begins with background on the team members presenting and an outline of the presentation. It then provides definitions of FDI and foreign institutional investment (FII) and distinguishes between the two. The document discusses opportunities for FDI in retail in India such as benefits to farmers and consumers, as well as challenges such as political instability and public opposition. It analyzes the retail sector and provides sector-wise analysis of FDI inflows in India. The document concludes with a comparison of FDI in India and China.
FDI allows foreign investment in retail in India. Single-brand retail allows up to 51% FDI for stores selling a single international brand. Multi-brand retail, which allows foreign stores to sell multiple brands, is currently not permitted. Organized retail makes up 3-4% of the market while 96% is unorganized. FDI could impact unorganized retailers through unfair competition but benefit organized retailers and farmers through better prices and supply chains. It may also benefit consumers through variety and quality while creating jobs. Issues around its impact still need monitoring and regulation.
Foreign direct investment in multi-brand retail trading (MBRT) in India is a current issue. Allowing 51% FDI in MBRT would allow large global retailers like Walmart to set up operations in India. However, there are concerns this could negatively impact small retailers and farmers. The document discusses arguments for and against increased FDI in retail, conditions other countries place on retail FDI, and India's existing FDI policies in retail.
FDI in retail refers to foreign investment in the retail sector of India. The document discusses the various forms of FDI in retail in India - single brand retail allowing up to 51% FDI, cash and carry wholesale allowing 100% FDI, and multi-brand retail which is currently not allowed. It also outlines the debates around the benefits and criticisms of allowing FDI in retail, such as job creation but also threats to small retailers. Overall, it examines both sides of the issue and suggests there are difficult questions for policymakers to address around how best to leverage FDI while supporting domestic industries and employment.
This document discusses FDI in multi-brand retail in India. It provides background on organized and unorganized retail sectors in India currently. It then outlines the history of FDI policies in India for single brand and multi-brand retail, including allowing up to 51% FDI in multi-brand retail with certain conditions like minimum investment amounts and sourcing from small local suppliers. The document addresses some of the major controversies around allowing FDI in multi-brand retail in India, such as potential job losses or gains, effects on prices and competition, need for foreign investment, and profits going overseas.
FDI in Indian retail market- oppertunities and challengesGuru Selvan
The document discusses foreign direct investment (FDI) in the Indian retail market, including opportunities and challenges. It notes that India has one of the top five retail markets in the world and allows 100% FDI in single brand retail and cash and carry, as well as 51% FDI in multi-brand retail. The impacts of FDI include accelerated retail market growth, benefits to farmers and consumers, and promotion of competition and infrastructure development. However, challenges include the need for Indian retailers to consolidate, potential job losses, high borrowing costs negatively impacting domestic retailers, and predatory pricing by global retailers wiping out domestic competition.
The document provides an overview of foreign direct investment (FDI) in the retail industry in India. It discusses the benefits of FDI for farmers, suppliers and consumers through improved supply chain management and technology adoption. While FDI can benefit the economy through job creation and lower prices, there are also concerns about its impact on small retailers and employment. The document analyzes both sides of the debate around allowing FDI in multi-brand retail in India.
FDI in Retail in India (Single & Multi Brand)Devansh Parmar
The document discusses foreign direct investment (FDI) in the retail sector in India. It provides background on FDI trends globally and in different countries. FDI in retail was first allowed in India in 2006 in the cash and carry/wholesale sector, then in single brand retail in 2011 and multi-brand retail in select cities in 2012. The retail sector is an important part of the Indian economy, contributing 14-15% to GDP. Supporters argue FDI will boost investment, technology, tax revenue and consumer choice, while critics argue it could displace small retailers and sellers and cost jobs.
This document discusses foreign direct investment (FDI) in retail in India. It provides background on the history of FDI restrictions in India and the government's gradual opening of the retail sector to FDI over time. It also outlines some of the debates around allowing FDI in multi-brand retail, including potential benefits like more options and lower prices for consumers, concerns about impact on small retailers, and issues around sourcing requirements. The document aims to explore both sides of the debate over whether India should further open its retail sector to FDI in multi-brand stores.
FDI in Multi-brand Retail (Issues and Challenges)Abee Sharma
In the year 2012 India faced severe balance of payment and trade deficit. This forced to bring about changes in Foreign Direct Investment [FDI] policy. India is the top most attractive economy for FDI among the rest of economies in world. The government has allowed FDI in to retail outlets owned by their domestic partners in a limited way for on?selling to retail customers. This provides a window to them for benefiting from the retail boom in the country. The present study aims to understand and analyze the challenges and opportunities faced by FDI Inflow and the future outlook towards FDI in multi brand retail Sector. It extrapolates that inward FDI can intensify competition and accelerate the process of innovation in the local Retail Sector. This paper tries to establish the need of the community to invite FDI in multi brand retailing. The final decision in this respect is yet to be taken by the government of India.
FDI in retail has the potential to benefit consumers through more choices, lower prices, and improved quality and supply chain efficiency. However, there are also risks like job losses for small retailers and increased competition. India's retail sector is currently dominated by unorganized and family-run small shops. The document discusses the various formats through which FDI can enter India like franchises, wholesale trading, and manufacturing subsidiaries. It also provides an overview of the growth prospects and impact of organized retail on the Indian economy. While FDI can boost investment and infrastructure, policymakers will need to ensure a level playing field for domestic retailers as well.
1) The document discusses foreign direct investment (FDI) in the retail sector in India, including the types of retail (single brand, multi-brand), current FDI policies that allow up to 100% in single brand and 51% in multi-brand retail, and the impacts of FDI in retail such as increased competition and quality/variety of products.
