2. 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.
3. 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.
4. • 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%.
5. FORMS OF FDI IN INDIAN RETAILING
• JOINT VENTURES
• FRANCHISING
• SOURCING OF SUPPLIES FROM SMALL SCALE
SECTOR
• CASH AND CARRY OPERATIONS
• NON-STORE FORMATS
6. 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 .
7. 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.
13. 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.
14. • 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.
