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Submitted BY:-

ALOK RANJAN

BEENOO SINGH

PRASHANT VERMA

HARSH VERMA

ROHIT VERMA

Department Of Business Administration

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Introduction

India is in the midst of a retail boom. The sector witnessed significant transformation in the past decade from

small-unorganized family-owned retail formats to organized retailing. Indian business houses and

manufacturers are setting up retail formats while real estate companies and venture capitalist are investing in

retail infrastructure. Many international brands have entered the market. With the growth in organized retailing,unorganized retailers are fast changing their business models. However, retailing is one of the few sectors where

foreign direct investment (FDI) is not allowed at present.

FDI in retail industry

FDI in retail industry means that foreign companies in certain categories can sell products through their own

retail shop in the country. At present, foreign direct investment (FDI) in pure retailing is not permitted under

Indian law. Government of India has allowed FDI in retail of specific brand of products. Following this, foreign

companies in certain categories can sell products through their own retail shops in the country. It is a very

positive step and it will encourage international brands to set up shop in India. On the other hand, this will also

lead to competition among Indian players. it will be the consumers who stand to gain,'' This would not change

the market dynamics immediately as it will take some time for these plans to fructify. The growing dominance

of multinational companies in the country's $200 billion retail business, had warned that any move to increase

FDI in the retail sector would ruin the business of small and medium traders scattered over the country

Organized retailers in India are opposing the entry of MNCs in retail trading because of their predatory pricing

strategy that wipes out competition, when the Government decides to allow foreign players to enter the retail

space, it should first restrict them to lifestyle products segment before permitting them to spread their wings

into other areas like grocery marketing that has a direct impact on `Kirana stores'. FDI in retail trade has forcedthe wholesalers and food processors to improve, raised exports, and triggered growth by outsourcing supplies

domestically. The availability of standardized products has also boosted tourism in these countries. FDI in retail

sector has been a key driver of productivity growth in Brazil, Poland and Thailand. This has resulted in lower

prices to the consumer, more consumption and higher profit for the producer.

FMCG Retail in India

India is one of the largest emerging markets, with a population of over one billion. India is one of the largesteconomies in the world in terms of purchasing power and has a strong middle class base of 300 million.Around70 per cent of the total households in India reside in the rural areas, where mostly traditional retail outletscommonly called Kirana stores exist. These are unorganized, operated by single person and runs on the basis ofconsumer familiarity with the owner. However, recently organized retailing has become more popular in bigcities in India and most of the metropolitan cities and other big cities are flooded by modern organized retailstores. Many semi-urban areas also witnesses entry of such organized retailoutlets. Till now, entry offoreignretailers was restricted in Indian retail market because of the ban on Foreign Direct Investment in Indian Retail

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Sector. But recently, as government has changed its policy and the cabinet has allowed 51 per cent FDI insingle-brand retail, the prospects of foreign players entering India became high. India is called a nation of shopkeepers and organized retail which has just made an entry has a very small share estimated between 2-4% oftotal retail in the country. The entry of major retailers in the country has raised passions among the politicians,policy makers and smaller retailers that the presence of bigger organized retailers would lead to the eliminationof the smaller shop keepers leading to a large scale problem of unemployment and maybe even social problems.

Consumer of Retail

"Every man is a consumer, and ought to be a producer ... He is by constitution expensive, and needs to be

rich" [Ralph Waldo EmersonWealth]

Consumer means who consume any product and service in a certain time so any one can be become a consumer

If we talk about young professional consumer then it means any consumers who are professionals and young

.They have many buying behavior and they respond according to their behavior.

Objectives of Study

The main objective was to know the perception about FDI in retail from young professional people who is

going to contribute in growth of INDIA. From this study we are trying to find what they think about Indian

future market and how the perceive to the FDI.

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DATA ANALYSIS and

findings

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Respondent gender

After completion of data analysis I found that 19% female respondent and 81 % male respondent was

responded.

Respondent occupation

In total 47 respondents there was 26 respondents was student, which is approximately 55% of total respondent

That means youth are taking more interest on FDI because in present era they are facing a lot of unemployment

and FDI will increase employment in India.

male

81%

female

19%

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INCOME LEVEL

Out of total 47 respondent approx. 49% respondent have there income level bellow Rs.10000/month. Means

people who have less income they are worried about FDI.

Awareness about FDI in retail sector

According to above graph we are getting that out of total respondents 81% was aware about FDI in retail in

India and 19 % was unaware about FDI.

yes

81%

No

19%

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Benefit from FDI

Out of total respondent 38% respondents believe that there will be no benefit from FDI and 62% believe that

there are some benefits from FDI in ratail.

How FDI beneficial for consumer

Approx 56% people thought that after allowing FDI in retail it will increase the quality of the product due to

entrance of foreign company with new technology in India.

YES

62%

NO

38%

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Preference when go shopping

Out of total respondent approximately 13% people prefer to purchase goods from foreign company, 28 %

people like to purchase from Indian company and 59% people like to purchase from both foreign and Indian

company.

Reason for shopping from foreign company

People who are purchasing goods from foreign company they believe that they provide us better quality productthan Indian companies. There are some more reason behind purchasing goods from foreign company are like

cheaper product and they are providing additional services also.

28%

13%59%

Indian company

foreign company

Both company

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Effect on local store/market

Out of total respondent only 9% believe that there will be some effect on local store or market of FDI in Retail.

And majority of people believe that FDI will not have any effect on local stores or markets.

Preference of retail organization during shopping

There are only 8% people prefer to purchase product from retail organization and they give reason behind it that

we can save a lot of time through purchasing from retail organization but majority of people are not preferring

retail organization.

91%

9%

Yes

No

92%

8%

Yes

No

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Frequency of retail shopping

According to data there are 30% majority of the people goes retail shop during special events and once inweekly and 11% says that once in quarterly.

Impact on former

According to my study we can see that 37% young professional say that it will be directlybenefited any way in his life / future life. And 39 % say that it will not be benefited any way

and 24 say we cannot say till it implemented in India.

37%

24%

39%

Will benefit Will n ot benefit can not say

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Impact on other industries from FDI

According to the study we find that 36% respondent say that FDI impact to the former directly and they will be

benefited by the FDI in retail. And 30% respondent say that it will not be benefited any way .Where 34 % say

cant say till it implemented in India so they have no idea about where they will benefited or not.

The above findings collected through the sample of the young professional people of society shows thatmajority of people are supporting the FDI in retail. There are some who for their own advantage are opposingthe entry of foreign retailers into India. They are trying to mislead the people of India for their own profits.

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CONCLUSION

The future of foreign retail players is also uncertain like that of Indian retail players. The government which

acts better than the one which does not. Apprehensions were raised on many such occasions in the past on

virtually every measures of liberalization of Indian economy but most of the apprehensions proved wrong whilemany others come true. It is better to act and watch than not to act at all.