This document discusses FDI in India's retail sector. It provides an overview of India's retail industry, which is largely unorganized. It then discusses the benefits of FDI, the types of FDI (single brand and multi-brand retail), and the impacts on various stakeholders like farmers, consumers, small businesses and the government. It outlines the debate around the issues like job losses and impact on small retailers. Finally, it discusses the current scenario of FDI in retail in India and provides an overall conclusion that FDI in retail can prove beneficial if implemented properly.
Fdi in india:An analysis on the impact of fdi in india’s retail sectorSubhajit Ray
This presentation aims to briefly discuss the critical aspects of FDI in India, present a case study on the success of reforms in the telecommunications sector, analyze both sides of the arguments currently going on regarding FDI in retail and conclude with suggestive measures on the part of the government which can eliminate the negative effects of allowing FDI in India’s retail sector.
Foreign direct investment (FDI) refers to long term cross-border investment involving foreign management and technology transfer. There are inward, outward, and net FDI flows. India promotes productive FDI to stimulate industrialization. FDI increases capital, technology, employment, and aggregate supply and demand. However, FDI can reduce competition and domestic policy control. India's FDI policy allows up to 100% foreign ownership in some sectors with approval. Restrictive regulations, unclear policies, high tariffs, and limited state autonomy present issues for attracting beneficial long-term FDI to India.
The document summarizes the impact of foreign direct investment (FDI) in the retail sector in India. It notes that while FDI in retail can generate employment, increased investment, and benefits for customers through greater competition and variety, it may also displace unorganized local retailers and small businesses. A survey by the Confederation of Indian Industry found that most small and medium enterprises believe FDI in retail would increase their sales and new orders or contracts, though opinions were more mixed on impacts to employment.
This document is a project report submitted by Akash Rana for his M.Com degree in economics at Smt. Chandibai Himatmal Mansukhani College. The project is titled "FDI in Retail Sector of India" and was completed in the 2015-2016 academic year under the guidance of Professor Shyam Lilani. The report includes an acknowledgement section, declaration, executive summary, table of contents, and sections on the introduction to FDI, types of FDI, India's FDI policy and retail sector, impact of allowing FDI in retail, and issues/problems with FDI in India.
This document discusses foreign direct investment (FDI) in India's retail sector. It provides an overview of the retail sector and FDI policy in India. It notes that historically FDI was only allowed up to 51% for single brand retail and 100% for cash and carry wholesale, but the new policy will allow up to 51% for multi-brand retail. The document discusses the opportunities that FDI in retail provides, such as job creation and improvement of supply chain infrastructure, as well as challenges around competition and impact on small retailers. It concludes that FDI in retail will benefit the Indian economy if implemented carefully.
This document is a project report submitted by Nishant Singh to Sikkim Manipal University in partial fulfillment of an MBA degree. The report analyzes the role of foreign direct investment in the Indian retail sector. It begins with an abstract that summarizes the objectives of analyzing the impact of India's FDI policy in retail using a SWOT analysis. It then provides background on FDI and the retail sector in India. The literature review discusses previous research on determinants of FDI policies in India and factors influencing consumer retail store choice. The report will analyze India's legal framework for retail FDI, conduct a SWOT analysis, and provide conclusions and recommendations.
FDI in India has increased steadily since economic liberalization in the 1990s. Major sectors that have benefited from FDI include telecommunications. While FDI can increase productivity and competitiveness, there are also drawbacks such as local firms losing business. There is debate around allowing FDI in multi-brand retail, as it could displace many small retailers but improve consumer access to goods. Studies on FDI in India have found mixed impacts on growth, employment, and exports. Policy measures are needed to ensure FDI's benefits are shared widely and its costs managed.
Fdi in india:An analysis on the impact of fdi in india’s retail sectorSubhajit Ray
This presentation aims to briefly discuss the critical aspects of FDI in India, present a case study on the success of reforms in the telecommunications sector, analyze both sides of the arguments currently going on regarding FDI in retail and conclude with suggestive measures on the part of the government which can eliminate the negative effects of allowing FDI in India’s retail sector.
Foreign direct investment (FDI) refers to long term cross-border investment involving foreign management and technology transfer. There are inward, outward, and net FDI flows. India promotes productive FDI to stimulate industrialization. FDI increases capital, technology, employment, and aggregate supply and demand. However, FDI can reduce competition and domestic policy control. India's FDI policy allows up to 100% foreign ownership in some sectors with approval. Restrictive regulations, unclear policies, high tariffs, and limited state autonomy present issues for attracting beneficial long-term FDI to India.
The document summarizes the impact of foreign direct investment (FDI) in the retail sector in India. It notes that while FDI in retail can generate employment, increased investment, and benefits for customers through greater competition and variety, it may also displace unorganized local retailers and small businesses. A survey by the Confederation of Indian Industry found that most small and medium enterprises believe FDI in retail would increase their sales and new orders or contracts, though opinions were more mixed on impacts to employment.
This document is a project report submitted by Akash Rana for his M.Com degree in economics at Smt. Chandibai Himatmal Mansukhani College. The project is titled "FDI in Retail Sector of India" and was completed in the 2015-2016 academic year under the guidance of Professor Shyam Lilani. The report includes an acknowledgement section, declaration, executive summary, table of contents, and sections on the introduction to FDI, types of FDI, India's FDI policy and retail sector, impact of allowing FDI in retail, and issues/problems with FDI in India.
This document discusses foreign direct investment (FDI) in India's retail sector. It provides an overview of the retail sector and FDI policy in India. It notes that historically FDI was only allowed up to 51% for single brand retail and 100% for cash and carry wholesale, but the new policy will allow up to 51% for multi-brand retail. The document discusses the opportunities that FDI in retail provides, such as job creation and improvement of supply chain infrastructure, as well as challenges around competition and impact on small retailers. It concludes that FDI in retail will benefit the Indian economy if implemented carefully.
This document is a project report submitted by Nishant Singh to Sikkim Manipal University in partial fulfillment of an MBA degree. The report analyzes the role of foreign direct investment in the Indian retail sector. It begins with an abstract that summarizes the objectives of analyzing the impact of India's FDI policy in retail using a SWOT analysis. It then provides background on FDI and the retail sector in India. The literature review discusses previous research on determinants of FDI policies in India and factors influencing consumer retail store choice. The report will analyze India's legal framework for retail FDI, conduct a SWOT analysis, and provide conclusions and recommendations.
FDI in India has increased steadily since economic liberalization in the 1990s. Major sectors that have benefited from FDI include telecommunications. While FDI can increase productivity and competitiveness, there are also drawbacks such as local firms losing business. There is debate around allowing FDI in multi-brand retail, as it could displace many small retailers but improve consumer access to goods. Studies on FDI in India have found mixed impacts on growth, employment, and exports. Policy measures are needed to ensure FDI's benefits are shared widely and its costs managed.