2) It also outlines trends in FDI, including growth in specialty retail stores, the continued dominance of unorganized traditional retail, and expansion in smaller cities and towns.
3) FDI provides benefits to India like access to markets and technology, but India must also develop infrastructure and skills to encourage investment and benefit from it.
Report on Impact of FDI in Retail in IndiaAkshay Seth
This report talks about the impact of FDI in Retail in India along with critically analyzing the versatility of the regulations which have been recently introduced for Multi Brand Retail
FDI in retail is a controversial issue in India. While it could provide benefits like new technologies, jobs, and infrastructure; there are also concerns it could hurt small farmers and retailers. The government allows 100% FDI in single brands and 51% in multi-brand retail, but places restrictions to protect local interests. It will only be allowed in large cities and foreign companies must source 30% of products domestically. Overall FDI could help India's economy grow, but the effects must be monitored and issues addressed.
This document discusses foreign direct investment (FDI) in India's retail sector. It provides an overview of the retail sector and FDI policy in India. It notes that historically FDI was only allowed up to 51% for single brand retail and 100% for cash and carry wholesale, but the new policy will allow up to 51% for multi-brand retail. The document discusses the opportunities that FDI in retail provides, such as job creation and improvement of supply chain infrastructure, as well as challenges around competition and impact on small retailers. It concludes that FDI in retail will benefit the Indian economy if implemented carefully.
Impact of FDI on retail sector in IndiaKaran Tyagi
Foreign direct investment (FDI) refers to investment from one country into another country. Allowing FDI in India's retail sector could provide benefits like new technologies, capital, and management skills but may threaten small unorganized retailers. India's $250 billion retail sector is mostly unorganized but organized retail is growing at 15-20% annually. Major retailers in India include Pantaloon, Tata, Reliance, and others operating stores like Big Bazaar and Reliance Fresh. Common retail formats are mom-and-pop stores, department stores, shopping malls, e-commerce, discount stores, and vending machines.
The document summarizes the impact of foreign direct investment (FDI) in the retail sector in India. It notes that while FDI in retail can generate employment, increased investment, and benefits for customers through greater competition and variety, it may also displace unorganized local retailers and small businesses. A survey by the Confederation of Indian Industry found that most small and medium enterprises believe FDI in retail would increase their sales and new orders or contracts, though opinions were more mixed on impacts to employment.
FDI or Foreign Direct Investment is a self explanatory term well sort of. In a layman’s language it refers to any monetary investment that is made by an entity in business if any kind on foreign shores.I'am sure this presentation will help you to understand FDI better .
The document discusses FDI in the Indian retail industry. It begins with definitions of FDI and reasons why countries pursue it. It then discusses the global and Indian retail scenarios, noting countries that allow 100% FDI in multi-brand retail. Major retailers in India like Pantaloon are introduced, and retail formats are defined. The document also discusses views on the impact of allowing FDI in multi-brand retail in India, including potential job creation but also threats to small retailers. Government policies on FDI in retail over time are also summarized.
The document discusses foreign direct investment (FDI) in India's retail sector. It notes that India allows 100% FDI in single-brand retail and 51% FDI in multi-brand retail. While organized retail makes up only 4-5% of the sector currently, FDI is projected to increase its size and market share. However, critics argue that large foreign retailers could crush India's 12 million small, unorganized retailers and negatively impact employment. Both benefits like increased investment and jobs, as well as concerns over impact on local businesses and prices, are discussed around allowing FDI in India's large retail industry.
This document discusses the potential effects of foreign direct investment (FDI) in multi-brand retail in India. It covers the historical trends in FDI in India, the current state of FDI, and the organization of India's retail industry. It then analyzes the potential impacts of FDI in multi-brand retail on different stakeholders, including retail workers who may lose jobs, local shopkeepers who may be put out of business, wholesale shopkeepers who will be disintermediated, and producers who may benefit from better market access. The document cautions that while producers may benefit, many retail and supply chain workers are likely to experience job losses or business closures if large foreign retailers enter the market.
This document discusses foreign direct investment (FDI) in the retail sector in India. It begins by defining FDI and describing the different types of retail markets and formats in India. The current FDI policy for retail is outlined, allowing up to 100% in single-brand retail and 51% in multi-brand retail. The advantages and disadvantages of FDI in retail for India are discussed. Recent FDI trends show growth in specialty retail stores, the continued dominance of unorganized retail, and expansion of retail into small cities and towns.
The document discusses recent changes to India's foreign direct investment policy in the retail and construction sectors.
In retail, the policy now allows single brand retailers to sell through both physical stores and e-commerce platforms. It also eases sourcing norms for single brand retailers. For construction, the policy removes minimum investment requirements, allows phases to be treated as separate projects, and introduces an early exit option with a three-year lock-in period.
The changes aim to liberalize and provide more clarity around FDI rules in these sectors to attract more foreign investment and accelerate growth of the Indian economy.
The document discusses foreign direct investment (FDI) in Indian retail. It provides an overview of the global and Indian retail industries. FDI is currently restricted in Indian retail but there are calls to allow it in phases. Allowing FDI could help modernize the industry through technology transfers and increase competition. A case study of China shows retail sales grew significantly after FDI was permitted there. The document recommends granting industry status to retail and permitting FDI in phases to help develop the Indian retail sector.
This document discusses the politics behind allowing foreign direct investment (FDI) in retail in India. It outlines the history of FDI in retail being allowed and rejected by different governments over time for political reasons. While FDI proponents argue it would create jobs and benefit farmers, some political parties oppose it to gain votes or embarrass the ruling Congress party. The decision to allow 51% FDI in multi-brand retail was suspended in 2011 due to political opposition despite its potential economic benefits.
