Retail Interface between producer and individual consumer for personal consumption. Retailer One who stocks the producers goods and is involved in the act of selling it to the individual consumer, at a margin of profit.
Organized - Trading activities undertaken by licensed retailers, that is, those who are registered for sales tax, income tax, etc. Eg: Corporate backed hypermarkets. Unorganized - Traditional formats of low-cost retailing, for example, the local kirana shops, owner manned general stores, paan/beedi shops, convenience stores, hand cart and pavement vendors, etc.
A.T. Kearney - well-known international management consultant - India as the second most attractive retail destination globally from among thirty emergent markets.
Foreign Direct Investment (FDI) in its classic form is defined as a company from one country making a physical investment into building a factory in another country. FDI stands for Foreign Direct Investment, a component of a country's national financial accounts. Foreign direct investment is investment of foreign assets into domestic structures, equipment, and organizations
FDI In Multi Brand Retail Trade May Be Permitted Up To 51%, With Government Approval Minimum Amount To Be Brought In, As FDI, By The Foreign Investor, Would Be US $ 100 Million Government will have the first right to procurement of agricultural products
Retail sales locations may be set up only in cities with a population of more than 10 lacs as per 2011 Census only 53 cities qualify for FDI in multi-brand retail out of nearly 8000 towns and cities
51% 100%
Gain a foothold in a new geographic market. Increase a firms global competitiveness and positioning. Fill gaps in a companys product lines in a global industry.
Long-term Market Potential Low cost But Qualified, Educated/Skilled Labor Pool.
Price Reduction. Greater Efficiency and improved living standards. Greater output and domestic consumption. Increase in Domestic Employment/Drop in unemployment Improved Selection
Domestic firms may suffer if they are uncompetitive. If there is a lot of FDI in to one industry, the country may become too much dependent on that industry which might be risky for the country Inflation may increase slightly.
Consumers Access to some of the major global brands. Improved quality and variety of products. Increase competition and expand manufacturing.
SKILLED WORKERS
REAL STATE PROBLEM
COMPETITION
MARKET POWER
INFLATIO N
TAXATION POLICIES
"Permitting FDI (foreign direct investment) in retail in a phased manner beginning with metros and incentivizing the existing retail shops to modernize could help address the concerns of farmers and consumers. FDI in retail may also help bring in technical know-how to set up efficient supply chains which could act as models of development."
ANY QUERY