Advanced know how in merchandising, inventory management and technical expertise of the global retailers can significantly improve productivity and efficiency in Indian retailing. If they are able to convince the government to rewrite the laws after signing the deal to make more money – A la Reliance – then it is a bane. Moreover, the critics of the move neglect the impact on consumers who will ultimately respond to the incentives of convenience, price, variety and service. FDI would help in modernization of Indian retail sector. Foreign direct investment excludes investment through purchase of shares. The advantages outweigh the disadvantages of allowing unrestrained FDI in the retail sector, as successful experiments in countries like Indonesia and China demonstrate. Finite, Data Collection Instrument, Demographic:

What is a multi-brand retail FDI, and how does it impact manufacturing? The states which are opposing the FDI in retail may open the doors for it after seeing its benefits in neighbor states as happened during the implementation of VAT. FDI in the buzzing Indian retail sector should not just be freely allowed but should be extensively encouraged. There are 53 such cities. What is the impact of FDI on the retail and e-commerce sector? It was the period when retailers without manufacturing bases started entering into this sector bringing the concept of pure retailing. Therefore, Walmart, Tesco may affect the domestic retailers in a big way.

As a country progresses, its retail sector akin to all other sectors has to modernize too.

FDI in Retail – Pros & Cons

There are some who for their own advantage are opposing the entry of foreign retailers into India. Between then and Maya total of 57 proposals have been approved. 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 will only provide employment to the educated ones. FDI can assure better product quality, better shopping experience and customer services and hence consumers will reap higher benefit.


There are 53 such cities. Moreover, since 50 percent of the investment must come up in the back end infrastructure, supply chain will be improved which will result in reduction in post harvest loss of agriculture commodities.

Improved technology in processing, grading, handling and packaging of goods Maintaining International Standardelectronic weighing, billing, barcode scanning could be a direct corollary of FDI.

What is the scope of FDI in retail? Is it boon or bane? – Quora

Yet there is no clear answer for this quandary, there are views that have been expressed both in favour and against FDI in Indian retail trade. Log In Sign Up. Expenditure on land cost and rentals will not be counted for the purpose of back-end infra-structure. Indian retail industry is divided into organized and unorganized sectors. What is the difference between an FDI in multi-brand retail and an FDI in single-brand retail, in terms of impact on the host economy?

Coming of organized retailing will benefit farmers in big way.

General Awareness Topic for MBA aspirants :FDI in Retail – Pros & Cons |

Further, if at indiqn point in time, this valuation is exceeded, the industry shall not qualify as a ‘small industry’ for this purpose. It usually involves participation in management, joint venture, transfer of technology and expertise.

The conditions stipulated are as follows: Though, global hypermarket and supermarket nane such as Wal-Mart, Carrefour and Tesco are already operating in some form or other, now they can open stores with their own brand names. Furthermore, if there is some substance in the threat, government had taken adequate measures to protect unorganized retailers.

case study on fdi in indian retails- boon or bane

In India retail is the sector which provides second highest employment after agriculture. Small retailers will evolve with additional product lines and brands, better inian, renovation of the stores, introduction of self services, enhanced home delivery etc. But the late s witnessed a fresh wave of new entrants in retail chains.


There will be some irregularities. What are the impacts of e-commerce in Indian economy? Organized retailers require substantial space for opening stores. However, in spite of the recent developments in retailing and undian immense contribution to the economy, retailing continues to be the least evolved industries and the growth of organized retailing in India has been much slower as compared to rest of the world.

FDI resulted organized retailing booh kill small jobs and is not going to provide large employment opportunities to the large number of semi-literate Indian mass. One reason can be as usual that they are not having the adequate information about the recent issue.

Middle man does not have any place in this format of retailing. The decision was criticized in the political circles and appreciated in the economic circle.


case study on fdi in indian retails- boon or bane

The advantages retai,s- the disadvantages of allowing unrestrained FDI in the retail sector, as successful experiments in countries like Indonesia and China demonstrate. This means that majority csae the people of Shimla society were of the view that the organized retail sector will capture the un-organized retail sector. However, in Thailand, after the entry of foreign retailers, number of domestic retailers reduced by 60percent. Today, you will read General Awareness Topic: It is also one of the largest employment generators.

According to the Government, 10 million new jobs will be created 4.