This document discusses FDI in multi-brand retail in India. It provides background on organized and unorganized retail sectors in India. It outlines the government's proposal to allow 51% FDI in multi-brand retail subject to certain conditions like mandatory 30% sourcing from small industries and minimum $100 million investment. It then addresses several controversies around job losses, monopolies, need for foreign retailers, East India Company comparison, and impact on smaller states. It argues that FDI will benefit India through better infrastructure, curbing inflation, preventing labor exploitation and enabling exports. It concludes saying India must be open to change for prosperity.
This document discusses FDI in India's retail sector. It provides an overview of India's retail industry, which is largely unorganized. It then discusses the benefits of FDI, the types of FDI (single brand and multi-brand retail), and the impacts on various stakeholders like farmers, consumers, small businesses and the government. It outlines the debate around the issues like job losses and impact on small retailers. Finally, it discusses the current scenario of FDI in retail in India and provides an overall conclusion that FDI in retail can prove beneficial if implemented properly.
The document discusses Foreign Direct Investment (FDI) in India, specifically in the retail sector. It defines FDI and provides examples of major foreign retailers interested in the Indian market. It outlines the Indian government's policies that allow 51% FDI for multi-brand retail and 100% for single-brand. The document also discusses the types of FDI, sectors that attract FDI in India, and both the advantages and disadvantages of allowing FDI in the retail sector.
This document discusses foreign direct investment (FDI) in retail in India. It provides background on the history of FDI restrictions in India and the government's gradual opening of the retail sector to FDI over time. It also outlines some of the debates around allowing FDI in multi-brand retail, including potential benefits like more options and lower prices for consumers, concerns about impact on small retailers, and issues around sourcing requirements. The document aims to explore both sides of the debate over whether India should further open its retail sector to FDI in multi-brand stores.
FDI in Multi-brand Retail (Issues and Challenges)Abee Sharma
In the year 2012 India faced severe balance of payment and trade deficit. This forced to bring about changes in Foreign Direct Investment [FDI] policy. India is the top most attractive economy for FDI among the rest of economies in world. The government has allowed FDI in to retail outlets owned by their domestic partners in a limited way for on?selling to retail customers. This provides a window to them for benefiting from the retail boom in the country. The present study aims to understand and analyze the challenges and opportunities faced by FDI Inflow and the future outlook towards FDI in multi brand retail Sector. It extrapolates that inward FDI can intensify competition and accelerate the process of innovation in the local Retail Sector. This paper tries to establish the need of the community to invite FDI in multi brand retailing. The final decision in this respect is yet to be taken by the government of India.
FDI in retail has the potential to benefit consumers through more choices, lower prices, and improved quality and supply chain efficiency. However, there are also risks like job losses for small retailers and increased competition. India's retail sector is currently dominated by unorganized and family-run small shops. The document discusses the various formats through which FDI can enter India like franchises, wholesale trading, and manufacturing subsidiaries. It also provides an overview of the growth prospects and impact of organized retail on the Indian economy. While FDI can boost investment and infrastructure, policymakers will need to ensure a level playing field for domestic retailers as well.
1) The document discusses foreign direct investment (FDI) in the retail sector in India, including the types of retail (single brand, multi-brand), current FDI policies that allow up to 100% in single brand and 51% in multi-brand retail, and the impacts of FDI in retail such as increased competition and quality/variety of products.
2) It also outlines trends in FDI, including growth in specialty retail stores, the continued dominance of unorganized traditional retail, and expansion in smaller cities and towns.
3) FDI provides benefits to India like access to markets and technology, but India must also develop infrastructure and skills to encourage investment and benefit from it.
Report on Impact of FDI in Retail in IndiaAkshay Seth
This report talks about the impact of FDI in Retail in India along with critically analyzing the versatility of the regulations which have been recently introduced for Multi Brand Retail
FDI in retail is a controversial issue in India. While it could provide benefits like new technologies, jobs, and infrastructure; there are also concerns it could hurt small farmers and retailers. The government allows 100% FDI in single brands and 51% in multi-brand retail, but places restrictions to protect local interests. It will only be allowed in large cities and foreign companies must source 30% of products domestically. Overall FDI could help India's economy grow, but the effects must be monitored and issues addressed.
This document discusses foreign direct investment (FDI) in India's retail sector. It provides an overview of the retail sector and FDI policy in India. It notes that historically FDI was only allowed up to 51% for single brand retail and 100% for cash and carry wholesale, but the new policy will allow up to 51% for multi-brand retail. The document discusses the opportunities that FDI in retail provides, such as job creation and improvement of supply chain infrastructure, as well as challenges around competition and impact on small retailers. It concludes that FDI in retail will benefit the Indian economy if implemented carefully.
Impact of FDI on retail sector in IndiaKaran Tyagi
Foreign direct investment (FDI) refers to investment from one country into another country. Allowing FDI in India's retail sector could provide benefits like new technologies, capital, and management skills but may threaten small unorganized retailers. India's $250 billion retail sector is mostly unorganized but organized retail is growing at 15-20% annually. Major retailers in India include Pantaloon, Tata, Reliance, and others operating stores like Big Bazaar and Reliance Fresh. Common retail formats are mom-and-pop stores, department stores, shopping malls, e-commerce, discount stores, and vending machines.
The document summarizes the impact of foreign direct investment (FDI) in the retail sector in India. It notes that while FDI in retail can generate employment, increased investment, and benefits for customers through greater competition and variety, it may also displace unorganized local retailers and small businesses. A survey by the Confederation of Indian Industry found that most small and medium enterprises believe FDI in retail would increase their sales and new orders or contracts, though opinions were more mixed on impacts to employment.
