fdi in retail sector

FDI IN RETAIL SECTOR

WHAT IS FDI ?FOREIGN DIRECT INVESTMENT (FDI) is direct investment by a company in production located in another country either by buying a company in the country or by expanding operations of an existing business in the country.

FDI IN INDIA

•India is the second most important fdi destination (after CHINA) for transnational corporations during 2010 – 2012.• sectors which attracted higher inflows where services , telecommunications,construction activities and computer software and hardware.• Mauritius,Singapore,the US and the UK were among the leading sources of FDI.

• FDI in india in 2010 was $44.8 billion and in 2011 ,it increases by 25 % to $ 50.8 billion and now it increases by $ 1.93 billion by the year 2012

• Recently,Government of India allowed FDI ;in aviation upto 49%,in broadcast sector upto 74%,in multi-brand retail upto 51% and single-brand retail upto 100%.

FORMS OF FDI IN INDIAN RETAILING

• JOINT VENTURES• FRANCHISING• SOURCING OF SUPPLIES FROM SMALL SCALE

SECTOR• CASH AND CARRY OPERATIONS• NON-STORE FORMATS

POSITIVE FEATURES OF FDI

• Job opportunities in areas like marketing ,agro-processing,packaging,transportation etc will be created.

• Farmers will get a good price for their crops and their exploitation will stop.

• Infrastructure facilities,refrigeration technology ,transportation etc will be renovated.

• Foreign companies will also create a supply chain in the Indian market .

NEGATIVE FEATURES OF FDI

• Small retailers and other small ‘kirana store owners ‘will suffer a large loss.

• Giant retailers will displace small retailers • Foreign giants will purchase their goods from

the international market and not from domestic sources.

• Affect will be on consumers , retailers , wholesalers.

RECENTLY PROTEST AGAINST FDI IN INDIA

CONCLUSION

• At the first sight we can see that benefits are more in numbers ,but i think determinents are more serious.

• In India we have 11 shops per 1000 people,India has 1.2 crore shops ,which gives employment to about 4 crore people, where they will be go if the FDI will increase in retail sectors.

• But Govt of india is saying that FDI in the retail sector is likely to create as many as 10 million jobs in a span of 10 years,making it the largest sector in organised employment.