By Sweta Golcha

Regn no. 224-1221-0565-10

Roll no. 1224-51-0204

FDI:
It refers to capital inflows from
abroad that is invested in or to
enhance the production
capacity of the economy.
FII:
It refers to investment from
abroad in the financial market
of the host country.

WHAT IS RETAIL ?

In simple words RETAIL means sale to

the
ultimate consumer.
Thus, RETAILING = Interface between
the
producer and the individual consumer
buying
for personal consumption.
DIVISIONS

1.Organised Retailing
2.Unorganised Retailing

FDI IN RETAILING
Single brand retailing

FDI in Single brand retail implies

that a retail store with foreign
investment can only sell one brand.
Multi- brand retailing
FDI in Multi Brand retail implies
that a retail store with a foreign
investment can sell multiple brands
under one roof.

PROSPECTED
FDI up to 100% for

cash & carry

wholesale trading.
FDI up to 51% in
single brand
retailing.
FDI in multi brand
retailing not
permitted.

FDI up to 100% for cash

& carry wholesale trading.

Single brand retailers
such as Ikea, can own
100% of their Indian
stores, up from previous
cap of 51%.
FDI of up to 51% in
multi-brand sector.
The retailers will have to
source at least 30% of
their goods from small
and medium sized Indian
suppliers.

 To present the current status of FDI in Indian

retail along with further scope.

To analyze the rationality of allowing FDI in
Indian retail with special importance to multi
brand retailing.
And thus evaluate the impact of FDI on the
overall economic Growth of the country.

Based on secondary information

gathered from diversified sources

which include literature survey, news
paper articles and internet has been
analysed.
TOOLS USED:
Microsoft Office Word, Excel and
Charts, mainly Column and Line
Graph, associated with it were used.

The assumption that FDI was the only cause

for development of Indian economy in the

post liberalised period is debatable.
Lack of financial support and thus has to
depend on very scarce secondary data.
Lack of availability of data over a wide
range of years .
Time limitation
As European Monetary Union was not
formed before 1990, so this restricted the
investigator to analysis more number of
years.
Imperfect conclusions .

Three parameters have been analysed,

they are:
GDP GROWTH % ANNUAL
FDI-% OF GDP
GDI-% OF GDP
Based
on
the
above
three
parameters ,few
inferences have been drawn .

GDP GROWTH %

FDI AS A % OF GDP

GDI AS A % OF GDP

GDI,FDI & GDP ON 4 CONSECUTIVE YEARS

UPCOMINGWALMART
From 1993 to 2003,

Coca Cola invested

more than US $ 1
Billion in India
Coca Cola achieved
39% Volume growth
and 23% industrial
growth reaching a
breakeven
profitability in the
region in 2002.

100 million: The

number of people who

shop at Wal-Mart's
3400 American stores
every week.
1.2 million: The number
of Wal-Mart associates
in the U.S.
Internationally, WalMart employs an
additional 330,000
associates.

Coca cola has more

than 23 companyowned bottling

operations.
Coca cola has more
than 25 franchiseeowned bottling
operations.
Coca cola employs
approximately 8000
local people.
Coca cola indirectly
creates
employment for
more than 1 lakh
50 thousand people
in India.

600,000: The number

of new employees
Wal-Mart hires each
year. The company's
turnover rate is 44
percent -- close to the
retail industry
average.
1979: The year WalMart's sales first top
$1 billion.
$256 billion : WalMart's sales in 2003.
35: The number of
Wal-Mart
Supercenters in China.
8 percent: The amount
of total U.S. retail
sales, accounted for
by Wal-Mart.

To

match the benefits with the

losses that will cause to any section of
people in the country, if any.
Deciding the percentage of stake
that will be allowed to foreign
companies .
Imposition number of conditions .
May be allowed to invest in Indian
retail sector if it is not backed by
political interests.
Interests of farmers and small
traders are protected. No job losses.