FDI In Retail In India

Presented by...

Nand Nandan Jha

What is FDI?
Foreign direct investment (FDI) is the movement of capital across national frontiers in a manner that grants the investor control over the acquired asset.

FDI Share of organized sector in selected countries

Country U. S. A. U. K. Share of organized Sector (%) 85 80

Japan
Russia India

66
36 04

Multi-Brand Retail FDI Policy in other countries

FDI Limit 100% 100% 100% Country China Thailand Russia

100%

Indonesia

Advantages of FDI
Increase economic growth by dealing with different international products 1 million (1 Crore) employment will create in three years - UPA Government Billion dollars will be invested in Indian market Spread import and export business in different countries Agriculture related people will get good price of their goods

Disadvantages of FDI
Will affect 50 million merchants in India Profit distribution, investment ratios are not fixed An economically backward class person suffers from price raise Retailer faces loss in business Market places are situated too far which increases travelling expenses Workers safety and policies are not mentioned clearly Inflation may be increased Again India become slaves because of FDI in retail sector

SWOT Analysis of FDI

Strengths of FDI Policy 1. Fast growing economy. 2. Young and dynamic manpower. 3. Highest shop density in the world. 4. High growth rate in retail & wholesale trade. 5. Presence of big industry houses which can absorb losses.

SWOT Analysis of FDI

Weaknesses of FDI Policy 1. Low capital investment in retail sector. 2. Lack of trained & educated force. 3. Lack of competition. 4. More prices as compared to specialized shops.

SWOT Analysis of FDI

Opportunities of FDI Policy 1. Major employment generation in the future. 2. It will enhance the financial condition of farmers. 3. Increase in lifecycle changes and status consciousness. 4. Improve the competition. 5. Foreign capital inflows. 6. Big market along with better technology and branding with latest managerial skills. 7. Quality improvement with cost reduction. 8. Increasing the export capacity.

SWOT Analysis of FDI

Threats of FDI Policy. 1. Threat to the survival of small retailers like pan tapri, local kirana. 2. Jobs in the manufacturing sector will be lost. 3. Started roadside bargains. 4. Work will be done by Indians and profits will go to foreigners.

Conclusion
Consumers are always hungry for modern ways of shopping. Indian retail sector is growing fast and its employment potential is growing fast. The retail scene is changing really fast. Retailers are rethinking their approaches towards the suppliers so that they can get the best pricing strategies for them.

Thank You