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FDI IN Indian Retail Sector Name: Mohammed Gaus Course Name and Number: EBM640 Date: 16 th -Nov-2013 Instructor’s Name. K.R Kaushik MAII Stratford University
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Page 1: Fdi in indian retail sector0......docx

FDI IN Indian Retail Sector

Name: Mohammed Gaus

Course Name and Number: EBM640

Date: 16th-Nov-2013

Instructor’s Name. K.R Kaushik

MAII Stratford University

Page 2: Fdi in indian retail sector0......docx

Objective

Foreign direct

investment (FDI)

Retail Sector

SINGLE AND MULTI

BRAND RETAIL

PRESENT SHAPE OF

FDI

Advantages Disadvantag

es

Conclusions &

Suggestions

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Foreign direct investment (FDI)

A source of capital and investment involving foreign

control of production A source of exploitation of

Recourse A channel of technology transfer and industrial

development

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Retail Sector

According to Philip Kotler “retailing includes all the

activities involved is selling goods or

Service directly to final consumers for

personal.

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SINGLE AND MULTI BRAND RETAIL

SINGLE BRAND RETAIL : • It implies that a retail store with foreign investment can only sell

one brand.• Eg: Nokia , Reebok and Adidas Only

MULTI BRAND RETAIL : • Retail store can sell multiple brands under one roof.• Global retailers like Wal– Mart & Tesco can open stores offering a

wide range of household items and grocery directly to consumers in the same way as the “ Kirana” stores.

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PRESENT SHAPE OF FDI Retail industry – Second largest employer ( with an estimated 35 million

people engaged by the industry).

New policy will allow multi brand foreign retailers to set up shop only in cities with a population of more than 10 lakhs as per the 2011 census.

( there are 53 such cities)

Foreign retailers will be required to put up 50% of total FDI in infrastructure .

Investor will need to source atleast 30% of manufactured or processed products from small retailers

According to the newspaper MINT– US has said that FDI in retail trade would be beneficial to both India and U.S.

In Jan 2012 SINGLE BRAND FDI hiked to 100 % from 51%.

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Advantages

INDIAN FARMERS • Farmers will be the biggest beneficiary of FDI in retail

who will be able to improve their productivity.

PARTERNSHIP OPPORTUNITY • Indian Retailers have reason to be happy as it

involves a lot of learning that could take them to higher profitability.

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Disadvantages

The new system will displace the traditional shops and petty retail shops in markets and mohallahs.

There will be greatest possibility for

competition for the small shop keepers in

town or villages

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Conclusion and Suggestions.Higher Incomes

Favorable Demographies

Changing Lifestyles and Preferences

Real estate boom

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Thanks


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