Report on Impact of FDI in Retail in IndiaAkshay Seth
This report talks about the impact of FDI in Retail in India along with critically analyzing the versatility of the regulations which have been recently introduced for Multi Brand Retail
FDI in Multi-brand Retail (Issues and Challenges)Abee Sharma
In the year 2012 India faced severe balance of payment and trade deficit. This forced to bring about changes in Foreign Direct Investment [FDI] policy. India is the top most attractive economy for FDI among the rest of economies in world. The government has allowed FDI in to retail outlets owned by their domestic partners in a limited way for on?selling to retail customers. This provides a window to them for benefiting from the retail boom in the country. The present study aims to understand and analyze the challenges and opportunities faced by FDI Inflow and the future outlook towards FDI in multi brand retail Sector. It extrapolates that inward FDI can intensify competition and accelerate the process of innovation in the local Retail Sector. This paper tries to establish the need of the community to invite FDI in multi brand retailing. The final decision in this respect is yet to be taken by the government of India.
This document discusses FDI in multi-brand retail in India. It provides background on organized and unorganized retail sectors in India currently. It then outlines the history of FDI policies in India for single brand and multi-brand retail, including allowing up to 51% FDI in multi-brand retail with certain conditions like minimum investment amounts and sourcing from small local suppliers. The document addresses some of the major controversies around allowing FDI in multi-brand retail in India, such as potential job losses or gains, effects on prices and competition, need for foreign investment, and profits going overseas.
This document summarizes the pros and cons of foreign direct investment (FDI) in India. It discusses how FDI has enabled growth but may also negatively impact local retailers. Key points include that FDI is an important source of funding but infrastructure issues pose challenges. FDI is permitted in many sectors but not in arms, nuclear, railways, coal or mining. The US is one of the largest sources of FDI for India, investing billions across many industries.
The document provides an overview of foreign direct investment (FDI) in the retail industry in India. It discusses the benefits of FDI for farmers, suppliers and consumers through improved supply chain management and technology adoption. While FDI can benefit the economy through job creation and lower prices, there are also concerns about its impact on small retailers and employment. The document analyzes both sides of the debate around allowing FDI in multi-brand retail in India.
FDI in Indian retail market- oppertunities and challengesGuru Selvan
The document discusses foreign direct investment (FDI) in the Indian retail market, including opportunities and challenges. It notes that India has one of the top five retail markets in the world and allows 100% FDI in single brand retail and cash and carry, as well as 51% FDI in multi-brand retail. The impacts of FDI include accelerated retail market growth, benefits to farmers and consumers, and promotion of competition and infrastructure development. However, challenges include the need for Indian retailers to consolidate, potential job losses, high borrowing costs negatively impacting domestic retailers, and predatory pricing by global retailers wiping out domestic competition.
This document provides an overview of foreign direct investment (FDI) policies related to the retail sector in India. It defines key terms like organized and unorganized retail, and outlines India's historical restrictions on FDI in multi-brand retail. The document discusses the various entry options foreign players used prior to FDI policy changes, as well as the current policies allowing FDI in single-brand and cash-and-carry wholesale retail. It also examines concerns around partially opening the retail sector to FDI and limitations of India's present retail setup.
The document outlines several reasons for opposing foreign direct investment (FDI) in India's retail sector:
1. It would further skew the real estate market in favor of large developments, making housing less affordable.
2. Manufacturing jobs, which account for 30% of India's economy, would be negatively impacted as foreign companies outsource production.
3. Domestic unorganized retailers would struggle to compete and many could go out of business, leading to unemployment, as seen in Southeast Asian countries.
4. Allowing FDI in retail would not create as many jobs as claimed and could hurt entrepreneurship and disrupt existing supply chains and trade relationships.
This document discusses foreign direct investment (FDI) in multi-brand retail in India. It begins with background on the team members presenting and an outline of the presentation. It then provides definitions of FDI and foreign institutional investment (FII) and distinguishes between the two. The document discusses opportunities for FDI in retail in India such as benefits to farmers and consumers, as well as challenges such as political instability and public opposition. It analyzes the retail sector and provides sector-wise analysis of FDI inflows in India. The document concludes with a comparison of FDI in India and China.
FDI in retail is a controversial issue in India. While it could provide benefits like new technologies, jobs, and infrastructure; there are also concerns it could hurt small farmers and retailers. The government allows 100% FDI in single brands and 51% in multi-brand retail, but places restrictions to protect local interests. It will only be allowed in large cities and foreign companies must source 30% of products domestically. Overall FDI could help India's economy grow, but the effects must be monitored and issues addressed.
Impact of FDI on retail sector in IndiaKaran Tyagi
Foreign direct investment (FDI) refers to investment from one country into another country. Allowing FDI in India's retail sector could provide benefits like new technologies, capital, and management skills but may threaten small unorganized retailers. India's $250 billion retail sector is mostly unorganized but organized retail is growing at 15-20% annually. Major retailers in India include Pantaloon, Tata, Reliance, and others operating stores like Big Bazaar and Reliance Fresh. Common retail formats are mom-and-pop stores, department stores, shopping malls, e-commerce, discount stores, and vending machines.
IMPACT OF FDI ON UNORGANISED RETAIL SECTOR OF INDIA project reportAbid Siddiqui
This dissertation project report analyzes the impact of foreign direct investment (FDI) in the unorganized retail sector of India, using agro products as a case study. The report provides background on India's FDI policies in retail, outlines the objectives and methodology of the study. It then analyzes the data collected and interprets the findings. The key impacts identified include positive effects like increased foreign exchange reserves, improved prices and supply for farmers, development of small and medium enterprises, and negative effects such as reduced opportunities for middlemen. The conclusion is that FDI in retail can benefit consumers and the economy while also posing some challenges.
This project report provides an overview of foreign direct investment (FDI) in the retail sector of India. It discusses the history of FDI policy in India, including the recent changes allowing FDI in single-brand and multi-brand retail. The report examines the impact of FDI on the retail sector, including benefits such as increased investment and concerns about its effect on small retailers. It also explores the prerequisites for further expanding FDI in retail, such as developing supply chain infrastructure. The project was completed by a student at SMT. CHANDIBAI HIMATMAL MANSUKHANI COLLEGE in Mumbai, India under the guidance of a professor.
1) The document discusses foreign direct investment (FDI) in the retail sector in India, including the types of retail (single brand, multi-brand), current FDI policies that allow up to 100% in single brand and 51% in multi-brand retail, and the impacts of FDI in retail such as increased competition and quality/variety of products.
2) It also outlines trends in FDI, including growth in specialty retail stores, the continued dominance of unorganized traditional retail, and expansion in smaller cities and towns.
3) FDI provides benefits to India like access to markets and technology, but India must also develop infrastructure and skills to encourage investment and benefit from it.
This document discusses foreign direct investment (FDI) in India. It provides statistics showing that FDI in India has increased over time but decreased in 2010-2011. The top sectors for FDI are services, telecommunications, construction, and computer software and hardware. The top sources of FDI are Mauritius, Singapore, the US and the UK. The document also examines FDI trends in various economic sectors and the benefits of FDI for the Indian economy.
Fdi in indian retail sector analysis of competition in agri food sectoruttamde
The document provides an overview of the Indian retail sector and foreign direct investment (FDI) policy related to retail in India. It discusses the various entry options used by foreign players prior to 2006 when FDI was not allowed in retail. It outlines the key aspects of India's FDI policy, including allowing 100% FDI in cash-and-carry wholesale trading and up to 51% FDI in single-brand retail under government approval. The document also notes the prospective changes announced in 2011 to allow 51% FDI in multi-brand retail and 100% in single-brand retail, subject to 30% procurement from small Indian suppliers.
