Академический Документы
Профессиональный Документы
Культура Документы
FDI is generally defined as A form of long term international capital movement, made for the purpose of productive activity and accompanied by the intention of managerial control or participation in the management of foreign firm.
POLICY ON FDI
India has among the most liberal and transparent policies on FDI among the emerging economies. FDI up to100% is allowed under the automatic route in all the sectors except the following, which require prior approval of Government: Sectors prohibited for FDI. Activities that require industrial license. Proposals in which the foreign collaborator has an existing financial/technical collaboration in India in the same field. Proposals for acquisition of shares in an existing Indian Company in financial service sector and where SEBI regulations, 1997 is attracted. All proposals falling outside notified sectoral policy in which FDI is not permitted.
Information Technology
Retail Traders
Banking Insurance
Pharma
Mining Steel
Professional
Education
In the year 2000, world turnover in retail trade is estimated around Rs. 3,10,20,000 crores.
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.
1.
2.
3.
Incentives attract FDI. Market size and potential are sufficient inducers.
GRDI Position : 3rd Size : $ 400 billion Growth Rate : 13% GDP contribution : 12% Major sector : Food and Grocery Employment : 2nd largest industry (35.06 million) Types: Organized ( 5%) Unorganized ( 95%)
One of the 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 trade in Europe employs 15% of the European workforce (3 million firms and 13 million workers). The worlds population is poised to expand 50% by 2050.
14% 8% 20%
China USA
Employment generation.
Second-largest employer after agriculture.
FDI in Retail sector will resolve problems regarding foreign exchange in India.
The life-long basic needs will keep on driving the Retail Industry.
These companies buy material from International market. Hence local producers are put to loss
These companies buy in bulk quantities directly manufacturers. The intermediaries loose business. from
After conquering the markets of Europe and America, these companies have now entered Asian markets.
After establishing their footings in Thailand, Indonesia, China, Japan, Philippines, etc in Asia, these companies are now targeting India.
Indonesia and Malaysia have established zones within which these foreigners can do trade. In Japan Big companies have to discuss with small traders. There is Zoning system also. Hence these companies have to establish their shops outside city limits. There is wide discontent amongst shopkeepers & people in the countries to which these store belong. The city counselor of California & Chicago have refused to allow opening of new shops to WALMART. These shops are required to take permission in countries like France, Germany and America.
Minimum amount to be brought in, as FDI, by the foreign investor, would be US $ 100 million. Retail sales locations are allowed in only those cities of India whose population is at least one million. At least 30% of their goods and products will be procured from the Indian local companies and industries At least 50% of the total investment will be made on the Back-end Infrastructure Government will have the first right to procurement of agricultural products
CONCLUSION
The increased flow of FDI in a country has given a major boost to the countries economy. FDI has provided better access to technologies for local economy. FDI will be a powerful driver to curb inflation. Opportunity to urban and rural unemployed Hence measure must be taken in order to ensure that the flow of FDI in our country continues to grow.