Post on 29-Jan-2015
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FDI IN RETAILFDI IN RETAIL
Group Members• Altamash Shaikh - 64• Kamaluddin Shaikh - 68• Ismil Shaikh - 67• Rahul Shukla - 81• Virat Tiwari - 91• Devansh Parmar - 93
DEFINITION OF FDIDEFINITION OF FDI
What is FDI ??
WHAT IS FDI IN WHAT IS FDI IN RETAIL??RETAIL??
IMPORTANCE OF FDI IN IMPORTANCE OF FDI IN DEVELOPING COUNTRIESDEVELOPING 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.
FDI IN DIFFERENT FDI IN DIFFERENT COUNTRIESCOUNTRIES
Germany & Europe. South Africa. UAE (United Arab Emirates).
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.
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).
RETAIL SECTOR IN RETAIL SECTOR IN INDIAINDIA
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.
FDI IN INDIAFDI 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.
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.
FDI POLICY- OVER THE YEARS.FDI POLICY- OVER THE YEARS.
EFFECT ON EFFECT ON ECONOMYECONOMY
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.
COMPARISON OF FDI COMPARISON OF FDI INFLOW.INFLOW.
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
ADVANTAGESADVANTAGES 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.
DISADVANTAGESDISADVANTAGES 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