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FOREIGN DIRECT INVESTMENT IN RETAIL

ByRadhey rathiPrakash rathi

F - Foreign D – DirectI - Investment

The Foreign Direct Investment means “cross border investment made by a resident in one economy in an enterprise in another economy, with the objective of establishing a lasting interest in the investee economy.

What is Retail?• Retail involves the sale

of goods from a single point (markets, malls, department store) directly to the consumer in small quantities for his end use.

FDI POLICY51% foreign investment in multi-brand retail

100% foreign investment in single-brand retail

Limits for FDI in different Sectors26% 49% 51% 74% 100%

Newspaper & Media

Banking Multi Brand Retail

Atomic Minerals

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Defense Cable Network Petro Pipelines Science Journals

Airport

Pension Sector DTH Petro Marketing

Cold Storage

Courier Infrastructure Coal & Lignite Mines

Postal services

Tea Plantation Telecom Credit Info Co Telecom

Petroleum Refining

Wholesale trade

Power Exchange Township

Stock Exchange Others

CREATION OF EMPLOYMENT

EXPLOITATION OF FARMERS

REDUCED

SUPPLY CHAIN & COLD

STORAGE

REDUCTION OF WASTAGE

STRENGTHENI---NG OF RUPEE

DISADVANTAGES

Disadvantage

Advantage

FDI Equity Inflow In Calendar Year in 2014

FDI Equity Inflow( in US Million $) of Different Countries

Why World is looking towards India for Foreign Direct Investments :

India is the 3rd largest economy of the world in terms of purchasing power parity and thus looks attractive to the world for FDI. Some of the major economic sectors where India can attract investment are as follows:-

•Telecommunications

•Apparels

•Information Technology

•Pharmacy

•Auto parts

•Jewellery

•Chemicals

In last few years, certainly FDI have shown upward trends but the strict FDI policies have put hurdles in the growth in this sector. India is however set to become one of the major recipients of FDI in the Asia-Pacific region because of the economic reforms and the deregulation of this important sector. India has technical expertise and skilled managers and a growing middle class market of more than 300 million and this represents an attractive market.

win-win for all

FDI SHOULD COME IN

INDIA *

* TERMS AND CONDITIONS APPLIED