FDI in Retail (India)
SUBMITTED BY:
NIRMIT GOGIA
4TH YEAR, B.A., LLB
OSMANIA UNIVERSITY, HYDERABAD
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DISCLAIMER
NIRMIT GOGIA
ii
iii
TABLE OF CONTENTS
S.no
Topic
Page No.
1.
INTRODUCTION TO FDI
1
2.
HISTORICAL TRENDS IN FDI IN INDIA
2
3.
PRESENT SHAPE OF FDI
2
4.
THE ORGANIZATION OF INDIA’S RETAIL INDUSTRY
3
5.
EFFECT OF FOR DIFFERENT STAKEHOLDERS:
4
6.
THE CASE OF WALMART
10
7.
COMPETITION RELATED ISSUES
11
8.
CASES
13
9.
CONCLUSION
15
10.
BIBLIOGRAPHY
16
iv
Introduction to FDI
Foreign Direct Investment (FDI) broadly encompasses any long-term investments by an entity that is not a resident of the host country. Typically, the investment is over a long duration of time and the idea is to make an initial investment and then subsequently keep investing to leverage the host country’s advantages which could be in the form of access to better (and cheaper) resources, access to a consumer market or access to talent specific to the host country - which results in the enhancement of efficiency. This long-term relationship benefits both the investor as well as the host country. The investor benefits in getting higher returns for his investment than he would have gotten for the same investment in his country and the host country can benefit by the increased know how or technology transfer to its workers, increased pressure on its domestic industry to compete with the foreign entity thus making the industry improve as a whole or by having a demonstration effect on other entities thinking about investing in the host country.
Retail Sector is one of the most important pillars of Indian economy and it is growing at a phenomenal pace. Foreign Direct Investment (FDI) in retail sector plays an integral role in the economic growth. FDI in Multi-brand retail can be seen as an important reform to revive the economy and to ease supply side pressures
NIRMIT GOGIA
4TH YEAR, B.A., LLB
OSMANIA UNIVERSITY, HYDERABAD
|Page
i
DISCLAIMER
NIRMIT GOGIA
ii
iii
TABLE OF CONTENTS
S.no
Topic
Page No.
1.
INTRODUCTION TO FDI
1
2.
HISTORICAL TRENDS IN FDI IN INDIA
2
3.
PRESENT SHAPE OF FDI
2
4.
THE ORGANIZATION OF INDIA’S RETAIL INDUSTRY
3
5.
EFFECT OF FOR DIFFERENT STAKEHOLDERS:
4
6.
THE CASE OF WALMART
10
7.
COMPETITION RELATED ISSUES
11
8.
CASES
13
9.
CONCLUSION
15
10.
BIBLIOGRAPHY
16
iv
Introduction to FDI
Foreign Direct Investment (FDI) broadly encompasses any long-term investments by an entity that is not a resident of the host country. Typically, the investment is over a long duration of time and the idea is to make an initial investment and then subsequently keep investing to leverage the host country’s advantages which could be in the form of access to better (and cheaper) resources, access to a consumer market or access to talent specific to the host country - which results in the enhancement of efficiency. This long-term relationship benefits both the investor as well as the host country. The investor benefits in getting higher returns for his investment than he would have gotten for the same investment in his country and the host country can benefit by the increased know how or technology transfer to its workers, increased pressure on its domestic industry to compete with the foreign entity thus making the industry improve as a whole or by having a demonstration effect on other entities thinking about investing in the host country.
Retail Sector is one of the most important pillars of Indian economy and it is growing at a phenomenal pace. Foreign Direct Investment (FDI) in retail sector plays an integral role in the economic growth. FDI in Multi-brand retail can be seen as an important reform to revive the economy and to ease supply side pressures