This document discusses foreign direct investment (FDI) in retail in India. It provides background on the retail sector and defines organized and unorganized retail. Currently, India only allows 50% FDI in single-brand retail, not multi-brand retail. The document outlines both advantages, like greater efficiency and job creation, and disadvantages, like potentially displacing labor, of allowing FDI in retail. It concludes that permitting FDI in a phased manner could benefit farmers, consumers and the economy by improving supply chains and integrating India more with the global economy.

1. FDI IN RETAIL Divya Raman Corporate Department Altacit Global Email: info@altacit.com Website: www.altacit.com

2. RETAIL Retail – interface between producer and individual consumer for personal consumption. Retailer - one who stocks the producer’s goods and is involved in the act of selling it to the individual consumer, at a margin of profit.

3. Indian Scenario Retailing is the single largest component of the services sector in terms of contribution to GDP. Its share in GDP is 14%.

6. Foreign Investment ‘Foreign investment’ is investment in an enterprise by a Non-Resident irrespective of whether this involves new equity capital or re-investment of earnings. Foreign investment is of two kinds – (i) Foreign Direct Investment (FDI) and (ii) Foreign Portfolio Investment. (As per Consolidated FDI Policy April 1, 2010)

7. Legal Basis Foreign Direct Investment by non-resident in resident entities through transfer or issue of security to person resident outside India is a ‘Capital account transaction’ and Government of India and Reserve Bank of India regulate this under the FEMA, 1999 and its various regulations.

11. Greater integration into the Global economy.

12. Price Reduction.

13. Improved selection.

16. Would boost food products, textiles and garments, leather products etc.

18. Economic Survey 2010-11 "Permitting FDI (foreign direct investment) in retail in a phased manner beginning with metros and incentivizing the existing retail shops to modernize could help address the concerns of farmers and consumers. FDI in retail may also help bring in technical know-how to set up efficient supply chains which could act as models of development."

19. Conclusion All this promises to make the Indian retail market a real happening place in the days ahead while at the same time offering immense business opportunities to the domestic entrepreneurs. In fact, this is likely to transform the whole contours of the India market, making it a part of the overall global market.

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