FDI in retail would have both positive and negative impacts. Potential positives include increased employment, more competition leading to improved quality and convenience for consumers. However, there are also concerns about loss of livelihoods for small retailers unable to compete, and domination by large foreign giants. The document discusses the current status of FDI in India and foreign companies interested in the Indian retail market. It also provides opinions on both sides of the issue and potential clarification of investment norms.

1. CRAFTED BY :SUYASH DUBEY
RAKESH
DAWANI

2. CONTENTS
 What is Foreign Direct Investment ?
 Present status of FDI
 Foreign entities keen to invest in Indian retail market
 What is retail & what it includes ?
 Positive & negative implications of FDI in retail sector
 Our opinion on this subject

3. WHAT IS FDI ?
 Investment by a co. in non-domestic country
 By buying or expanding any existing
business
 It is passive investment unlike portfolio
investment
(stock & bonds)
 It will always focus on acquiring controlling
interest.

4. IMPACT ON LOCAL PLAYERS
 Have to face competition with respect to : Brand value
 Technological advancement
 Capacity to invest

5. PRESENT STATUS
 Currently 51% FDI is allowed in ‘Single Brand
Retail’ such as IKEA, Adidas, Apple etc.
 It is proposed by our Prime minister Mr.
Manmohan Singh
 To Allow 51% FDI in Multi Brand Retail
 To Increase FDI in Single brand retail to 100% .

6. FOREIGN CO’S KEEN TO
INVEST
 WALMART
 Having revenue of $421849 Million which is equivalent to Rs.21 lakh
crore (approx.)
 CARREFOUR
 Having revenue of $121519 Million which is equivalent to Rs.6 lakh
crore (approx.)
 TESCO
 Having revenue of $94244 Million which is equivalent to Rs.4.71 lakh
crore (approx.)

7. WHAT IS RETAIL ?
 Retail sector means all the shops that sell goods to
the ultimate customer, who buys them for personal
and not business use.
 It is entirely different from Trading.
 Maximum composition of retail sector in India is
presently covered by small players

8. WHAT IT INCLUDES ?
 It includes providing goods & services in varied
areas out of which a partial list is as follows :Automobile dealers
Clothing stores
Department & grocery stores
Theatre
Barber shops, etc.

9. CURRENT STATUS OF RETAIL
SECTOR
 Super
Markets captures only 4% of the total Indian retail
market and rest 96% is in unorganized form which includes
Grocery stores, corner shops, hand kart, convenience
stores & pavement shops .
 Over 14 million outlets operate in the country and only 4%
of them are larger than 500 sq ft in size.

10. POSITIVE & NEGATIVE
IMPLICATIONS OF FDI
V/S

11. POSITIVE IMPACTS OF FOREIGN
DIRECT INVESTMENT

12. INCREASE IN EMPLOYMENT

13. INCREASED COMPETITION

14. INCREASED CONVENIENCE
TO CONSUMER

15. NEGATIVE IMPACTS OF FOREIGN
DIRECT INVESTMENT

16. LOSS OF LIVELIHOOD

17. DOMINATION BY GIANTS

18. SHIFT OF REVENUE

19. PERSONAL OPINION
FOR
AGAINSET

20. CLARIFICATION OF NORMS
 It is mandatory for them to source at least 30% of their goods
from Indian small and medium suppliers.
 FDI to be restricted to 51 cities with a population of more than
a million.
 Mandatory to invest in back-end infrastructure that will help
reduce wastage of farm produce, improve the livelihood of
farmers, lower the prices of products and ease supply-side
inflation.

21. FACTS ABOUT CHINA
 After the allowance of 100 % FDI in multi brand retail the quality of products
& services improved to a great extent.
 Also the local players are co-existing with the foreign players.

22. POSITIVE ATTITUDE
 Change with changes
 Risk taking capacity
 Adapt new things from Walmart

23. CONCLUSION
 Small players being thrown out of the market not
because of FDI but because of their own incapability or
non-competence nature.
It is not the strongest of the species that survive, nor the
most intelligent, but the one most responsive to
change.
- Charles Darwin

24. EXPECTED QUERY ??????
Q- Walmart, Carrefour & Tesco are so successful in foreign
countries so how we can say that will not dominate the retail
business in India ?
Ans. –
1. The reason for their success in foreign countries is the culture
prevailing there. For them super markets are plural for retail. But in a
country like India people are dependent on small shopkeepers for
purchasing necessities due to personal attention & convenient credit
facilities. So irrespective of huge size of Indian economy they will not get
the same level of response here as they are getting in foreign countries.
2. The easily accessible places of nearly all the big cities are
overcrowded by business people so they have to establish themselves in
the outskirts of the city .