1. FDI IN RETAIL SECTOR
INDIA:BALANCE BETWEEN
EQUITY AND GROWTH

2. RETAILING: An Overview
 One of the pillars of Indian Economy which accounts for
14% - 15% of its GDP.
 INDIA is the fastest growing retail market in the world
estimated 470 billion US$.
 Welcome companies to Indian retail market with 100%
ownership, but imposed requirement that retailers
would have to source 30 percent of their goods from
small industries in India.
 Federal Government of India allowed 51% FDI in multi-
brand retail in India.
 Largest employer after agriculture- 8% of population.
 Highest Retail outlet density in the world- 12 MN Outlets.

3. SEGMENT-WISE RETAIL
MARKET
 FOOD AND GROCERY
 TEXTILE AND APPAREL
 CONSUMER DURABLES
 MUSIC AND BOOKS
 JEWELLERY
 WOODEN FURNITURE
 LEATHER FOOTWEAR
 HANDICRAFTS
 FAST FOOD CHAINS
 REAL ESTATE
 FUEL RETAILING

4. FDI DESTINATION-INDIA
 Low share of organized retailing.
 Increase in disposable income and customer
aspiration.
 Increase in expenditure for luxury items.
 One of the three top emerging economies.
 3rd largest GDP in the Asian content.
 Ranked 2nd most favored destination for FDI after
China.
 Ranked as 9th in the ranking of world economies.
 India offers prospects for growth and earning –
basically in all areas of business.

5. GROWTH IN INDIA
 In 1997 India allowed FDI in cash and carry
wholesale.
 Within 2010,94 single brand retailing proposals
came among which 57 were approved.
 Allowed direct investment in cold-chain
infrastructure to the extent of 100%.
 Intermediaries are being removed.
 $27 billion comes from organized retail markets of
the total sales of $470 billion.
 Economist forecast that Indian retail will nearly
double itself in economic value.

6. WHY FDI?
 Wastage and Storage problems will be resolved.
 Improve in quality of employment.
 Creation of around 10 million jobs.
 Control of Inflation.
 Huge amount of capital inflow in country.
 Growth of Infrastructure
 Upgradation of lifestyle and fashion.
 Safety and Quality standard will be high.
 Help farmers secure remunerative prices by reducing
middleman.
 Rupee will be appreciated.
 Tourism sector will develop.

7. REASONS FOR FDI OPPOSITION
 Foreign players would displace the organized
retailers because of their superior financial strength.
 The entry of large global retailers would kill local
shops and millions of jobs.
 Induce unfair trade practices like predatory
pricing, in the absence of proper regulatory
guidelines.
 Increase in real estate prices and marginalize
domestic entrepreneurs.

8. FDI: INDIA & CHINA

9. FDI & ECONOMIC GROWTH
YEAR % average
ECONOMIC
annual GDP
YEAR GROWTH growth
2001 5.20%
2002 3.80% 1900-1950 1%
2003 8.40%
2004 8.30% 1950-1980 3.5%
2005 9.30%
2006 9.30% 1980-2002 6%
2007 9.80%
2008 4.90%
2009 9.10% 2002-2008 8%
2010 8.80%

10. WALMART:FOR ECONOMIC
GROWTH
 US-based retail giant Walmart today said investment by the company in India's
retail sector will create jobs, expand business opportunities for farmers and
spur community development.
"An investment by Walmart would generate retail and construction jobs, create
back-end infrastructure, spur community development, and expand business
opportunities for small and marginal farmers and local SMEs," Walmart Asia
President and CEO Scott Price said in a statement.
The company can offer customers a wide assortment of great merchandise at
low prices and help them save money so that they can live better, he added.
Hailing the government's step to allow 51 per cent FDI in multi-brand
retail, Price said: "We look forward to working with the Government of India
and state governments to understand the rules that exist for FDI, and we are
committed to evolving and following them in a logical manner that benefits
both the Indian customer and our business."
The company has plans to expand opportunities for farmers and help lower the
cost of living for families in India, he added.

11. GOVERNMENT PROPOSAL FOR
EQUITY AND GROWTH

12. CONCLUSION
 India’s FDI has increased dramatically since the 1990s
 FDI does not have strong impact on economic growth in
India
 Changes in FDI do not strongly influence development of
this country because India’s FDI is small part of
investments
 Higher rate of growth in the coming future• It is widely
acclaimed and recognized as an emerging global
economic power
 Attractive place for investments
 India has become a major destination for FDI, one of the
largest in the developing world
 Rupee is becoming stronger and stronger
 India’s international diplomacy has become meaningful.