FDI has both positive and negative potential impacts on rural economies. It can increase jobs in agriculture services, processing, and supply chains, but may also lead to job losses and wage inequality. The Indian government allows 100% FDI in many agriculture sectors like fertilizers, tea, and coffee under an automatic route. However, FDI often favors urban areas and there are challenges in ensuring equal development and access for rural and poor communities. Policies aim to promote technology sharing and sourcing from small industries, but more focus on agriculture-based industries and rewards for farmers could benefit rural regions. Strong regulation is needed to manage resources and address political challenges around FDI policy.
This document provides an overview of foreign direct investment (FDI) in India. It defines FDI and outlines the government's strategies toward FDI over time from being anti-FDI in the 1960s-1970s to becoming more pro-FDI after 1991. The document discusses the types of FDI and factors influencing FDI inflows into India. It also notes regional inequality issues and does a SWOT analysis of FDI in India's retail sector. Case studies on POSCO and comparisons of FDI between India and China are presented. In conclusion, the document analyzes the impact of FDI on the Indian economy.
The document discusses foreign direct investment (FDI) in India. It defines FDI and explains that it refers to investment from foreign companies into domestic structures, equipment, and organizations in India. It outlines the types of FDI, factors affecting FDI, and the significance and limitations of FDI for India's economy. Additionally, it provides data on growth trends in FDI in India over time, popular destinations for FDI, and both advantages and limitations of allowing FDI in India's retail sector. Experts are cited discussing both benefits and risks of India's reliance on FDI.
Foreign Direct Investment in India (FDI)Ameya Gandhi
This document lists the group members of a project and provides information about foreign direct investment (FDI) in India. It summarizes key sectors that receive FDI in India like services, manufacturing, retail, and tourism. It also outlines India's FDI policies and restrictions in different sectors. Major investing countries in India include Mauritius, Singapore, USA, and UK. The document emphasizes the need to attract quality FDI and focus on export-oriented investments to benefit the local economy.
FDI in retail has the potential to benefit consumers through more choices, lower prices, and improved quality and supply chain efficiency. However, there are also risks like job losses for small retailers and increased competition. India's retail sector is currently dominated by unorganized and family-run small shops. The document discusses the various formats through which FDI can enter India like franchises, wholesale trading, and manufacturing subsidiaries. It also provides an overview of the growth prospects and impact of organized retail on the Indian economy. While FDI can boost investment and infrastructure, policymakers will need to ensure a level playing field for domestic retailers as well.
FDI allows foreign investment in retail in India. Single-brand retail allows up to 51% FDI for stores selling a single international brand. Multi-brand retail, which allows foreign stores to sell multiple brands, is currently not permitted. Organized retail makes up 3-4% of the market while 96% is unorganized. FDI could impact unorganized retailers through unfair competition but benefit organized retailers and farmers through better prices and supply chains. It may also benefit consumers through variety and quality while creating jobs. Issues around its impact still need monitoring and regulation.
Report on Impact of FDI in Retail in IndiaAkshay Seth
This report talks about the impact of FDI in Retail in India along with critically analyzing the versatility of the regulations which have been recently introduced for Multi Brand Retail
FDI in Multi-brand Retail (Issues and Challenges)Abee Sharma
In the year 2012 India faced severe balance of payment and trade deficit. This forced to bring about changes in Foreign Direct Investment [FDI] policy. India is the top most attractive economy for FDI among the rest of economies in world. The government has allowed FDI in to retail outlets owned by their domestic partners in a limited way for on?selling to retail customers. This provides a window to them for benefiting from the retail boom in the country. The present study aims to understand and analyze the challenges and opportunities faced by FDI Inflow and the future outlook towards FDI in multi brand retail Sector. It extrapolates that inward FDI can intensify competition and accelerate the process of innovation in the local Retail Sector. This paper tries to establish the need of the community to invite FDI in multi brand retailing. The final decision in this respect is yet to be taken by the government of India.
This document discusses FDI in multi-brand retail in India. It provides background on organized and unorganized retail sectors in India currently. It then outlines the history of FDI policies in India for single brand and multi-brand retail, including allowing up to 51% FDI in multi-brand retail with certain conditions like minimum investment amounts and sourcing from small local suppliers. The document addresses some of the major controversies around allowing FDI in multi-brand retail in India, such as potential job losses or gains, effects on prices and competition, need for foreign investment, and profits going overseas.
This document summarizes the pros and cons of foreign direct investment (FDI) in India. It discusses how FDI has enabled growth but may also negatively impact local retailers. Key points include that FDI is an important source of funding but infrastructure issues pose challenges. FDI is permitted in many sectors but not in arms, nuclear, railways, coal or mining. The US is one of the largest sources of FDI for India, investing billions across many industries.
The document provides an overview of foreign direct investment (FDI) in the retail industry in India. It discusses the benefits of FDI for farmers, suppliers and consumers through improved supply chain management and technology adoption. While FDI can benefit the economy through job creation and lower prices, there are also concerns about its impact on small retailers and employment. The document analyzes both sides of the debate around allowing FDI in multi-brand retail in India.
FDI in Indian retail market- oppertunities and challengesGuru Selvan
The document discusses foreign direct investment (FDI) in the Indian retail market, including opportunities and challenges. It notes that India has one of the top five retail markets in the world and allows 100% FDI in single brand retail and cash and carry, as well as 51% FDI in multi-brand retail. The impacts of FDI include accelerated retail market growth, benefits to farmers and consumers, and promotion of competition and infrastructure development. However, challenges include the need for Indian retailers to consolidate, potential job losses, high borrowing costs negatively impacting domestic retailers, and predatory pricing by global retailers wiping out domestic competition.
This document provides an overview of foreign direct investment (FDI) policies related to the retail sector in India. It defines key terms like organized and unorganized retail, and outlines India's historical restrictions on FDI in multi-brand retail. The document discusses the various entry options foreign players used prior to FDI policy changes, as well as the current policies allowing FDI in single-brand and cash-and-carry wholesale retail. It also examines concerns around partially opening the retail sector to FDI and limitations of India's present retail setup.
The document outlines several reasons for opposing foreign direct investment (FDI) in India's retail sector:
1. It would further skew the real estate market in favor of large developments, making housing less affordable.
2. Manufacturing jobs, which account for 30% of India's economy, would be negatively impacted as foreign companies outsource production.
3. Domestic unorganized retailers would struggle to compete and many could go out of business, leading to unemployment, as seen in Southeast Asian countries.
4. Allowing FDI in retail would not create as many jobs as claimed and could hurt entrepreneurship and disrupt existing supply chains and trade relationships.
This document discusses foreign direct investment (FDI) in multi-brand retail in India. It begins with background on the team members presenting and an outline of the presentation. It then provides definitions of FDI and foreign institutional investment (FII) and distinguishes between the two. The document discusses opportunities for FDI in retail in India such as benefits to farmers and consumers, as well as challenges such as political instability and public opposition. It analyzes the retail sector and provides sector-wise analysis of FDI inflows in India. The document concludes with a comparison of FDI in India and China.
