the ppt is about imapct of FDI In rural ratail market and stores

1. PRESENTED BY
Mr. TUSHAR R. VAIDYA
tusharvaidya143@gmail.com
MBA II

2. FDI IN RETAIL

3. THINGS TO REMEMBER -
Before we go ahead, we should keep certain basic facts in our mind.
 We are a country with huge population out of which majority are unprivileged and
Below Poverty line.
 We are people with tradition, culture and ethics.
 In our country it is very difficult to get alternate employment.
 Our survival is because of our collective strength.
 The Govt. policies have been Anti Growth oriented for TRADERS.
 The Traders Voice is not heard by decision makers.
 In fact Traders have no representation in Govt.

4. LICENCES & PERMITS
INDUSTRIAL DISPUTE ACT
SHOP & ESTABLISHMENT ACT
COSUMER PROTECTION ACT
WEIGHT & MEASUREMENT ACT
PACKAGING ACT
PREVENTION OF FOOD ADULTRATION ACT
PREVENTION OF BLOCK MARKETING ACT
ANTI HOARDING & PROFEELING ACT
MONEY LENDING ACT
PRODEND FUND ACT
MINIMUM WAGES ACT
ESI ACT
GRATUITY ACT
BONUS ACT
INEFFICIENT
LABOURS
PRESENT CONDITION OF TRADERS
ANTI SOCAL ELEMENTS
POLITICIAL INTERFERANCE
Fringe Benefit Tax
WATER TAX
SERVICE TAX
CENTRAL
EXCISE
POWER PROBLEM
HIGH BANK
CHARGES
OCTROI
WELTH TAX
PROFESSIONAL TAX
INCOME TAX
ENTRY TAX
PURCHASE TAX
POOR MARKET
CONDITION
STAMP DUTY
ESSENTIAL COMMODITIES ACT
FDI in Retail Trade
Cash Transaction Tax
&
Quarterly ‘C’ Form

5. RETAIL TRADE :
BACKBONE OF ECONOMY
 Retail trade is world’s oldest business.
 Retail trade consists of sale of goods & services to consumers for their personal,
family or household use.
 Based on turnover and volume, retail trade is worlds biggest economic activity.
 In the year 2000, world turnover in retail trade is estimated around Rs. 3,10,20,000
corers.
 In India by investing nominal Capital a person can start retail business.
 In India Retail shops are generally owned and run by family. The whole family gets
self employed.

6. WHAT IS EXACT FDI IN RETAIL ?
 51 % FDI allowed in single-brand formats
 100 % FDI in cash-and-carry format
 NO FDI in multi-brand stores ( like Wal-Mart)
 Trends indicate that the FDI would open up in retail sector,
However political consensus has to be reached before that happens

8. CONTRACT FARMING
COLLECTION OF
AGRICALTURE PRODUCTS
TO OWN FACTORY
TO OWN DEPT. STORE
TO CUSTOMER
We all are

9. BENEFITS
Benefits of FDI in Retail
 Inflow of investment and funds.
 Improvement in the quality of employment.
 Increased local sourcing.
 Provide better value to end consumers.
 Investments and improvement in the supply chains
and warehousing.
 Franchising opportunities for local entrepreneurs.
 Growth of infrastructure.
 Cost reduction.
 Implementation of IT in retail.

10. DRAW BACKS
Drawbacks of FDI in Retail
 Would give rise to cut-throat competition rather than
promoting incremental business.
 Promoting Cartels and Creating Monopoly.
 Increase in the Real Estate Prices.
 Marginalize domestic entrepreneurs.
 The financial strength of foreign players would
displace the unorganized players.
 Absence of proper regulatory guidelines would induce
unfair trade practices like Predatory