FOREIGN DIRECT INVESTMENT IN RETAIL MARKET IN INDIA

PRESENTED BY DEBAMALYA BHATTACHARYA M.COM. (3RD SEMESTER) ROLL No.-22 TRIPURA UNIVERSITY

Definition OF FDI
FDI can be defined as a cross border investment, where foreign assets are invested into the organizations of the domestic market excluding the investment in stock. It brings private funds from overseas into products or services. The domestic company in which foreign currency is invested is usually being controlled by the investing foreign company

Definition of Retail
In 2004, The High Court of Delhi defined the term retail as a sale for final consumption in contrast to a sale for further sale or processing (i.e. wholesale). A sale to the ultimate consumer.

Division of Retail Industry

The retail industry is mainly divided into:1) Organised and 2) Unorganised Retailing Organised retailing refers to trading activities undertaken by licensed retailers, that is, those who are registered for sales tax, income tax, etc. Unorganised retailing, on the other hand, refers to the traditional formats of lowcost retailing, for example, the local kirana shops, owner manned general stores, paan/beedi shops, convenience stores, hand cart and pavement vendors, etc.

Advantages of FDI in Retail

1. More investments in the end to end supply chain - For the Foreign Multi Brand retailers, entering India would introduce a lot of innovations until now not introduced. For one, they would invest heavily into end-to-end supply chains including world class cold storage facilities. 2. Low spillage and wastage - In India the supply chain is considered highly inneffient due to the huge wastage during the transportation. The global world class retailers would introduce quality standards that are second to none and would lead to more farm produce reaching the end consumer in a consumable condition. This would improve productivity of the entire system. 3. More options for the consumer - Consumer will get variety of products at low prices compared to market rates, and will have more choice to get international brands at one place. 4. Job opportunities- Estimates shows that this will create about 80Lakh jobs. These career opportunities will be created mostly in retail, real estate 5. Benefits to Farmers & Agriculture- related people will get good price of their goods. It will help our farmers and there will be direct contact between farmers and shops, so they will get good benefit and their standard of living will increase, infrastructure and growth of our country will increase.

CONCLUSION

FDI can prove to be beneficial to both the parties, and the economies of both the party's countries as well.

THANK YOU