FDI in retail is a controversial issue in India. While it could provide benefits like new technologies, jobs, and infrastructure; there are also concerns it could hurt small farmers and retailers. The government allows 100% FDI in single brands and 51% in multi-brand retail, but places restrictions to protect local interests. It will only be allowed in large cities and foreign companies must source 30% of products domestically. Overall FDI could help India's economy grow, but the effects must be monitored and issues addressed.
Impact of FDI on retail sector in IndiaKaran Tyagi
Foreign direct investment (FDI) refers to investment from one country into another country. Allowing FDI in India's retail sector could provide benefits like new technologies, capital, and management skills but may threaten small unorganized retailers. India's $250 billion retail sector is mostly unorganized but organized retail is growing at 15-20% annually. Major retailers in India include Pantaloon, Tata, Reliance, and others operating stores like Big Bazaar and Reliance Fresh. Common retail formats are mom-and-pop stores, department stores, shopping malls, e-commerce, discount stores, and vending machines.
IMPACT OF FDI ON UNORGANISED RETAIL SECTOR OF INDIA project reportAbid Siddiqui
This dissertation project report analyzes the impact of foreign direct investment (FDI) in the unorganized retail sector of India, using agro products as a case study. The report provides background on India's FDI policies in retail, outlines the objectives and methodology of the study. It then analyzes the data collected and interprets the findings. The key impacts identified include positive effects like increased foreign exchange reserves, improved prices and supply for farmers, development of small and medium enterprises, and negative effects such as reduced opportunities for middlemen. The conclusion is that FDI in retail can benefit consumers and the economy while also posing some challenges.
This project report provides an overview of foreign direct investment (FDI) in the retail sector of India. It discusses the history of FDI policy in India, including the recent changes allowing FDI in single-brand and multi-brand retail. The report examines the impact of FDI on the retail sector, including benefits such as increased investment and concerns about its effect on small retailers. It also explores the prerequisites for further expanding FDI in retail, such as developing supply chain infrastructure. The project was completed by a student at SMT. CHANDIBAI HIMATMAL MANSUKHANI COLLEGE in Mumbai, India under the guidance of a professor.
1) The document discusses foreign direct investment (FDI) in the retail sector in India, including the types of retail (single brand, multi-brand), current FDI policies that allow up to 100% in single brand and 51% in multi-brand retail, and the impacts of FDI in retail such as increased competition and quality/variety of products.
2) It also outlines trends in FDI, including growth in specialty retail stores, the continued dominance of unorganized traditional retail, and expansion in smaller cities and towns.
3) FDI provides benefits to India like access to markets and technology, but India must also develop infrastructure and skills to encourage investment and benefit from it.
This document discusses foreign direct investment (FDI) in India. It provides statistics showing that FDI in India has increased over time but decreased in 2010-2011. The top sectors for FDI are services, telecommunications, construction, and computer software and hardware. The top sources of FDI are Mauritius, Singapore, the US and the UK. The document also examines FDI trends in various economic sectors and the benefits of FDI for the Indian economy.
Fdi in indian retail sector analysis of competition in agri food sectoruttamde
The document provides an overview of the Indian retail sector and foreign direct investment (FDI) policy related to retail in India. It discusses the various entry options used by foreign players prior to 2006 when FDI was not allowed in retail. It outlines the key aspects of India's FDI policy, including allowing 100% FDI in cash-and-carry wholesale trading and up to 51% FDI in single-brand retail under government approval. The document also notes the prospective changes announced in 2011 to allow 51% FDI in multi-brand retail and 100% in single-brand retail, subject to 30% procurement from small Indian suppliers.
FDI has both positive and negative potential impacts on rural economies. It can increase jobs in agriculture services, processing, and supply chains, but may also lead to job losses and wage inequality. The Indian government allows 100% FDI in many agriculture sectors like fertilizers, tea, and coffee under an automatic route. However, FDI often favors urban areas and there are challenges in ensuring equal development and access for rural and poor communities. Policies aim to promote technology sharing and sourcing from small industries, but more focus on agriculture-based industries and rewards for farmers could benefit rural regions. Strong regulation is needed to manage resources and address political challenges around FDI policy.
This document provides an overview of foreign direct investment (FDI) in India. It defines FDI and outlines the government's strategies toward FDI over time from being anti-FDI in the 1960s-1970s to becoming more pro-FDI after 1991. The document discusses the types of FDI and factors influencing FDI inflows into India. It also notes regional inequality issues and does a SWOT analysis of FDI in India's retail sector. Case studies on POSCO and comparisons of FDI between India and China are presented. In conclusion, the document analyzes the impact of FDI on the Indian economy.
The document discusses foreign direct investment (FDI) in India. It defines FDI and explains that it refers to investment from foreign companies into domestic structures, equipment, and organizations in India. It outlines the types of FDI, factors affecting FDI, and the significance and limitations of FDI for India's economy. Additionally, it provides data on growth trends in FDI in India over time, popular destinations for FDI, and both advantages and limitations of allowing FDI in India's retail sector. Experts are cited discussing both benefits and risks of India's reliance on FDI.
Foreign Direct Investment in India (FDI)Ameya Gandhi
This document lists the group members of a project and provides information about foreign direct investment (FDI) in India. It summarizes key sectors that receive FDI in India like services, manufacturing, retail, and tourism. It also outlines India's FDI policies and restrictions in different sectors. Major investing countries in India include Mauritius, Singapore, USA, and UK. The document emphasizes the need to attract quality FDI and focus on export-oriented investments to benefit the local economy.
FDI in retail has the potential to benefit consumers through more choices, lower prices, and improved quality and supply chain efficiency. However, there are also risks like job losses for small retailers and increased competition. India's retail sector is currently dominated by unorganized and family-run small shops. The document discusses the various formats through which FDI can enter India like franchises, wholesale trading, and manufacturing subsidiaries. It also provides an overview of the growth prospects and impact of organized retail on the Indian economy. While FDI can boost investment and infrastructure, policymakers will need to ensure a level playing field for domestic retailers as well.
FDI allows foreign investment in retail in India. Single-brand retail allows up to 51% FDI for stores selling a single international brand. Multi-brand retail, which allows foreign stores to sell multiple brands, is currently not permitted. Organized retail makes up 3-4% of the market while 96% is unorganized. FDI could impact unorganized retailers through unfair competition but benefit organized retailers and farmers through better prices and supply chains. It may also benefit consumers through variety and quality while creating jobs. Issues around its impact still need monitoring and regulation.
This document provides an overview of the retail sector in India and discusses the prospects and perils of allowing foreign direct investment (FDI) in retail. It notes that India's retail sector is highly fragmented, with over 12 million small, family-owned shops. Allowing FDI in retail could strengthen infrastructure, improve supply chains, and create jobs, but it may also negatively impact small retailers and the livelihoods of those employed in the retail sector. There is debate around whether FDI in retail will benefit farmers and consumers or hurt small businesses. The document examines both sides of the issue.