FDI or Foreign Direct Investment is a self explanatory term well sort of. In a layman’s language it refers to any monetary investment that is made by an entity in business if any kind on foreign shores.I'am sure this presentation will help you to understand FDI better .
The document discusses FDI in the Indian retail industry. It begins with definitions of FDI and reasons why countries pursue it. It then discusses the global and Indian retail scenarios, noting countries that allow 100% FDI in multi-brand retail. Major retailers in India like Pantaloon are introduced, and retail formats are defined. The document also discusses views on the impact of allowing FDI in multi-brand retail in India, including potential job creation but also threats to small retailers. Government policies on FDI in retail over time are also summarized.
The document discusses foreign direct investment (FDI) in India's retail sector. It notes that India allows 100% FDI in single-brand retail and 51% FDI in multi-brand retail. While organized retail makes up only 4-5% of the sector currently, FDI is projected to increase its size and market share. However, critics argue that large foreign retailers could crush India's 12 million small, unorganized retailers and negatively impact employment. Both benefits like increased investment and jobs, as well as concerns over impact on local businesses and prices, are discussed around allowing FDI in India's large retail industry.
This document discusses the potential effects of foreign direct investment (FDI) in multi-brand retail in India. It covers the historical trends in FDI in India, the current state of FDI, and the organization of India's retail industry. It then analyzes the potential impacts of FDI in multi-brand retail on different stakeholders, including retail workers who may lose jobs, local shopkeepers who may be put out of business, wholesale shopkeepers who will be disintermediated, and producers who may benefit from better market access. The document cautions that while producers may benefit, many retail and supply chain workers are likely to experience job losses or business closures if large foreign retailers enter the market.
This document discusses foreign direct investment (FDI) in the retail sector in India. It begins by defining FDI and describing the different types of retail markets and formats in India. The current FDI policy for retail is outlined, allowing up to 100% in single-brand retail and 51% in multi-brand retail. The advantages and disadvantages of FDI in retail for India are discussed. Recent FDI trends show growth in specialty retail stores, the continued dominance of unorganized retail, and expansion of retail into small cities and towns.
The document discusses recent changes to India's foreign direct investment policy in the retail and construction sectors.
In retail, the policy now allows single brand retailers to sell through both physical stores and e-commerce platforms. It also eases sourcing norms for single brand retailers. For construction, the policy removes minimum investment requirements, allows phases to be treated as separate projects, and introduces an early exit option with a three-year lock-in period.
The changes aim to liberalize and provide more clarity around FDI rules in these sectors to attract more foreign investment and accelerate growth of the Indian economy.
The document discusses foreign direct investment (FDI) in Indian retail. It provides an overview of the global and Indian retail industries. FDI is currently restricted in Indian retail but there are calls to allow it in phases. Allowing FDI could help modernize the industry through technology transfers and increase competition. A case study of China shows retail sales grew significantly after FDI was permitted there. The document recommends granting industry status to retail and permitting FDI in phases to help develop the Indian retail sector.
This document discusses the politics behind allowing foreign direct investment (FDI) in retail in India. It outlines the history of FDI in retail being allowed and rejected by different governments over time for political reasons. While FDI proponents argue it would create jobs and benefit farmers, some political parties oppose it to gain votes or embarrass the ruling Congress party. The decision to allow 51% FDI in multi-brand retail was suspended in 2011 due to political opposition despite its potential economic benefits.
This document discusses FDI in multi-brand retail in India. It provides background on organized and unorganized retail sectors in India. It outlines the government's proposal to allow 51% FDI in multi-brand retail subject to certain conditions like mandatory 30% sourcing from small industries and minimum $100 million investment. It then addresses several controversies around job losses, monopolies, need for foreign retailers, East India Company comparison, and impact on smaller states. It argues that FDI will benefit India through better infrastructure, curbing inflation, preventing labor exploitation and enabling exports. It concludes saying India must be open to change for prosperity.
This document discusses FDI in India's retail sector. It provides an overview of India's retail industry, which is largely unorganized. It then discusses the benefits of FDI, the types of FDI (single brand and multi-brand retail), and the impacts on various stakeholders like farmers, consumers, small businesses and the government. It outlines the debate around the issues like job losses and impact on small retailers. Finally, it discusses the current scenario of FDI in retail in India and provides an overall conclusion that FDI in retail can prove beneficial if implemented properly.
The document discusses Foreign Direct Investment (FDI) in India, specifically in the retail sector. It defines FDI and provides examples of major foreign retailers interested in the Indian market. It outlines the Indian government's policies that allow 51% FDI for multi-brand retail and 100% for single-brand. The document also discusses the types of FDI, sectors that attract FDI in India, and both the advantages and disadvantages of allowing FDI in the retail sector.
This document discusses FDI in retail in India. It provides background on the current regulatory regime for retail FDI, which allows up to 51% FDI for single-brand retail but prohibits FDI in multi-brand retail. The document outlines the need for FDI in retail to benefit farmers, consumers, and infrastructure development. It then examines the current FDI policy for cash and carry wholesale trading, single-brand retail, and the lack of policy for multi-brand retail. The document concludes by forecasting potential positive developments from FDI in multi-brand retail such as increased farmer income, more job creation, higher GDP and lower inflation, improved food security, and easier access to foreign products.
