1. PRESENTATION BY
2nd B.COM(CORPORATE SECRETARY SHIP)
S.C.P JAIN COLLEGE
MINJUR-601203

2. INTRODUCTION
• Foreign direct investment (FDI) or foreign investment refers to the net
inflows of investment to acquire a lasting management interest (10% or
more) in an enterprise operating in an economy other than that of the
investor. Foreign direct investment is the sum of equity capital,
reinvestment of earnings and other long or short term capital as shown in
the balance of payments. It usually involves participation in management,
joint venture, transfer of technology and expertise. There are two types of
FDI: (a) Inward foreign direct investment and (b) Outward foreign direct
investment. Foreign direct investment excludes investment through
purchase of shares. Foreign direct investment can be used as one measure of
growing economic globalization.

3. RETAIL TRADE :
BACKBONE OF ECONOMY
 Retail trade is world’s oldest business.
 Retail trade consists of sale of goods & services to consumers
for their personal, family or household use.
 Based on turnover and volume, retail trade is worlds biggest
economic activity.
 In the year 2000, world turnover in retail trade is estimated
around Rs. 3,10,20,000 crores.
In India by investing nominal Capital a person can start retail
business.
In India Retail shops are generally owned and run by family.
The whole family gets self employed.

4. EMPLOYMENT GENERATION
UNDER EXISTING SYSTEM
 FARM LABOURS
 HAMALS
 DALALS
BROKERS
TRANSPORTERS
TEA SHOP OWNERS
HOTELS
DHABAS
SHOP KEEPERS
AFTER M.N.C. TAKE OVER
ALL WORKS IN FARM BY MACHINE UNDER CORPORATE FARMING
AUTOMATIC TRANSFER AND PACKING BY MACHINES.
SALE TO CUSTOMERS THROUGH CHAIN OF DEPARTMENTAL STORES.
LARGE NUMBER OF SELF EMPLOYED TO BECOME UNEMPLOYED.

5. WHAT WILL HAPPEN TO RETAIL TRADE
 These companies open chain of shops. With a shop in each area the
retail small shopkeepers will be put to heavy loss
 Slowly the local shops will start closing down.
 These shops will capture the trade.
 In countries where they have established their market share is
Name of Country % of Market Share
America 80%
England 80%
Western Europe 70%
Brazil 40%
Thailand 40%
Korea 35%
China 20%
Malaysia 20%
India 3%
 Remember example of ‘BATA’ in shoe business.
 Imagine Roadside DHABA’s after RELIANCE FOOD CHAIN Starts
working.
 Cold drink business in India.

6. WHAT WILL HAPPEN TO
LOCAL RETAIL TRADE
 No of Retail outlets Between 1981-99 in United
Kingdom came down from 56862 to 25800.
 Between 1970-80 in Europe about 4 lakhs Retail
shops were closed.
 Competition shall be limited to Big Retail Houses
 In the year 2000 Five Big Fast food companies
captured following percent market share :
Country % Share
Norway 99
Swezerland 88
Sweden 94
UK 64
Portugal 57

7. WHAT HAPPENED IN OTHER
ASIAN COUNTRIES
 Other countries are also unhappy. Many countries have
started taking precautions.
 Indonesia and Malaysia have established zones within which
these foreigners can do trade.
 In Japan Big companies have to discuss with small traders.
There is Zoning system also. Hence these companies have to
establish their shops outside city limits.
 There is wide discontent amongst shopkeepers & people in
the countries to which these store belong.
 The city counselor of California & Chicago have refused to
allow opening of new shops to WALMART.
 These shops are required to take permission in countries like
France, Germany and America.

8. NOW ITS TURN OF INDIA
 The tough stand taken till recently by Central Govt., Foreign
Retail Traders could not enter India.
 It is unfortunate that Central Cabinet has given approval to
FDI in Retail Trade.
 Shift of Major retail trade to these big companies will render
small traders & their employees unemployed.
 Many companies with the help of contract farming will sell
goods produced in farms directly from their chain of stores.
 After establishing control over purchases & sale these
companies will start dictating.
 These companies will keep only graduates and above in their
employment. There will be no scope for employment to
under graduate and others.
 In the event of non receipt of payment of supplies, it
becomes impossible to reach owners.

9. PRESENT CONDITION OF TRADERS
Fringe Benefit Tax
VAT
INEFFICIENT
LICENCES & PERMITS
INDUSTRIAL DISPUTE ACT LABOURS
SHOP & ESTABLISHMENT ACT PREVENTION OF BLOCK MARKETING ACT
COSUMER PROTECTION ACT ANTI HOARDING & PROFEELING ACT
WEIGHT & MEASUREMENT ACT MONEY LENDING ACT
PACKAGING ACT PRODEND FUND ACT
PREVENTION OF FOOD ADULTRATION ACT MINIMUM WAGES ACT
ESI ACT
GRATUITY ACT
BONUS ACT
ENTRY TAX
SERVICE TAX
FDI in Retail Trade
ANTI SOCAL ELEMENTS
OCTROI
WATER TAX
CENTRAL
EXCISE
POLITICIAL INTERFERANCE
PURCHASE TAX
SALES TAX INCOME TAX
POOR MARKET
CONDITION POWER PROBLEM
Cash Transaction Tax
INSPECTOR RAJ STAMP DUTY &
Quarterly ‘C’ Form
WELTH TAX
HIGH BANK
CHARGES PROFESSIONAL TAX
New Naka Complex
ESSENTIAL COMMODITIES ACT

10. Aviation Information
Telecom Technology
Infrastructure
Retail Traders
Banking
Insurance
Pharma
Mining
Steel
Professional
Education

11. REQUEST STOP FDI IN
RETAIL TRADE
 If Domestic Retail Trade is allowed by Big MNC’s etc., there
will be Large Scale Unemployment.
 A new class of unemployed called “Unemployed Traders”
will join the existing force of unemployed persons.
 These companies will sell internationally procured products.
Domestic Industry will suffer.
 Everybody knows how Big Fish eats away small fishes.
 Keeping the experience of other countries in mind, Govt.
should not take any such decision for which the whole
country and coming generation will have to suffer.

12. INDIA : MY COUNTRY
DON’T SEE INDIA AS POPULATION OF ONE HUNDRED CRORE
MOUTHS TO FEED.
SEE IT AS A MARKET OF ONE HUNDRED CRORE CONSUMERS WITH
TWO HUNDRED CRORE EYES TO WATCH YOUR PRODUCTS AND
TWO HUINDRED CRORES HANDS TO BUY YOUR PRODUCTS.
WORLDS LARGEST EMERGING RETAIL MARKET : WHO WILL
CONQUOR IT : WE OR THEY?
DO NOT MAKE MY GOVEREMENT AS,
 GOVEREMENT BY MNC,
 GOVEREMENT OF MNC AND
 GOVEREMENT FOR MNC’S

13. INDIA : MY COUNTRY
• Being a citizen of INDIA , we the students should
encourage the retail marketing in INDIA , We should send
the request to our Honorable External Minister
Dr.S.M.Krishna to solve the problems of retail marketing in
INDIA
• We should support our INDIAN retail traders to conduct the
business in our own country. So only we can make our
INDIA a super power country in future
INDIAN MARKET FDI TARGET
IF WE REGRET THEY WILL FORGET