This document discusses foreign direct investment (FDI) and its impact on retail trade in India. It notes that while India is tipped to become an economic superpower, liberalizing FDI further could have both benefits and drawbacks. The objectives of the study are to examine the relationships between FDI and Indian dependence, price competition, and employment. The research methodology involved surveying 100 academics in Aurangabad, India. Tables show the respondents' profiles and opinions on allowing 51% FDI in retail, with a majority disagreeing or strongly disagreeing. The conclusion is that while retail FDI could boost the economy initially, over-reliance on multinational corporations could negatively impact India's economy and politics in the long run
A project report on analytical study of foreign direct investment in indiaProjects Kart
This document is a project report submitted for a Master's degree that analyzes foreign direct investment in India. It includes sections on introduction/definitions of key terms, history of FDI, objectives of the study, research methodology, and conclusions/recommendations. The introduction provides definitions of foreign direct investment and outlines its importance for both investing countries and host countries. It notes that FDI has grown significantly in recent decades and outlines several theories for why companies engage in FDI.
Foreign Direct Investment and Indian Economy pptDr.houkat1968
This document discusses foreign direct investment (FDI) in India. It provides definitions of FDI and outlines its benefits for host countries, including market access, resources/assets, and efficiency gains. The document then reviews India's historical FDI inflows, noting higher growth post-1991 reforms. It analyzes FDI trends by source country, Indian state, and economic sector. Key findings include that services, construction and telecom attract most FDI, and Maharashtra, Delhi and southern states receive the majority. The document concludes that while India's FDI has increased significantly with reforms, targeted policies are still needed to maximize benefits and equitable distribution.
This dissertation examines the impact of foreign direct investment (FDI) on India's unorganized retail sector, using the agro products industry as a case study. The student conducted this research under the guidance of faculty at Integral University to earn a Bachelor's degree in Business Administration. The report includes an introduction on FDI policies in India's retail sector, a literature review, research methodology, data analysis, findings, and conclusions. The key finding is that while large foreign retailers bringing new technologies and supply chain expertise could benefit consumers, they also pose challenges for local kirana stores in terms of competition and convenience. The report examines how foreign entrants might balance these impacts as they seek to gain a foothold in India's retail
This document discusses foreign direct investment (FDI) in India across several sectors. It defines FDI and compares it to foreign institutional investment. It outlines India's FDI policies for sectors like retail, telecom, pharmaceuticals, IT, automobiles and others. It discusses the types of FDI, top investing countries, trends over time, key players and investments, and impact of FDI policies on employment, technology, and economic growth in India. Charts and figures are provided on FDI flows and sector-wise cumulative inflows from 2000-2013.
The document provides an overview of the retail industry in India. Some key points:
- The Indian retail market is expected to reach $1.3 trillion by 2020 from $672 billion in 2016 growing at a CAGR of 24.5%. Modern retail is projected to grow from $60 billion to $180 billion during 2015-2020.
- Organized retail penetration is expected to increase to 24% by 2020 from 8% in 2015 as income levels rise and consumers demand greater quality and selection. Food and grocery accounts for the largest share at 69% of the retail market.
- Major players in the industry include Reliance Retail, Aditya Birla Retail, Pantaloon Retail
FDI IN INDIAN RETAIL SECTOR-WILL MARCH TOWARDS INCLUSIVE GROWTHSuganya Pragasam
This document discusses foreign direct investment (FDI) in India's retail sector and whether it will lead to inclusive growth. It defines inclusive growth as ensuring opportunities are accessible to all segments of society, including the poorest. The document reviews the impacts of FDI on various stakeholders like farmers, small retailers, employment and consumers based on literature. While FDI promises benefits like jobs and lower prices, the review finds it could negatively impact small farmers, retailers and employment by displacing local suppliers and businesses. The conclusion is that FDI requires regulation to protect local players and may not create truly inclusive growth by ignoring certain segments of society.
The document discusses foreign direct investment (FDI) in retail in India. It outlines the organized and unorganized sectors of retail in India. The organized retail sector is nascent, while the unorganized sector employs over 12 million people and accounts for over 10% of India's GDP. Allowing FDI in retail could help address issues like supply chain inefficiencies, but there are concerns it may negatively impact small retailers and farmers. The document analyzes arguments for and against FDI before cautiously concluding that India should allow up to 51% FDI in multi-brand retail.
Pawan Kawan presented on foreign direct investment in India's retail sector. He discussed that FDI involves international investment and production. India has been the second largest FDI destination after China from 2010-2012. The retail sector accounts for 14-15% of India's GDP and is split between organized and unorganized markets. Recently, the Indian government allowed up to 51% FDI in multi-brand retail. FDI in retail is expected to benefit the Indian economy, create jobs, help farmers, and provide advantages to consumers through more choice and variety of products.
This document discusses foreign direct investment (FDI) in India, particularly in the retail sector. It provides an overview of India's FDI policies over time, starting in 1991 when FDI was first allowed selectively and increasing allowances over subsequent years. The document also outlines the opportunities that FDI in retail provides, such as employment generation and addressing supply chain issues, as well as challenges like competition from small retailers and emerging human resource needs. Overall it examines the growth of the retail sector in India and implications of allowing increased FDI.
The document discusses the introduction of foreign direct investment (FDI) in India's retail sector. It notes that while FDI could provide benefits like new jobs, technology, and quality improvements for consumers, there has also been strong opposition from small shop owners who fear being unable to compete with large multinational retailers. The document examines both sides of the issue and considers the experiences of other countries that have allowed FDI in retail as it discusses whether India's retail sector will see more opportunities or challenges from foreign investment.
The document discusses India allowing foreign direct investment in retail. It outlines the key policies: allowing 51% FDI in multi-brand retail and 100% in single-brand retail. Foreign retailers must invest $100 million with half in infrastructure and source 30% from small/micro Indian industries. Retail investments are approved by the government and only allowed in cities over 1 million people. The document also discusses Walmart seeking clarification on sourcing rules and investigations into potential bribery in Mexico.
FDI in retail refers to foreign investment in companies operating in the retail sector in another country. Allowing FDI in India's retail sector could provide benefits like new technologies and skills, jobs, and higher prices for farmers, but it may also displace many small shops and retailers. The document discusses views on both the pros and cons of FDI in India's retail sector, focusing on how it impacts farmers, small retailers, food prices and supply chain efficiency. It concludes that fears of small shops being displaced are exaggerated and farmers may benefit from more competitive retail options.
FDI occurs when a firm invests directly in another country to produce or market a product. There are two main forms of FDI: establishing a new operation through a greenfield investment, or acquiring an existing foreign firm. FDI is important for India as it can induce higher overall investment and economic growth, use unutilized natural resources, improve investor confidence, and earn foreign exchange to boost the economy. However, lack of infrastructure and political instability have deterred some FDI in India, while complicated taxes, bureaucracy, corruption, and poor infrastructure also present barriers. The global recession has impacted FDI from the US into India, though investments in sectors like retail and infrastructure may still grow.