The document discusses foreign direct investment (FDI) in India, particularly in the multi-brand retail sector. It provides definitions of FDI and foreign institutional investment (FII), and compares the two. It outlines the key facts about FDI in India, including major investing countries and cities. The document also discusses the advantages and disadvantages of allowing 51% FDI in multi-brand retail in India. Overall, it analyzes the history, patterns, and impact of FDI in India as well as how India's FDI compares to China's.
FDI in retail sector allows foreign companies to invest in India's retail industry. India has gradually opened up FDI in retail since the 1990s, allowing wholesale cash-and-carry and later single-brand retail. In 2011-2012, it further allowed 51% FDI in multi-brand retail. Supporters argue this will modernize retail, reduce food waste, create jobs, and increase tax revenues. Critics worry local businesses may be forced out and jobs may focus more on machinery than wages. The retail sector is a large part of India's economy but was previously dominated by small shops.
Retail is a sunrise sector in the Indian business world. In the past few years, Indian has seen a revolution in the retail sector. More and more foreign retailers are now eyeing India as a perfect investment destination for retail ventures. Not only from the investment side , but also from the employment angle as it represents a large employment opportunity for people with diverse skill set
The document discusses business environment and its importance for business organizations. It explains that the interaction between a business and its external environment determines its success. It then outlines some key features of the business environment like how public policies and government regulations can impact businesses. It also discusses various factors that influence business decisions like the types of external environment (political, economic, social, technological, etc.). Finally, it explains the concepts of SWOT analysis and PESTEL analysis that are used to analyze the internal and external business environment.
Retail is the interface between producers and individual consumers for personal consumption. Retailers stock goods from producers and sell them to consumers at a margin of profit. Retailing contributes 14% to India's GDP but only 5% comes from organized retail. India is the 3rd most attractive destination for foreign direct investment in retail. Allowing FDI in retail could improve efficiency and living standards by providing consumers access to global brands, improved quality and variety of products, and increased competition. However, it could also displace labor and destroy traditional retail sectors.
- Retailing in India accounts for 14-15% of GDP and is one of the top five retail markets worldwide, valued at $500 billion. However, as of 2013, it was dominated by small, local shops rather than organized retail chains.
- Organized retail makes up only 7% of the market but is growing, expected to reach 20% by 2020. In 2011, several major Indian retail groups had expanded across India but on a smaller scale than international retailers.
- In 2012, the government allowed 51% FDI in multi-brand retail and 100% FDI in single-brand retail, which was expected to further boost organized retail and trigger investment in retail and backend infrastructure. However, growth continues
The document discusses foreign direct investment (FDI) in India's retail sector. It notes that while FDI could create jobs and improve infrastructure/technology, there is concern it may hurt small retailers and local suppliers. The government allows 100% FDI in single-brand retail and up to 51% in multi-brand retail, but implementation is up to state laws. Both opportunities and risks exist, with debates ongoing around FDI's impact on unorganized retail, farmers, employment and domestic sourcing.
Abstract: Retailing is one of the India’s largest private industries. Liberalization in FDI has caused a massive restructuring in retail industry. The benefit of FDI in retail industry superimposes its cost factors. Opening the retail industry to FDI will bring forth benefits in its terms of advance employment, organized retail stores, availability of quality products at a better and cheaper price. It is to be noted that there is a prevalent widespread opposition, especially by the left parties towards FDI retail in India. May be in 1990s employing safeguard to protect the domestic retailers was the need of the day. Almost more than one and a half decades down the line there is a need for Foreign Direct Investment in retail trade.
This document discusses political factors affecting foreign direct investment (FDI) in the retail industry in India. It provides background on FDI and why countries seek it. It then discusses India's regulations around FDI in retail, allowing up to 51% in multi-brand retail and 100% in single-brand retail. The benefits of FDI in retail include stimulating investment in stressed retail companies, generating employment, and increasing tax revenues. However, drawbacks include fears of domestic companies losing ownership and small enterprises being unable to compete with large foreign companies.
This document provides an overview of foreign direct investment (FDI) policies related to the retail sector in India. It defines key terms like organized and unorganized retail, and outlines India's historical restrictions on FDI in multi-brand retail. The document discusses the various entry options foreign players used prior to FDI policy changes, as well as the current policies allowing FDI in single-brand and cash-and-carry wholesale retail. It also examines concerns around partially opening the retail sector to FDI and limitations of India's present retail setup.
Legal & regulatory aspects of FDI policy in IndiaAkeeb Siddiqui
This document discusses the legal and regulatory aspects of foreign players in the Indian retail industry. It begins by defining retail and organized versus unorganized retail. It then outlines India's FDI policy and the entry options for foreign players prior to policy changes, including franchising, cash and carry wholesale trading, and strategic licensing agreements. The document also discusses the FDI policies for single brand and multi-brand retail, including the restrictions and approval processes. It concludes by discussing some major foreign retailers entering the Indian market and the potential impacts of FDI in retail.
study of Indian retail industry. its revenue generation, employment, and the future growth rate. Indian retail Industry is growing at the faster rate and it contributes nearly 22% for the GDP. students will know about the forms of retail industry in India, various organised retail store and format of store. This is a study conducted by SUBIN SURESH PGDM (KIRLOSKAR INSTITUTE OF ADVANCED MANAGEMENT STUDIES)
This document provides a summary of foreign direct investment (FDI) in retail in India. It discusses India's partial opening of the retail sector to FDI, allowing up to 51% FDI in single-brand retail but prohibiting FDI in multi-brand retail. It outlines the government's concerns about fully opening retail to FDI and the limitations of India's current retail setup in infrastructure and the dominance of intermediaries in the supply chain.
