The document discusses FDI in the retail sector in India. It provides background on FDI and the global and Indian retail industries. It notes that while retail is one of the world's largest industries dominated by developed countries, the Indian retail industry is currently split between organized and unorganized sectors. There is debate around allowing FDI in multi-brand retail in India, as it could negatively impact the many small retailers but supporters argue it could modernize the supply chain and bring competition. The document cautions that opening to foreign multi-brand retailers could lead to job losses and market dominance by a few large foreign companies, as seen in other countries.

1. FDIissues inRetail

2. what is FDI?

3. An investment is.. The commitment of money or capital to purchase financial instruments or assets in order to gain profitable returns.

4. An investment becomes foreign investment when..Foreign Investment through Investment done by citizens and government of one country (home country) invest in industries of another country (host country).Foreign Direct InvestmentsForeign Institutional Investors

5. FDI Routes Automatic RouteGovernmentNo permission required Approval /License required.

6. Retail Sector at Global LevelOne of the world's largest industries exceeding US$ 9 trillion.

7. Dominated by developed countries.

8. 47 global fortune companies & 25 of Asia's top 200 companies are retailers.

9. US, EU & Japan constitute 80% of world retail sales. Retailtrade in Europe employs 15% of the Europeanworkforce (3 million firms and 13 million workers).

10. The world’s population is poised to expand 50% by 2050. The world currently comprises of 78% poor, 11% middle income and 11% rich.Contribution Of Retail Industry to GDP of Various Economies

11. Indian Retail Industry Organized retail: trading activities undertaken by licensed retailers, that is, those who are registered for sales tax, income tax, etc.Un-Organized retail:traditional formats of low-cost retailing, for example, the local Kirana shops, owner operated general stores, paan/beedi shops, convenience stores, hand cart and pavement vendors, etc.

12. Major Indian Retailers : Categories

13. Segmentation

14. Why Global Retailers Look Up to India?India is a developing country.

15. Indian market is very large market

16. Retail is the topmost growing market in India

17. The environmental and political factors are not that much bad in India.

18. Tax breaks, import duty exemptions, land and power subsidies, and other enticements.Retail market in India The total retail sales in India will grow from US$ 395.96 billion in 2011 to US$ 785.12 billion by 2015

19. Accounts for 14% of countries GDP

20. Accounts for 8% of countries employment Current Retail scenario in India100% FDI is allowed in wholesale cash and carry trade.

21. 51% FDI in single brand retail

22. No FDI in multi brand retailWHAT WILL HAPPEN TO RETAIL TRADEThese companies open chain of shops. With a shop in each area the retail small shopkeepers will be put to heavy loss

23. Slowly the local shops will start closing down.

24. These shops will capture the trade.

25. In countries where they have established their market share is Name of Country % of Market ShareAmerica 80% England 80%Western Europe 70%Brazil 40%Thailand 40%Korea 35%China 20%Imagine Roadside DHABA’s after RELIANCE FOOD CHAIN Starts working.WHAT WILL HAPPEN TO LOCAL RETAIL TRADENo of Retail outlets Between 1981-99 in United Kingdom came down from 56862 to 25800.

26. Between 1970-80 in Europe about 4 lakhs Retail shops were closed.

27. Competition shall be limited to Big Retail Houses