This document discusses FDI in multi-brand retail in India. It provides background on organized and unorganized retail sectors in India. It outlines the government's proposal to allow 51% FDI in multi-brand retail subject to certain conditions like mandatory 30% sourcing from small industries and minimum $100 million investment. It then addresses several controversies around job losses, monopolies, need for foreign retailers, East India Company comparison, and impact on smaller states. It argues that FDI will benefit India through better infrastructure, curbing inflation, preventing labor exploitation and enabling exports. It concludes saying India must be open to change for prosperity.
This document discusses the potential effects of foreign direct investment (FDI) in multi-brand retail in India. It covers the historical trends in FDI in India, the current state of FDI, and the organization of India's retail industry. It then analyzes the potential impacts of FDI in multi-brand retail on different stakeholders, including retail workers who may lose jobs, local shopkeepers who may be put out of business, wholesale shopkeepers who will be disintermediated, and producers who may benefit from better market access. The document cautions that while producers may benefit, many retail and supply chain workers are likely to experience job losses or business closures if large foreign retailers enter the market.
The document discusses Foreign Direct Investment (FDI) in India, specifically in the retail sector. It defines FDI and provides examples of major foreign retailers interested in the Indian market. It outlines the Indian government's policies that allow 51% FDI for multi-brand retail and 100% for single-brand. The document also discusses the types of FDI, sectors that attract FDI in India, and both the advantages and disadvantages of allowing FDI in the retail sector.
Retail is a sunrise sector in the Indian business world. In the past few years, Indian has seen a revolution in the retail sector. More and more foreign retailers are now eyeing India as a perfect investment destination for retail ventures. Not only from the investment side , but also from the employment angle as it represents a large employment opportunity for people with diverse skill set
The document discusses FDI (foreign direct investment) in India's retail sector. It provides background on FDI and its history in India. It then discusses India's retail sector and the organized vs unorganized components. The document outlines India's past and current FDI policies, particularly regarding single brand and multi-brand retail. It discusses the views of various individuals and groups who support or oppose allowing FDI in multi-brand retail in India.
FDI in retail sector allows foreign companies to invest in India's retail industry. India has gradually opened up FDI in retail since the 1990s, allowing wholesale cash-and-carry and later single-brand retail. In 2011-2012, it further allowed 51% FDI in multi-brand retail. Supporters argue this will modernize retail, reduce food waste, create jobs, and increase tax revenues. Critics worry local businesses may be forced out and jobs may focus more on machinery than wages. The retail sector is a large part of India's economy but was previously dominated by small shops.
The document discusses FDI in the Indian retail industry. It begins with definitions of FDI and reasons why countries pursue it. It then discusses the global and Indian retail scenarios, noting countries that allow 100% FDI in multi-brand retail. Major retailers in India like Pantaloon are introduced, and retail formats are defined. The document also discusses views on the impact of allowing FDI in multi-brand retail in India, including potential job creation but also threats to small retailers. Government policies on FDI in retail over time are also summarized.
Retail is the interface between producers and individual consumers for personal consumption. Retailers stock goods from producers and sell them to consumers at a margin of profit. Retailing contributes 14% to India's GDP but only 5% comes from organized retail. India is the 3rd most attractive destination for foreign direct investment in retail. Allowing FDI in retail could improve efficiency and living standards by providing consumers access to global brands, improved quality and variety of products, and increased competition. However, it could also displace labor and destroy traditional retail sectors.
study of Indian retail industry. its revenue generation, employment, and the future growth rate. Indian retail Industry is growing at the faster rate and it contributes nearly 22% for the GDP. students will know about the forms of retail industry in India, various organised retail store and format of store. This is a study conducted by SUBIN SURESH PGDM (KIRLOSKAR INSTITUTE OF ADVANCED MANAGEMENT STUDIES)
- The document discusses opportunities and challenges of allowing foreign direct investment (FDI) in India's retail sector. It notes that FDI can help modernize supply chains, increase farmer incomes, and provide more options for consumers. However, it may also negatively impact small retailers and middlemen.
- The document outlines the history of FDI policy in India since liberalization in the 1990s. It also describes the differences between single-brand and multi-brand retail FDI rules recently introduced by the Indian government.
- Tables in the document show sectors that have attracted the most FDI to India from 2000-2013, with services, construction, and telecom attracting the largest amounts. The objectives and methodology of
The document discusses FDI in Indian retail and its implications. It provides background on the large size and growth of Indian retail market. While the government currently allows only single-brand retail FDI, there is debate around fully allowing multi-brand FDI. Proponents argue it could improve supply chains and lower prices. Opponents argue it may displace small retailers. The document recommends a gradual opening to FDI along with support for domestic players and regulations to address issues like predatory pricing.
FDI refers to foreign direct investment. The Indian government has decided to allow 51% FDI in multi-brand retail and 100% FDI in single-brand retail. However, there is opposition from political parties, unorganized retail sectors, and social groups. Supporters argue FDI will create jobs, boost economic growth, help farmers and local industries, and remove middlemen. Critics argue FDI will displace small retailers and farmers, drain revenues out of India, and hurt local industries and employment. The potential impacts of FDI in retail are widely debated.
The document discusses the potential impacts of allowing foreign direct investment in India's retail sector. Some key advantages mentioned include job creation, lower prices and more options for consumers, improved infrastructure and supply chain management, and better prices and contracts for farmers. However, disadvantages could include loss of domestic market share for local retailers, loss of small business and retail jobs, and more revenue leaving India. The overall impacts are still uncertain and will depend on how policies are implemented over time.
Foreign direct investment (FDI) in India's retail sector could have both benefits and disadvantages. Potential benefits include job creation, infrastructure development, lower prices and more options for consumers, and more stable incomes for farmers. However, small retailers may lose business and jobs to large foreign companies. The impacts of FDI in retail will depend on how the country's economy and businesses adapt over time. While increased competition from international chains could hurt domestic retailers, FDI may also help address infrastructure issues and reduce inefficiencies. The debate around FDI in India's retail sector considers both sides of these issues.
- The document discusses foreign direct investment (FDI) in India's retail sector, which has grown substantially in recent years.
- In 2011-2012, the Indian government approved FDI in single-brand retail up to 100% ownership and placed reforms for multi-brand retail on hold amid opposition.
- Major foreign retailers had previously entered the Indian market through formats like cash-and-carry wholesale and franchising.
- While organized retail is still small, India's retail market is projected to reach $833 billion by 2013 and $1.3 trillion by 2018, presenting opportunities for foreign investment.
Retail industry in India is undoubtingly one of the fastest growing retail industry in the world. It is the largest among all industries accounting to 10 per cent of the country GDP and employs around 8 per cent of the workforce.
This document discusses political factors affecting foreign direct investment (FDI) in the retail industry in India. It provides background on FDI and why countries seek it. It then discusses India's regulations around FDI in retail, allowing up to 51% in multi-brand retail and 100% in single-brand retail. The benefits of FDI in retail include stimulating investment in stressed retail companies, generating employment, and increasing tax revenues. However, drawbacks include fears of domestic companies losing ownership and small enterprises being unable to compete with large foreign companies.
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.
The document provides an overview of the retail sector in India. It discusses how the sector has historically been dominated by small, unorganized retailers but is now opening up to foreign investment. Recent policy changes now allow up to 51% FDI in multi-brand retail and 100% in single-brand retail. However, there is still debate around the impact this will have on small retailers and whether it will ultimately benefit consumers through increased competition and supply chain improvements.
