FDI in Retail in India (Single & Multi Brand)
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The document discusses foreign direct investment (FDI) in the retail sector in India. It provides background on FDI trends globally and in different countries. FDI in retail was first allowed in India in 2006 in the cash and carry/wholesale sector, then in single brand retail in 2011 and multi-brand retail in select cities in 2012. The retail sector is an important part of the Indian economy, contributing 14-15% to GDP. Supporters argue FDI will boost investment, technology, tax revenue and consumer choice, while critics argue it could displace small retailers and sellers and cost jobs.
FDI in Retail in India (Single & Multi Brand)
- 1. FDI IN RETAIL Group Members Altamash Shaikh - 64 Kamaluddin Shaikh - 68 Ismil Shaikh - 67 Rahul Shukla - 81 Virat Tiwari - 91 Devansh Parmar - 93
- 3. DEFINITION OF FDI What is FDI ??
- 4. WHAT IS FDI IN RETAIL??
- 5. IMPORTANCE OF FDI IN DEVELOPING COUNTRIES Total stock of world FDI increased from 8% - 26%. Global stock of inward FDI increased 22% - 32%. Global stock of outward FDI increased 10% - 17%. China largest gainer of FDI.
- 6. FDI IN DIFFERENT COUNTRIES Germany & Europe. South Africa. UAE (United Arab Emirates).
- 8. Corporates are increasingly coming into this sector. Demand of branded goods on a large scale. Demand of new and varied products. High quality product is preferred . Varied window display. E-tailers increase the presence.
- 9. World's largest industries exceeding US$ 9 trillion. Dominated by developed countries. 47 global fortune companies & 25 of Asia's top 200 companies are retailers. US, EU & Japan constitute 80% of world retail sales. Retail tradein Europe employs 15% of theEuropean workforce(3 million firms and 13 million workers).
- 10. RETAIL SECTOR IN INDIA India 5th Largest retail market Globally. Contributes 14-15% in total GDP. Fastest growing retail market in world. Classified as: 1.Organised Retail Sector. 2.Unorganized Retail Sector.
- 11. FDI IN INDIA 1991 - Trade in wholesale & retail. 1997 - Cash & carry wholesale 100% only after Govt. approval. 2006 - Cash & carry under automatic route. - 51% FDI in Single Brand. 2011 - 100% FDI in Single Brand. 2012 - 51% FDI in Multi Brand with Limitations. - 49% FDI in Aviation. - 74% FDI in Broadcasting.
- 12. o Incentives attract FDI. o Market size and potential are sufficient inducers. o Tax breaks, import duty exemptions, land and power subsidies, and other enticements.
- 13. FDI POLICY- OVER THE YEARS.
- 14. EFFECT ON ECONOMY Help in Economic growth of country. Contribute in growth of Total GDP. Retail sector presently contributing 15% to Total GDP. Assumed to contribute even more in coming years.
- 15. COMPARISON OF FDI INFLOW.
- 16. India China Focus on Services Focus on Industry High labor cost Low Labor Cost Home grown Capital FDI Old technology Adaptability to Latest technology Democratic Government Communist Government
- 18. ADVANTAGES Generates huge employment Increased investment in technology The huge tax revenue generated. The consumer gains from the wide variety of choices and a more diversified basket.
- 19. DISADVANTAGES Foreign Players would displace the unorganized retailers because of their superior financial strengths. The entry of large global retailers such as Wal-Mart would kill local shops and millions of jobs. Increase in real estate prices and marginalize domestic entrepreneurs
Editor's Notes
- #9: Varied window displat : now a days retailers know that if your product is dosplayed properly acc. to the culture of the state you are operating in , will definaltey help you