This will not only favor the retail sector develop in terms of design concept, construction quality and providing modern amenities but will also help in creating a consumer-friendly environment. If Wal-Mart and other retail chains get a foothold in India; it will mean displacement of small retailers and farmers. Only single-brand products are sold i. In short, both unorganized and organized retail are bound not only to coexist but also achieve rapid and sustained growth in the coming years. References – Retail in India. While foreign investors may salivate at the thought of selling to a 1.

Along with that wal-mart will also bring its retail expertise to India so that they can attract consumers. Organized retail would thereby bring more stability to prices, unlike the present system where hoarding and artificial shortages by profiteering intermediaries push up product prices. Why the Government is reluctant to allow more FDI flow in retail sector? Not only tha,t there is an exchange of technologies as well whenever any two countries come together to work, for eg: What additional penalties could be levied?

Following a sharp fall multubrand FDI will also benefit the farmers in India as the multi brand retailers who will operate here will be purchasing the goods directly from the farmers which means that the demand will rise and farmers will be able to sell their products at better and fairer price.

All you want to know about FDI in single-brand retail – The Hindu BusinessLine

Anyway, if the domestic big players are allowed to operate, the job loss problem for the small shops would remain, while the benefits from larger exports would not be there. Notably, the paper does not put forward any upper limit on FDI in multi-brand retail. FDI in retailing can upset the multibrane balance, as large international retailers may prefer to source majority of their products globally rather than investing in local products.

No threat to kiranas mom-and-pop stores The Indian retail industry is generally divided into organized and unorganized retailing: FDI in retailing was permitted in China for the first time in There has been opening of Indian economy to foreign organization for foreign direct investment through organized retail.


Should it be stipulated that a minimum percentage of the latter’s sales should be made to retailers through special wholesale windows? Organized retailing has significant backward linkages through setting up of supply chains, investment in food processing industry and manufacturing units increased productivity of agriculture, growth of interlinked sectors such as tourism and IT.

The global retailers have advanced management know how in ln and inventory management and om adopted new technologies which can significantly improve productivity and efficiency in retailing.

Though the data on volume of turnover by retail is not separately maintained, commodity composition of private consumption expenditure provides reasonable estimates of the size of the retail sector.

Competent management practices and economies of scale, joined with lndia acceptance of global best practices and modern technology, could immensely recover systemic competence. This could be achieved through stabilizing prices and reducing inflation, which, in turn, could be achieved through direct buying from farmers, improving supply chain inefficiencies to multibran transit losses, improved storage capabilities to control exsay j demand imbalances, better quality and safety standards through farmer development and increased processing of produce.

Domestic gas pricing formula. Greater Sourcing From India 6. However, the limit of equity participation can be increased in due course of time as we did in telecom, banking and insurance sectors. All you wanted to know about short covering. Problems of FDI for local Retailers: In case of these countries, their companies get an opportunity to explore newer markets and thereby generate more income and profits.

“FDI in India’s Multi Brand Retail Sector”: How to Get Ready for the Big Play

These conditions stipulate that: All you want to know about FDI in single-brand retail. Though freelancing is a way to do flexible, meaningful work, there are financial and mental fei to A multi-brand retail store is like your typical Big Bazaar which sweeps many brands under one roof. Further, there is a need for yield improvement, which could be achieved through use of contract farming to disseminate technological know-how, working with farmers to promote awareness about soil quality, pesticides and fertilizer usage, grading, sorting capabilities and increasing availability of low interest credit for farmers.


India is the only major country which has still not allowed FDI in retailing. Planet Retail and Technopak Advisers Pvt.

essay on fdi in multibrand retail in india

Why the Government is reluctant to allow more FDI flow in retail sector? Also, by reducing the number of intermediaries, organized retailing will lead to some job displacement. Emergence of organized retail sector in India has more to do with increasing purchasing power of buyers and modern supply and logistic management techniques. Should an exclusive legal and regulatory framework be established to protect their interests?

The specter of large supermarket brands displacing traditional Indian mom-and-pop stores is a hot political issue in India, and the progress and development of the newly liberalized single-brand retail industry will be watched with some keen eyes as concerns further possible liberalization in the multi-brand sector. FDI is also permitted in cash-and-carry outlets, where goods are sold only to those who intend using them for commercial purposes Metro, Shoprite.

Why body language is observed in PI?

Only in did China finally permit percent FDI and local Chinese grocery stores have since grown from 1. From cricket to shipping, weather insights are rretail enterprises stay one step ahead.

essay on fdi in multibrand retail in india

High cost of borrowing forces the domestic players to charge higher prices for the products.