1. FDI IN RETAIL Is It Good Or Bad for Indian Economy?PRESENTED
BY : VISHAL RATHI & RAVI PATEL
2. RETAILSECTOR CONTRIBUTION 3. This is all because as much as
7.8% of Indias total workforce is engaged in retail trade. There
are two type of retail stores in India. They are- 1) Organized
Retail stores 2) Unorganized Retail stores Unorganized retail
stores are considered to be the 95% of the total retail sector of
India. It is argued that these are going to effect to a large
extent with the entry of big MNC in retail sector like- Wal-mart,
Tesco, Correfour who sell from groceries to garments, furniture to
fitness equipment item under one roof. 4. This is the most talked
and controversial issue in the country right now. On 15th sep. 2012
govt. has announced their new FDI policy in Indian retail sector.
As per the notification by the DEPARTMENT OF INDUSTRIAL POLICY AND
PROMOTION the govt. has allowed FDI in following- Single Brand
Retailing-100% Multi Brand Retailing-51% This new policy facing
protest from everywhere for instance- Left Parties, Opposition
Parties(BJP,SP,INLD Etc.) & from the general public also. 5.
The union minister of INDUSTRY & COMMERCE Mr. ANAND SHARMA
tried to protect govt. decision regarding FDI by giving some
arguments in favor of FDI or focusing light on the benefits of FDI
for India. These benefits are as- 1) Benefits for consumers a) Good
quality b) low price c) Quality of services 2) Benefits for
producers a) Low advertising cost b) Opportunity to go
international 6. 3) Benefits for economy a) Increase flow of
foreign currency in the country. b) Latest technology in production
c) improved infrastructure facility d) create employment He said
that if India want to become a superpower in world economy then it
is very much important to open doors for FDI coz only then we can
avail all these benefits. He also said that the govt. has announced
this FDI policy by keeping in mind the interest of general public
and as well as the economy by putting some restriction on FDI. 7.
As the government decision is facing protest from everywhere the
different parties called for the BHARAT BAND or INDIA CLOSED on
20th sep.2012. They have given their arguments against the FDI.
These arguments are as- 1) Create Unemployment 2) Upset the balance
of payment 3) Farmers would be at loss 4) Middle man would suffer
the most 5) Inflation will be increased 8. FDI in retail would only
enter in 10 states & those cities where population is more than
10 lakh and only 53 cities comes under this criteria. Only those
MNC who are willing to invest 500 crore, half of it in the back-end
activities such as logistics, infrastructure etc. would be allowed
in the retail space. The foreign retail stores will have to buy 30%
of the product from the domestic producers. The unorganized retail
sector would not be affected so much coz they have already created
great neighborhood & unbeatable access. 9. CONCLUSION After
studying all the arguments against and in favor of FDI we can
conclude that the govt. decision is a good decision coz it is very
much important for Indian economy to grow with worlds economies and
this can be possible by exploiting all the opportunity available in
the international market and FDI is a good medium for that.
Moreover it has more positive effect than negative effect. So, we
should concentrate on the positive part and try to remove the
hurdles that are in the path of successful implementation of FDI
policy. 10. THANK YOU
