This document discusses FDI (foreign direct investment) in retail trade in India. It notes that retail trade is the world's oldest business and India's retail shops are generally small and family-owned. It states that currently India allows 51% FDI in single-brand retail and 100% FDI in cash-and-carry wholesale trade, but no FDI in multi-brand retail stores. The document also lists potential benefits and drawbacks of allowing FDI in retail trade.
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1. PRESENTED BY
Mr. TUSHAR R. VAIDYA
tusharvaidya143@gmail.com
MBA II
3. THINGS TO REMEMBER -
Before we go ahead, we should keep certain basic facts in our mind.
We are a country with huge population out of which majority are unprivileged and
Below Poverty line.
We are people with tradition, culture and ethics.
In our country it is very difficult to get alternate employment.
Our survival is because of our collective strength.
The Govt. policies have been Anti Growth oriented for TRADERS.
The Traders Voice is not heard by decision makers.
In fact Traders have no representation in Govt.
4. LICENCES & PERMITS
INDUSTRIAL DISPUTE ACT
SHOP & ESTABLISHMENT ACT
COSUMER PROTECTION ACT
WEIGHT & MEASUREMENT ACT
PACKAGING ACT
PREVENTION OF FOOD ADULTRATION ACT
PREVENTION OF BLOCK MARKETING ACT
ANTI HOARDING & PROFEELING ACT
MONEY LENDING ACT
PRODEND FUND ACT
MINIMUM WAGES ACT
ESI ACT
GRATUITY ACT
BONUS ACT
INEFFICIENT
LABOURS
PRESENT CONDITION OF TRADERS
ANTI SOCAL ELEMENTS
POLITICIAL INTERFERANCE
Fringe Benefit Tax
WATER TAX
SERVICE TAX
CENTRAL
EXCISE
POWER PROBLEM
HIGH BANK
CHARGES
OCTROI
WELTH TAX
PROFESSIONAL TAX
INCOME TAX
ENTRY TAX
PURCHASE TAX
POOR MARKET
CONDITION
STAMP DUTY
ESSENTIAL COMMODITIES ACT
FDI in Retail Trade
Cash Transaction Tax
&
Quarterly C Form
5. RETAIL TRADE :
BACKBONE OF ECONOMY
Retail trade is worlds oldest business.
Retail trade consists of sale of goods & services to consumers for their personal,
family or household use.
Based on turnover and volume, retail trade is worlds biggest economic activity.
In the year 2000, world turnover in retail trade is estimated around Rs. 3,10,20,000
corers.
In India by investing nominal Capital a person can start retail business.
In India Retail shops are generally owned and run by family. The whole family gets
self employed.
6. WHAT IS EXACT FDI IN RETAIL ?
51 % FDI allowed in single-brand formats
100 % FDI in cash-and-carry format
NO FDI in multi-brand stores ( like Wal-Mart)
Trends indicate that the FDI would open up in retail sector,
However political consensus has to be reached before that happens
9. BENEFITS
Benefits of FDI in Retail
Inflow of investment and funds.
Improvement in the quality of employment.
Increased local sourcing.
Provide better value to end consumers.
Investments and improvement in the supply chains
and warehousing.
Franchising opportunities for local entrepreneurs.
Growth of infrastructure.
Cost reduction.
Implementation of IT in retail.
10. DRAW BACKS
Drawbacks of FDI in Retail
Would give rise to cut-throat competition rather than
promoting incremental business.
Promoting Cartels and Creating Monopoly.
Increase in the Real Estate Prices.
Marginalize domestic entrepreneurs.
The financial strength of foreign players would
displace the unorganized players.
Absence of proper regulatory guidelines would induce
unfair trade practices like Predatory