The document discusses FDI in Indian retail and its implications. It provides background on the large size and growth of Indian retail market. While the government currently allows only single-brand retail FDI, there is debate around fully allowing multi-brand FDI. Proponents argue it could improve supply chains and lower prices. Opponents argue it may displace small retailers. The document recommends a gradual opening to FDI along with support for domestic players and regulations to address issues like predatory pricing.
Organized retail has the potential to benefit farmers, consumers and the Indian economy overall. For farmers, it can provide higher and more stable prices by cutting out middlemen, and help improve quality and yields through training and investment. Consumers may pay lower prices and have greater variety. While some small retailers may close, others could adapt and find niches. The Indian retail market is large enough for both organized and unorganized sectors to thrive as seen in China. Overall, organized retail coupled with support for small businesses could boost the entire retail industry and benefit farmers, workers and the economy.
FDI in retail refers to foreign investment in the retail sector of India. The document discusses the various forms of FDI in retail in India - single brand retail allowing up to 51% FDI, cash and carry wholesale allowing 100% FDI, and multi-brand retail which is currently not allowed. It also outlines the debates around the benefits and criticisms of allowing FDI in retail, such as job creation but also threats to small retailers. Overall, it examines both sides of the issue and suggests there are difficult questions for policymakers to address around how best to leverage FDI while supporting domestic industries and employment.
2. CONTENTS
• FDI
• Retail
• FDI Policy in India
• FDI Policy with Regard to Retailing in India
• Entry Options for Foreign Players prior to FDI Policy
• FDI in Single and Multi-brand
• Foreign Investor‟s concern regarding FDI Policy in India
• Concerns for the Government for only Partially Allowing FDI in Retail Sector
• Benefits to different groups
• Limitations of the Present Setup
• Prerequisites before allowing FDI in Multi-brand Retail and lifting cap of Single Brand retail
• Opinion and Reactions of different groups and individuals
3. FDI
FDI is an investment to acquire long-term interest in
enterprises operating outside of the economy of the
investor.
FDI is a source of external finance which means that
countries with limited amounts of capital can receive
finance beyond national borders from wealthier
countries.
FDI is considered to be considered an ingredient in
economic growth.
4. INTERNATIONAL MONETARY
FUND
“foreign direct investment, commonly
known as FDI, "refers to an investment
made to acquire lasting or long-term interest
in enterprises operating outside of the
economy of the investor.”
5. HISTORY OF FDI
• Started at the time of East India Company of Britain.
• After world war II, Japanese companies entered
Indian Market.
• UK was the most dominant investor in India.
• In 1965, MNC‟s of foreign allowed to set collaborated
investors in India
• In 1980, Government set Foreign Investment Board
and Foreign Exchange Regulation Act.
6. HISTORY CONTINUED
• In early nineties, Indian economy faced severe Balance of Crisis. Dr.
Manmohan Singh with the help of World Bank and IMF introduced the
macro-economic stabilization and structural adjustment programme .As a
result of these of these reforms India open its door to FDI inflows .
• Then Foreign Investment Promotion Board is established
9. WHY FDI
• Raising the level of investment
• Upgrading the Technology
• Exploitation of Natural Resources
• Development of Basic Economic Infrastructure
• Improvement of Export Competitiveness
• Improvement in BOP
• Benefit to Customer
• Revenue to Government
10. WHAT IS RETAILING?
Retailing is the interface between the producer
and the individual consumer, buying for
personal consumption. It is the last link that
connects the consumer with the manufacturing
and distribution chains.
11. INDIA IN RETAIL SECTOR
• India is the fifth largest retail market globally.
• Retail contributes to 15% of India’s GDP.
• India has highest retail density in the world with 15 million outlets.
• It provides employment to 40 million Indians (3.3 % of Indian
Population)
• Retailors such as Nike, Wall-mart, IKEA, Apple etc.
12. DIVISION OF RETAIL INDUSTRY
O r g a n i ze d R e t a i l i n g U n o r g a n i ze d R e t a i l i n g
Organized retailing refers to trading Unorganized retailing, on the other
activities undertaken by licensed han, refers to the traditional formats
retailers, that is, those who are registered of low-cost retailing, for
for sales tax, income tax, etc. These example, the local kirana
include the corporate-backed
shops, owner manned general
hypermarkets and retail chains, and also
the privately owned large retail stores, paan/beedi
businesses. shops, convenience stores, hand cart
and pavement vendors, etc.
Only 5% of the total retail share. 95% of the total retail share.
13. FDI POLICY IN INDIA
• FDI permitted in almost all activities
• Up-to 100% FDI allowed in manufacturing
• Most FDI allowed on the ‘automatic route’
• Liberal policy for foreign technology collaboration
• Policy supported by a legal framework
• National treatment to investment
• Investment being constantly reviewed and liberalized
• Policy is independently to be liberal and progressive.
14. ENTRY OPTIONS FOR
FOREIGNERS
• Franchise Agreements
• Cash and Carry Wholesale Trading
• Strategic Licensing Agreements
• Manufacturing and Wholly Owned Subsidiaries
15. FDI IN SINGLE BRAND
• Single brand retail is one in which a single item is sold across all outlets.
Such as Reebok, Titan, Puma etc.
• Policy Before 2011
• FDI up to 51 %, with prior Government approval, is allowed in retail
trade of single brand products, subject to the following conditions:
• FDI up to 51 % would be allowed, with prior Government approval, for
retail trade of Single Brand Products;
• Products to be sold should be of a „Single Brand‟ only.
• Products should be sold under the same brand internationally.
• „Single Brand‟ product-retailing would cover only products which are
branded during manufacturing.
