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The commitment

of money or capital to

purchase financialinstruments or assets in

order to gain profitable

returns.

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Investment done bycitizens and government ofone country (homecountry) invest inindustries of anothercountry (host country).

ForeignInvestmentthrough

ForeignDirectInvestments

ForeignInstitutionalInvestors

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2000-06 FDI allowed up to 100% in

specified sectors.

FDI limits increased.

Procedures further simplified

The top 3 Indian Regions attracting the

highest FDI.

Mumbai, Delhi and Karnataka.

Account for nearly 62% of the

total FDI.

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Mergers andAcquisitions

Horizontal FDI

Vertical FDI.*Backward

Vertical FDI*Forward

Vertical FDI

By

Target

Resource-Seeking

Market-Seeking

Efficiency-Seeking

Strategic-Asset-Seeking

By

Motive

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Incentives attract FDI.

Market size and potential are sufficient

inducers.

Tax breaks, import duty exemptions,

land and power subsidies, and other

enticements.

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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%)

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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.

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RetailSegment

Percentageholding insector

Majorretailers

Food and grocery 63% Reliance fresh, Caf

brio, food bazaar

Clothing, textileand fashion

9% Westside, shoppersstop, globus

jewellery 5% Tanishq

Catering services 5% IRCTC

Consumer durable 4% Viveks, vijay sales,Croma

pharmaceuticals 4% Piramal group

Entertainment 3% Bowling co.,

Furnishing, utensils 3% Hometown,Tangent Concept

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Employment generation.

Second-largest employer

after agriculture.

Retail trade employing

35.06 million.

Wholesale trade

generating an additional

employment of 5.48 million.

Additional 1.6

mnjobs .

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Technology Better use of

resources and goods.

Wastage and Storage

problems will be resolved.

Efficient logistics,

production, and distribution

channels.

Digital records.

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A strong competition from mom and pop

shops:-

Easily accessible & approachable.

Provide services like Free home delivery

and goods on credit.

They change consumer focus.

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Restrict the number of stores that can beoperated in a city.

Allow access to the small retailers to thestores through special windows.

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Thank You