- Retailing in India accounts for 14-15% of GDP and is one of the top five retail markets worldwide, valued at $500 billion. However, as of 2013, it was dominated by small, local shops rather than organized retail chains.
- Organized retail makes up only 7% of the market but is growing, expected to reach 20% by 2020. In 2011, several major Indian retail groups had expanded across India but on a smaller scale than international retailers.
- In 2012, the government allowed 51% FDI in multi-brand retail and 100% FDI in single-brand retail, which was expected to further boost organized retail and trigger investment in retail and backend infrastructure. However, growth continues
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Tags: Information Security, ISO/IEC 27001, ISO/IEC 42001, Artificial Intelligence, GDPR
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A workshop hosted by the South African Journal of Science aimed at postgraduate students and early career researchers with little or no experience in writing and publishing journal articles.
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A review of the growth of the Israel Genealogy Research Association Database Collection for the last 12 months. Our collection is now passed the 3 million mark and still growing. See which archives have contributed the most. See the different types of records we have, and which years have had records added. You can also see what we have for the future.
2. TABLE OF CONTENTS
•
Overview of retail sector
•
Division of retail industry
o
o
Organized retailing
Unorganized retailing
•
FDI and its benefits
•
FDI
o
o
Single Brand Retail
Multi Brand Retail
•
Effects of FDI
•
Issues immerged
•
DELHI Issue
•
Current scenario in fdi retail
•
Advantages, disadvantages, conclusion
3. Overview of retail sector
•
Retailing in India is one of the
pillars of its economy and
accounts for 14 to 15 percent of
its GDP
•
The Indian retail market is
estimated to be
US$ 450 billion and one of the
top five retail markets in the
world by economic value.
•
India's retail industry is largest
employer of India, employs
about 44 million Indians (3.3% of
Indian population)
4. DIVISION OF RETAIL INDUSTRY
The retail industry is mainly divided into :Organized retailing
Unorganized retailing
5. ORGANIZED RETAILING
Organized retailing refers to trading activities undertaken by
licensed retailers, that is, those who are registered for sales tax,
income tax, etc.
These includes,
the publicly traded supermarkets, corporate-backed hypermarkets and
retail chains,
and also the privately owned large retail businesses.
6. UNORGANIZED RETAILING
Unorganized retailing refers to the traditional formats of low-
cost retailing
for example,
the local corner shops,
owner manned general stores,
paan/beedi shops, convenience stores,
hand cart
pavement vendors
7. ORGANISED VS UNORGANISED RETAIL AT GLOBAL LEVEL
US
Taiwan
Malaysia
Thailand
Organised
Indonesia
Unorganised
China
India
0
20
40
60
80
100
8. THE INDIAN RETAIL MARKET
Supermarkets and similar organized retail accounted for just 4%
of the market
India has highest number
of outlets per person (7 per
thousand), Indian retail space per capita at 2 sq ft (0.19 m2)/
person is lowest in the world, Indian retail density of 6 percent
is highest in the world
9.
10. CHALLENGES
To become a truly flourishing industry, retailing in India needs to cross some
hurdles:
A McKinsey study claims retail productivity in India is very low compared to
international peer measures. For example, the labor productivity in Indian
retail was just 6% of the labor productivity in United States in 2010.
Geographically dispersed population
Absence of developed supply chain, and little use of IT systems
Low skill level for retailing management
11. WHAT IS FDI ?
FDI is a direct investment into production or business in a
country by an individual or company of another country
Mostly by buying a company in the target country or by
expanding operations of an existing business in that country
Such investments can take place for many reasons, including
to take advantage of cheaper wages, special investment
privileges (e.g. Tax exemptions) offered by the country.
12. WHY COUNTRIES SEEK FDI ?
Domestic capital is inadequate for purpose of economic
growth
Foreign capital is usually essential, at least as a temporary
measure, during the period when the capital market is in the
process of development
Foreign capital usually brings it with other scarce productive
factors like technical know how, business expertise and
knowledge
13. WHAT ARE THE MAJOR BENEFITS OF FDI
Improves forex (system for dealing in the currencies
of other countries)position of the country
Helps in transfer of new technologies, management
skills
Increases competition within the local market and
this brings higher efficiencies
Helps in increasing exports
Increases tax revenues
Employment generation and increase in production
14. WHAT IS SCOPE OF FDI IN INDIA? WHY WORLD IS
LOOKING TOWARDS INDIA FOR FDI
India is the 3rd largest economy of the world.
In last few years, certainly foreign investments have
shown upward trends but the strict FDI policies have
put hurdles in the growth in this sector.
Some of the major economic sectors where India can
attract investment are as follows:Telecommunications, Apparels, Information
technology, Pharma, Auto parts, Jewelry, Chemicals
15. WHY INDIA FOR RETAIL SECTOR…?
We are the second highest producer of fruits and vegetables in the
world but still we are not able to utilize it properly because of
inadequate infrastructure facilities.
It will reduce pre and post harvest wastage/losses and thus help
control food inflation.
It will create 1.5 million more jobs in 5 years. Apart from the huge
number of indirect employment.
It will increase competition which is always beneficial for the
customer.
It will remove the middleman from the equation. It will reduce
costs which in turn will reduce prices.
16.
17. BRIEF HISTORY
•
In January 2012, Indian government continues the hold on retail reforms for
multi-brand stores.
•
On 14 September 2012, the government of India announced the opening of FDI in
multi-brand retail, subject to approvals by individual states. This decision was
welcomed by economists and the markets, but caused protests and an upheaval
in India's central government's political coalition structure.
•
On 20 September 2012, the Government of India formally notified the FDI
reforms for single and multi brand retail, thereby making it effective under Indian
law.
•
On 7 December 2012, the Federal Government of India allowed 51% FDI in multibrand retail in India. The government managed to get the approval of multi-brand
retail in the parliament despite heavy uproar from the opposition
18.
19.
20. FDI IN SINGLE BRAND RETAIL
In-principle approval granted for increase in FDI in single brand retail from
51% to 100% under the approval route. This is subject to, inter alia, the
following conditions:
Products to be sold under the same brand internationally.
Foreign investor must be the owner of the brand.
Single brand retail would cover only products branded during
manufacture.
For FDI above 51%, 30% sourcing must be from SMEs.
21. FDI IN MULTI BRAND RETAIL
In–principle approval has been granted for FDI in multi-brand retail up to
route. This is subject to, inter alia, the following conditions:
51% under the approval
Minimum amount to be brought in by the foreign investor to be USD 100 million.
At least 50% of the total FDI must be invested in back-end infrastructure (includes capital
expenditure on all activities, excluding front-end units. Excludes expenditure on land cost and
rentals).
30% procurement of manufactured/ processed products must be from SMEs.
Government to have first right on procurement of agricultural products.
Retail sales locations may be set up only in cities with a population of more than 10 lakh as per
2011 Census and may also cover an area of 10 kms around the municipal/urban agglomeration
limits of such cities.