16. THE CHANGE:
The Government finally has permitted 100 percent FDI in Single brand retail under
the government approval route subject to certain conditions. Some of the stipulated
conditions are:
(a) Products to be sold should be of a ‘Single Brand’ only.
(b) Products should be sold under the same brand internationally i.e. products should be
sold under the same brand in one or more countries other than India.
(c) ‘Single Brand’ product-retail trading would cover only products which are branded
during manufacturing.
(d) The foreign investor should be the owner of the brand.
(e) In respect of proposals involving FDI beyond 51%, mandatory sourcing of at
least 30% of the value of products sold would have to be done from Indian
‘small industries/ village and cottage industries, artisans and craftsmen’. .
17. MULTI BRAND RETAIL IN INDIA
• Marketing of similar and competing products by the same firm under different and unrelated brands.
For example: walmart, big bazar, tesco etc.
• FDI in multi brand retail was not permitted in India. However, the Government of India proposed
some policy changes in late 2011. they are as follows..
• A decision has been taken by the Government to permit FDI in all products, in a
• calibrated manner, subject to the following conditions:
•FDI in Multi Brand Retail Trade (MBRT) may be permitted up to 51%, with Government approval;
•Fresh agricultural produce, including fruits, vegetables, flowers, grains, pulses, fresh poultry, fishery and
meat products, may be unbranded.
•Minimum amount to be brought in, as FDI, by the foreign investor, would be US $ 100 million.
•At least 50% of total FDI brought in shall be invested in 'back-end infrastructure’.
• Back-end infrastructure will include investment made towards processing, manufacturing,
distribution, design improvement, quality control, packaging, logistics, storage, ware -house,
agriculture market produce infrastructure etc. Expenditure on land cost and rentals, if any, will not be
counted for purposes of backend infrastructure.
18. •At least 30% of the procurement of manufactured/ processed products shall be
sourced from Indian 'small industries' which have a total investment in plant
& machinery not exceeding US $ 1.00 million. This valuation refers to the
value at the time of installation, without providing for depreciation. Further, if
at any point in time, this valuation is exceeded, the industry shall not qualify as
a 'small industry' for this purpose.
•Self-certification by the company, to ensure compliance of the condition at
serial nos. (iii), (iv) and (v) above, which could be cross-checked as and when
required.
• Accordingly, the investors to maintain accounts, duly certified by statutory
auditors.
•Retail sales locations may be set up only in cities with a population of more
than 10 lakh as per 2011 Census and may also cover an area of 10 kms around
the municipal/urban agglomeration limits of such cities; retail locations will be
restricted to conforming areas as per the Master/Zonal Plans of the concerned
cities and provision will be made for requisite facilities such as transport
connectivity and parking;
•Government will have the first right to procurement of agricultural products
19. BENEFITS
• Direct benefit to Farmers
• Reduction in Food Inflation
• Earning of For-ex
• Huge Employment Benefits
• Drop in Food Wastage
• Better Consumer Choice
• Benefit to Kirana Stores
• Creation of backend Infrastructure
• More Purchase from SMEs
20. LIMITATION TO THE PRESENT
SETUP
• Infrastructure
• Intermediaries dominate the value chain
• Improper Public Distribution System
• No global reach
21. OPINIONS AND REACTIONS
In the last few months, there has been significant discussion on permitting
Foreign Direct Investment (“FDI”) in Multi-Brand Retail Trading. As part of that
process, the Department of Industrial Policy and Promotion (“DIPP”) released a
discussion paper on “Foreign Direct Investment (FDI) in Multi-Brand Retail
Trading” (“Discussion Paper”) and invited views on the same. The Confederation
of Indian Industry (“CII”) had responded to the Discussion Paper earlier
(attached as Annexure 1 is a copy of the response for your reference). In addition
to the views set out in the attached response, this note seeks to outline CII
perspective on key issues relating to FDI in retail trading sector based on certain
recent press reports on the recommended proposal of the DIPP, while
highlighting the need to adopt a different approach for food and non-food sector.
By : Greeta Varughese
[Senior Director]
Special Initiatives (SI) - CO
Confederation of Indian Industry
22. I believe that union government's policy to allow foreign direct investment in retail
business is destructive for the country, because it won't bring technology...only foreign
money will be invested in Indian markets.
By: K N Govindacharya
Former BJP Ideologue
People reject FDI in Retail in the Public Hearing organized by East Delhi Municipal
Corporation: Trade Unions, Street Vendors Associations, RWAs & Civil Society
expressed their opinion: 98% voted against FDI in Retail in the opinion poll;
Respecting Peoples verdict EDMC will not grant trade licences to FDI Retailers
By: Annupurna MIsra
Mayor, EDMC
23. I think the advocates of FDI have probably put too much emphasis on it. India is
really in a different position than a small, developing country. It is different in two
ways. First, you have a large pool of entrepreneurs and they are globally savvy. They
have access to global technology and they have a lot of wealth. So, if there were large
returns to large-scale supermarkets, the domestic industry would have supplied it. They
are supplying to some extent. It is possible that more competition would spur growth
but not having access to FDI is not an impediment in India. I think you have to ask
the question - the way to get access to technology to run a supermarket in other ways.
A store like Wal-Mart has developed a supply chain in China that is able to procure
many goods at lower prices than others because of the huge buying power they have
and will use that power then to bring Chinese goods to India to displace Indian
production. So the worry is not so much about the displacement of the small retail
store but displacement further down the supply chain. So that is what I am worried
about. There are other two other issues also I would worry about. Some of the profits
of the companies like Wal-Mart come from free riding on our society. They don't
provide healthcare benefits to their workers and they assume that the husbands or
wives of the workers get healthcare benefits from their other employees or they get
money through some other mechanism. In the US, the salary is so low, it is difficult for
them to pay for it. They might not be a good employer. So the question is to bring in
the Indian context the firms that are not good employers.
