The document discusses foreign direct investment (FDI) in the retail sector in India. It provides background on FDI trends globally and in different countries. FDI in retail was first allowed in India in 2006 in the cash and carry/wholesale sector, then in single brand retail in 2011 and multi-brand retail in select cities in 2012. The retail sector is an important part of the Indian economy, contributing 14-15% to GDP. Supporters argue FDI will boost investment, technology, tax revenue and consumer choice, while critics argue it could displace small retailers and sellers and cost jobs.

1. FDI IN RETAIL
Group Members
• Altamash Shaikh - 64
• Kamaluddin Shaikh - 68
• Ismil Shaikh - 67
• Rahul Shukla - 81
• Virat Tiwari - 91
• Devansh Parmar - 93

3. DEFINITION OF
FDI
What is FDI ??

4. WHAT IS FDI IN
RETAIL??

5. IMPORTANCE OF FDI IN
DEVELOPING
COUNTRIES
 Total stock of world FDI increased from 8% -
26%.
 Global stock of inward FDI increased 22% - 32%.
 Global stock of outward FDI increased 10% -
17%.
 China largest gainer of FDI.

6. FDI IN DIFFERENT
COUNTRIES
 Germany & Europe.
 South Africa.
 UAE (United Arab Emirates).

8.  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.

9.  World's largest industries exceeding US$ 9 trillion.
 Dominated by developed countries.
 47 global fortune companies & 25 of Asia's top 200
companies are retailers.
 US, EU & Japan constitute 80% of world retail sales.
 Retail trade in Europe employs 15% of the European
workforce (3 million firms and 13 million workers).

10. RETAIL SECTOR IN
INDIA
 India 5th Largest retail market Globally.
 Contributes 14-15% in total GDP.
 Fastest growing retail market in world.
 Classified as:
1.Organised Retail Sector.
2.Unorganized Retail Sector.

11. FDI IN INDIA
 1991 - Trade in wholesale & retail.
 1997 - Cash & carry wholesale 100% only after
Govt. approval.
 2006 - Cash & carry under automatic route.
- 51% FDI in Single Brand.
 2011 - 100% FDI in Single Brand.
 2012 - 51% FDI in Multi Brand with Limitations.
- 49% FDI in Aviation.
- 74% FDI in Broadcasting.

12. o Incentives attract FDI.
o Market size and potential are sufficient inducers.
o Tax breaks, import duty exemptions, land and
power subsidies, and other enticements.

13. FDI POLICY- OVER THE
YEARS.

14. EFFECT ON
ECONOMY
 Help in Economic growth of country.
 Contribute in growth of Total GDP.
 Retail sector presently contributing 15%
to Total GDP.
 Assumed to contribute even more in
coming years.

15. COMPARISON OF FDI
INFLOW.

16. India China
Focus on Services Focus on Industry
High labor cost Low Labor Cost
Home grown Capital FDI
Old technology Adaptability to Latest
technology
Democratic Government Communist Government

18. ADVANTAGES
 Generates huge employment
 Increased investment in technology
 The huge tax revenue generated.
 The consumer gains from the wide variety of choices
and a more diversified basket.

19. DISADVANTAGES
 Foreign Players would displace
the unorganized retailers
because of their superior
financial strengths.
 The entry of large global
retailers such as Wal-Mart would
kill local shops and millions of
jobs.
 Increase in real estate prices and
marginalize domestic
entrepreneurs