23. IMPACT ON FARMERS
•
Small farmer faces post-harvest losses at farm because of poor
roads, inadequate storage technologies, inefficient supply chains and
farmer's inability to bring the produce into retail markets
•
Government claims India's post-harvest losses is 40%, on average, every
year for each farmer, by an report by Ministry of Agriculture on post
harvest losses it is from 0.3% to 18%
•
Aim to provide farmers a remunerative price for crops in comparison to
hard-bargaining “Mandi agents” . Farmers gets 1/3 in grains and 15% in
horticulture
•
"Direct Farm Project" in Punjab, where 110 farmers have been connected
with Bharti Walmart for sourcing fresh vegetables hence reducing waste
and bringing fresh produce
24. IMPACT ON CONSUMERS
Consumers stand to gain most because :
Check on rising retail inflation via competitive
prices, stable prices, back hand infrastructure and
proper supply chain
• Improvement in product quality
• Time reduction in product search
• Reduction in travel time in large cities to different
location of specialty markets
•
25. IMPACT ON GOVERNANCE
•
FDI Reforms will lead to greater FDI inflows
•
Reducing Current Account Deficit (a negative net sales
abroad)
•
Adoption of global best practices
•
Indian small shops employ workers without proper
contracts. Many unorganized small shops depend on
child labour. A well-regulated retail sector will reduce
such cases
26. IMPACT ON SMES
•
Small manufacturers will benefit from condition of 30
per cent procurement from Indian small industries in
single and multi-brand retail conditions
•
Enabling them to get integrated with global retail
chains like Walmart, Tesco etc.
•
Opportunities for new contracts would enhance their
capacity to export products from India and bring in
more dollars for India
27. CONT..
•
Even domestic corporate houses were not prohibited from
entering the retail sector.
e.g. Reliance Fresh, Mahindra Retail, Big Bazar etc.
•
The only difference in case of FDI is that ownership would
become different.
•
Rangarajan (Chairman economic Advisory Council) argues that :
Large retailers would be restricted to metropolitan towns
28. SMALL BUSINESSES
•
Not much worries for Small Retailer/ Kiraanas
•
Rule : All multi-brand and single brand stores must
confine their operations to 53-odd cities with a
population over one million, out of some 7935 towns
and cities in India.
•
It is expected that these stores will now have full access
to over 200 million urban consumers (20 crores)
29. ISSUES IMMERGED
ISSUE
1 : FDI will provide employment-A MYTH
A Wall Street journal article claims 40 lakh people will be directly
employed(refer : wiki). WalMart has 21 lakh employees worldwide. Their
largest store has 214 employees. At this rate they have to open 18,000
stores in India. For Tesco or Carrefour, it is lesser; so there are 36,000
stores that need to be opened in 53 cities - that is 600 stores per city.
ISSUE
2: Small retailers will get affected
ISSUE
3: Fear of monopoly
30. ISSUES IMMERGED
ISSUE
4: Loss in jobs of middleman(who have prevailed since
centuries and have never contributed in a positive way)
5: Middle man will be included due to bulk buying (reverse eg. of
mother dairy)
ISSUE
ISSUE
5: Emergence Of Foreign Middlemen
There are instances where there are no middlemen in India. For
example, in the sugar sector, the sugarcane farmers are contracted by
sugar mills to sell their produce directly to the mills.
When FDI comes in India, MBR will act as new middlemen. To say that
middlemen will no longer exist is totally wrong.
31. FUTURE PROSPECTUS
• Today retail is US$ 450 billion if growth is 8%, it
will become US$ 1.3 trillion market by 2020.
• Modern sector is 4% of US$ 20 billion if rate of
growth is 24 %, it will be US$ 200 billion market
and unorganized sector will go to US$ 1.1 trillion
32. TWO DIFFERENT EXAMPLES
China : employment increased from 28 million to
54 million, doubled in 10 years, corner shops
increased from 1.9 million to 2.5 million
Thailand : in Thailand 60% shut down in grocery
stores in 5 years
33. FDI RETAIL IN DELHI
•
On January 13, 2014 The Aam Aadmi Party (AAP) Government in Delhi has
written to the Department of Industrial Policy and Promotion (DIPP)
formally disapproving the setting up of Foreign Direct Investment-funded
multi-brand retail stores in the State.
•
On January 21, 2014 Commerce and Industry Minister Anand Sharma on
reacted bitterly to the letter written to the Department of Industrial Policy
and Promotion (DIPP), Sharma went ahead warning the state
government, ‘States have the option to join. But it is not a revolving door.
Policy has to have stability for investor confidence’.
•
It is interesting to watch Congress quarrel, yet the alliance does not fall
apart
34. CURRENT SCENARIO IN FDI RETAIL-1
•
Tesco is the first global retailer to apply for multi-brand retailing after the
government allowed 51 per cent FDI in the segment in September last
year.
•
On December 30, 2013 The Foreign Investment Promotion Board (FIPB)
approved UK-based Tesco Plc's proposal to enter the Indian multi-brand
retail segment in joint venture with Tata Group company with an initial
investment of USD 110 million (about Rs 680 crore).
•
Tesco will pick up a 50 per cent stake in Trent Hypermarket Ltd, a whollyowned subsidiary of Trent Ltd, a Tata group company.
•
This investment, believed to be for the first three years of business, is likely
to be increased later. For now, Tesco has plans to invest only in Karnataka
and Maharashtra.
35. CURRENT SCENARIO IN FDI RETAIL-2
•
The joint venture—Bharti Wal-Mart Pvt. Ltd.—was set up to operate
wholesale stores under the Best Price Modern Wholesale brand. It was
not catering directly to retail consumers in the country.
•
The American retail major Walmart and Bharti Enterprises decided to
part ways in October last year, bringing an end to their six-year long
partnership
•
In December 2013, Wal-Mart received the green signal from the
Competition Commission of India (CCI) to purchase Bharti group’s almost
50% stake in their Indian joint venture for wholesale stores business.
•
On January 15, 2014 the retailer has registered a new company called
Wal-Mart India Pvt. Ltd. in the country, according to the data available
with the ministry of corporate affairs.
36. ADVANTAGES OF FDI
RICH
OPPORTUNITY.
BENEFITS FOR
FARMERS.
IMPROVED TECHNOLOGY AND LOGISTICS.
IMPACT ON
REAL-ESTATE DEVLOPMENT.
37. DISADVANTAGES
Domestic
companies may lose their ownership to
overseas companies.
Small
enterprise may not compete with the foreign
players and may ultimately be edged out of business.
Large
giants of the world may monopolies the highly
profitable sector.
38. CONCLUSION
In the final analysis, for India, FDI in multi-brand retail should be
seriously considered by the government. Despite country wide
speculation on the plight of small retailers, India needs to take a lesson
from China where organized and unorganized retail seem to co-exist
and grow together.
In my view, the government has an opportunity to achieve certain of its
own targets: improve its infrastructure, technologies, generate
employment for those keen to work in this sector FDI would lead to a
more comprehensive integration of India into the worldwide market
and, as such, it is imperative for the government to promote this sector
for the overall economic development and social welfare of the
country. If done in the right manner, it can prove to be a boon and not a
curse.