The commitment of money or capital to purchase financial instruments or assets in

order to gain profitable

returns.

Investment done by citizens and government of one country (home country) invest in industries of another country (host country).

Foreign Investm ent through

Foreign Direct Investm ents

Foreign Institutio nal Investors

 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.

By Target

Mergers and Acquisitions Horizontal FDI Vertical FDI. *Backward Vertical FDI *Forward Vertical FDI

By Motive

Resource-Seeking Market-Seeking Efficiency-Seeking Strategic-AssetSeeking

Incentives attract FDI. Market size and potential are sufficient inducers.

Tax breaks, import duty exemptions,

land and power subsidies, and other enticements.

FDI inflows from 2000-10 crossed $300 billion

FDI inflows from August 1991 to April2010 were $134.6 billion.

GRDI Position : 3rd

Size : $ 400 billion Growth Rate : 13% GDP contribution : 12% Major sector : Food and Grocery Employment : 2nd largest industry million) Types: Organized ( 5%) Unorganized ( 95%) (35.06

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.

Retail Segment
Food and grocery

Percentage Major holding in retailers sector

63% Reliance fresh, Caf brio, food bazaar Westside, shoppers stop, globus Tanishq IRCTC Viveks, vijay sales, Croma Piramal group Bowling co., Hometown, Tangent Concept

Clothing, textile and fashion jewellery Catering services Consumer durable

9%

5% 5% 4%

pharmaceuticals Entertainment

4% 3%

Furnishing, utensils 3%

Employment generation.
Second-largest employer after agriculture. Retail trade employing

35.06 million.
Wholesale trade generating an additional employment of 5.48 million.

Additio nal 1.6 mn jobs .

Technology Better use of resources and goods.

Wastage and Storage

problems will be resolved. Efficient logistics, production, and distribution channels. Digital records.

 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.

Restrict the number of stores that can be operated in a city.

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

Thank You