Foreign Direct Investment- “FDI is an investment which has involves the investment of foreign funds into enterprises that operates in a different country of origin from the investor”. The Indian government’s department of industrial policy and promotion has passed a proposal to allow up to 51% FDI in multi-brand retail and 100% in single brand retail. It is a measure of foreign ownership of domestic productive assets such as factories, lands and organizations. The recent survey done by United Nations Conference on Trade and Development.(UNCTAD) suggested that India is the second country (after China) for transnational corporation during 2009-2012.The most attracted sectors for FDI in India is Education, Service, Telecommunication, Construction and in the New technologies. In Indian context, the objective of this paper is to understand the major role of FDI impact on retail sector as well as on the Indian consumers.
Keywords: Organized retail, sunrise sector, globalization, foreign direct investment.
Definition of Retail
In 2004, The High Court of Delhi defined the term ‘retail’ as a sale for final consumption in contrast to a sale for further sale or processing (i.e. wholesale). A sale to the ultimate consumer.
Thus, retailing can be said to be the interface between the producer and the individual consumer buying for personal consumption. This excludes direct interface between the manufacturer and institutional buyers such as the government and other bulk customers. Retailing is the last link that connects the individual consumer with the manufacturing and distribution chain. A retailer is involved in the act of selling goods to the individual consumer at a margin of profit.
Division of Retail Industry – Organized and Unorganized Retailing
The retail industry is mainly divided into: - 1) Organized and 2) Unorganized Retailing
Organized retailing refers to trading activities... [continues]
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(2012, 03). Impact of 100% Fdi on Indian Consumers and Indian Market. StudyMode.com. Retrieved 03, 2012, from http://www.studymode.com/essays/Impact-Of-100-Fdi-On-Indian-930086.html
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