FDI in Indian Retail
Agenda Indian Retail – An overview Types of Retailers FDI Policy in India Opportunities Threats Conclusions
Types Single Brand Retail – 51% FDI is allowed from 2006 Organized retail has grown from USD 2 Bilion in 2002 to USD 37 Biln today in a total of USD 350 Bn Based on Brand Single BrandMulti-Brand Based on Ownership OrganizedUnorganized
FDI Policy in India Single Brand – 51 % Wholesale trading (Cash & Carry) – 100% Multi-brand – Not allowed. Indian economy opened FDI up to 51% under the automatic route in select priority sectors. FDI up to 100% allowed under the automatic route in Cash & Carry (Wholesale) FDI up to 51% allowed in Single Brand Retail
Opportunities Less wastage of Agri-produce Better storage & transport facilities Better Pricing Employment Opportunities For-Ex requirements
Threats Mass-unemployment Predatory pricing Dumping Establishment of Monopolies & disruption of small players.
Recommendations or Conclusions Availability of Bank finance Setting a National Commission Restrictions on Foreign retailers Improving the Retail supply chain
Questions ?