The document discusses India's changing policies on foreign direct investment in retail. It provides an overview of the old policy which allowed 100% FDI in cash-and-carry wholesale but prohibited FDI in multi-brand retail, the new policy which allows 51% FDI in multi-brand retail and 100% FDI in single-brand retail, and perspectives from the government, opposition, and on whether it will be a boon or bane. The document was presented by a group of students and addresses the retail industry in India, views on the policy changes, and limitations of the existing setup.

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FDI IN RETAIL
By Group 9
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2. Agenda
• Old FDI Policy
• New FDI Policy
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• Retail Industry in India
• Government’s and Oppositions' views
• Boon Or Bane?
• Limitations of Current setup
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3. Presented by
• Rohit Sankhe P29
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• Sachin Golamwar P31
• Sushant Nadarge P41
• Jyoti Rajavat P51
• Sonal Machale P56
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4. FDI Policy In Retail Before
• 100% FDI in cash and carry(wholesale)
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• 51% FDI In Single Brand allowed in 2006.
• No FDI in Multi brand Retail.
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5. Entry Options Prior FDI Policy
• Franchise Agreement
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• Cash And Carry wholesale trading
• Strategic Licensing Agreements
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6. FDI Policy In Retail Now
• 100% FDI in Single Brand retail.
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• 51% FDI in Multi brand retail.
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7. Retail Industry In India
Organized Retailing
30% to 35 %
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Eg. Super market
Hyper market
Department stores
Include domestic and international
market
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8. Continued….
Unorganized Retailing
91 %
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Eg. Kirana
Street market
Hardly Decrease in market share by
1.7 %
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9. FDI in Single Brand Retail
• In November 2011 government allowed 100% FDI in single brand
retail .
• conditions :
• (a) only single brand products would be sold
• (b) products should be sold under the same brand internationally
• c) single-brand product retail would only cover products which are
branded during manufacturing
• (d) any addition to product categories to be sold under “single-
brand” would require fresh approval from the government

10. FDI in Multi Brand Retail
• 51% FDI in Multi brand retail.
• FDI in multi-brand retail as one of the means for addressing issues
relating to high rates of food inflation and low prices realised by
Indian farmers.
• Following points should be considered:
a) Multinational retailer trade practices should not dampen the spirit
of Indian farmer.
b) Remunerative price to farmer.
c) International retailer should be mandated to work with farmer.
d) Govt need to identify the trend & ways of supporting farmers
e) Govt should ensure that the agro produces should be procured
from local buyer.

11. Government’s view on New Policy
• Secure farmer’s remunerative price by eliminating middleman
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• Policy of min $100 million
• Salutary impact on food inflation
• Sourcing of min 30% from MSE is mandatory
• Small retailers have flourished with large outlets -CHINA 11

12. Continued…..
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13. Opposition’s View
• Large scale job loss
• They will Create monopoly
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• Displace existing market
• Jobs in manufacture industry will be lost
• No role in building roads..etc
• Comparison between India & China is misplaced
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14. FDI Boon Or Bane??
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• Growth in economy.
• Job opportunities.
• Benefits to farmer.
• Benefits to consumer.
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15. Bane??
• Impact on Indian Economy.
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• Indian retailers loose their business.
• Domestic retail will loose market share.
• Small business owners and workers will loose their jobs.
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16. Limitations of Current Set Up
• Infrastructure.
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• Intermediaries dominates the value chain.
• Improper Public Distribution Channel.
• No Global reach.
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17. Conclusion
• Concerns
• Suggestions
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• Benefits must reach to every Citizen
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18. 9/30/2012
THANK YOU!!!
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