FDI IN RETAIL PRESENTED

BY
NEELAM RASTE NILESH GHADGE SACHIN METHREE VICKY MHATRE

OBJECTIVES
Meaning of Foreign Direct Investment (FDI) Meaning of FDI in Retail Sector Advantages Foreign Direct Investment (FDI Current News of FDI in Indian Retail Sector Obstacles & Its Remedies Conclusion

Foreign Direct Investment

FDI stands for Foreign Direct Investment. The simplest explanation of FDI would be direct investment by corporation in a commercial venture in another country. liberalized act

FDI in Retail Sector

Definition of Retail Division of Retail Industry Organised and Unorganised Retailing FDI Policy in India Importance of 51 % Multi brand retailing TESCO, Carrefour, and WalMart.

Entry Options For Foreign Players prior to FDI Policy Franchise Agreements Cash And Carry Wholesale Trading Strategic Licensing Agreements Manufacturing and Wholly Owned Subsidiaries.

Advantages Foreign Direct Investment (FDI)

Integration into global economy Technology advancement Increased competition Improved human resources

Other positive aspects

Elimination of Middle Men . Quality standards and cost-competitiveness . Wider global market . Economic development . More investments in the end to end supply chain . Low spillage and wastage . More options for the consumer.

FDI Success story China

Reasons for not allowing FDI in retailing in India

Affects unorganized players (kirana shops) Kind of employment Lowering of prices

Negative Impact of FDI in retail sector in India

Bringing back East India Company Small shop with little capital exploitation farmers. No effective in control over inflation & price rise Foreign retailers to sell their products at higher price

Step to Encounter Negative Impact

The government should realize that its prime responsibility is to create more jobs for unemployed people. Invest in training of small retailers and traders to guide Strengthening of Public Distribution System

FDI WILL BE AN ADVANTAGE AND NOT A DISADVANTAGE

FDI will not affect unorganized players Lowering of prices not a disadvantage

Limitation
Infrastructure Intermediaries dominate the value chain Improper Public Distribution System (PDS) No Global Reach Rationale behind Allowing FDI in Retail Sector

Conclusion
Even though there are both positive and negative aspects to FDI in retail. If we try to weigh the number of positive aspects outruns the negative ones. Also in the longer run it will prove to be very useful to the Indian economy. It will also provide solution to the present scenario of recession and unemployment.