By: Shobhan Saxsena
Editor
Sunday Times of India
24. Supreme Court
The Supreme Court on Oct 15 refused to stay the Centre's decision to allow Foreign Direct
Investment (FDI) in retail sector. A bench of justices R M Lodha and A R
Dave, however, said that the policy suffers from "curable" irregularity of want of legal
sanction and asked the RBI to amend the Foreign Exchange Management Act (FEMA)
regulations to allow implementation of the government's policy.
The bench said the RBI should have amended the FEMA regulations before the
implementation of FDI policy and asked the banking regulator to take steps to remove the
lacunae in the way of giving a final shape to the policy.
The court observed that the regulations should have been amended before the Centre
issued the notification, but clarified that the irregularity can now be cured with RBI
amending FEMA regulation. "At least it can be said that it is an irregularity that is curable
and as soon as amendment is brought, it would be cured," the bench said.
During the argument, the court said the policy cannot be stayed just because of this
irregularity. Attorney General G E Vahanvati submitted that he would talk to the RBI
Governor to take immediate steps for bringing amendment in the FEMA regulations. The
bench after hearing his submission adjourned the matter for further hearing on November
5.
The court was hearing a PIL filed by lawyer M L Sharma, who has said that RBI's nod was
missing from the Centre's policy allowing FDI in retail sector.
By: R M Lodha and A R Dave
Bench of Judges
Supreme Court
25. STRIKE AGAINST FDI IN RETAIL
Call on 20th September for a nationwide strike (Bharat Bandh) by trade unions
of street vendors, small traders, and most of the political parties from left to
right and including of parties within the Govt. and parties supporting the
Govt. was historical. Millions of retailers and thousands of trade associations
observed the bandh demanding rollback of FDI in multi-brand retail. All
major markets were closed throughout India. Public transport was off the
roads and colleges, schools, offices and transport services remain shut in most
part of India. Trains were blocked by political activists of BJP, SP and CPI
(ML) in many places including Bihar, Uttar Pradesh, West Bengal, Orissa and
Jharkhand. The station Master of Patna Railway Station was locked. The
impact of the strike was also seen in states of the North East. The bandh was
total in Manipur. Banks, markets, shops and educational institutions were
closed, with government offices recording low attendance in Meghalaya.
Railway, road and others services were heavily impacted in Jharkhand. Most
colleges reported only 20-50% attendance in Mumbai.
26. Small Farmers will get better pay for their production; Currently on 10-25% of
amount is paid to farmer than market selling price. Wastage of Food production is
controlled to huge extent as the biggies will be able to get the cold storage of high
volume. Tax is paid to govt, whereas local kiranas won‟t pay the proper tax. Choice
for customers, as there will be lot of options. Low prices offered to customers due
to Heavy competition. Immediate employment in real estate and retail sectors.
Quality fruits and vegetables without chemicals. Expiry date issued on each
product. Export of Indian products to other countries. Global access to
technology in retail sector and many more ....One of the best chances to see better
India.
By : Easyday Store Manager
Sirsa
FDI will ensure better operations in production cycle and distribution. Due to
economies of operation, production facilities will be available at a cheaper rate
thereby resulting in availability of variety products to the ultimate consumers at a
reasonable and lesser price.
By: Pradeep Madaan
Lecturer
Govt Senior Secondary School
Sirsa
27. FDI in retail has both a negative and positive impact on economy of India.
Positive aspects is it helps to boost the growth of economy by increasing
foreign investment, availability of goods in less prices and helps towards
better infrastructure. Negative part is it leads to unemployment or we can say
it destructs the general kirana business and their livelihood too. India business
goes to foreign hands, so it may increase the danger of economy failure.
By: Ms. Shweta Sharma
Asst. Professor
JCD Vidyapeeth
Sirsa
28. FDI AT DUSSEHRA
Mythology touched by a tinge of modernism isn‟t a bad idea for creativity.
The modern day demon in Indore is an effigy of „FDI Ravan‟ which will be
burnt on Dussehra evening. Jaipur, like every year, is all geared up to celebrate
Dussehra in the brightest magnificence. "The tallest effigy of 120 feet is
erected by us at the Central Spine in Vidhyadhar Nagar. We are planning to
make it a delightful evening for the devotees," said a member of the
organising committee at Vidhyadhar Nagar. Pune celebrates this day in a
different way altogether. As the traditional practice, Apta leaves that represent
gold are exchanged by people. During Dussehra people worship the Shami
and in Maharashtra, they exchange leaves of the Apta tree (also known as
Sonpatta). In some parts of south India, the leaves of the Shami are soaked in
water until the day before Diwali when people bathe with this water.
BY: Aryani Banerjee
Correspondent
India TV
29. One thing that concerns me is the influx of cheap / low-cost products from
China, Mexico.. etc, which would kill the manufacturers in India. While one could
talk about healthy competition, some countries may be able to produce cheaply
purely on the basis of currency exchange rate and cheap labour environment
(violating human rights). Would we actually be supporting something we need to
condemn, by purchasing from Walmarts and other FDI sponsored outlets?
By: J C Chawla
Branch Manager
Punjab National Bank
Sirsa
There is a lot to be said for big retail to come to India, but we cannot simply be
taken in and mimic something which is being pushed down our throats because
those who make the policy appear to not have the faintest clue on how retail really
works in India.
By: Mohamud Yunus
Professor, Punajabi University
Patiala