FDI IN RETAIL -India

BY Gauri Nagark Roll No. RH 29

Defination

FDI can be defined as a cross border investment, where foreign assets are invested into the organizations of the domestic market excluding the investment in stock.

How can FDI come to India?

Franchise agreements Cash and carry wholesale trading Strategic licensing agreement Manufacturing and wholly earned subsidaries-nike-sierra (nike India pvt ltd)

What will FDI in retail bring to India?

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5. 6.

Employment Organised retail stores Availability of quality products at affordable prices Countrys P&S to enter global market Transfer o skills and technology. farmer community would stand to gain 10-30 percent higher remuneration-CII REPORTS

DISADVANTAGE OF FDI....
Will affect 50 million merchants in India Profit distribution, investment ratios are not fixed Retailer faces loss in business Market places are situated too far which increases traveling expenses Workers safety and policies are not mentioned clearly Inflation may be increased Again India become slaves because of FDI in retail sector.

Major Issues and Challenges to Larger FDI Inflows in India

Restrictive FDI Regime Lack of Clear Cut and Transparent Sectoral Policies for FDI High Tariff Rates by International Standards (eg duty free east asia) Lack of Decision-making Authority with the State Governments Limited Scale of Export Processing Zones Stringent Labour Laws

challenges
Skilled workers Competition Inflation Problems in raising fund Real estate problems- stamp duty, clustering of outlets. Market power. unorganised -95%

organised -5%

Absence of developed infrastructure

Shrinkage Lack of logistic infra Corruption Additional intermediaries- factors dominating chain Tech hurdle

TOP 10 FOREIGN STORES TAPPING INDIA

Walmart- US Carrefour france Tesco UK METRO AG- germany Auchan france Best buy- US IKEA- sweden GAP

H&M- sweden Target US

CONCLUSION
Prolong denial Coexist nature of organised and unorganised sector Better playing field Clear guidelines Sole solution- not only one solution!