FDI IN RETAIL SECTOR

PRESENTED BY

Mr. TUSHAR R. VAIDYAtusharvaidya143@gmail.comMBA II

FDI IN RETAIL

THINGS TO REMEMBER -

Before we go ahead, we should keep certain basic facts in our mind.

We are a country with huge population out of which majority are

unprivileged and Below Poverty line.

We are people with tradition, culture and ethics.

In our country it is very difficult to get alternate employment.

Our survival is because of our collective strength.

The Govt. policies have been Anti Growth oriented for TRADERS.

The Traders Voice is not heard by decision makers.

In fact Traders have no representation in Govt.

LICENCES & PERMITSINDUSTRIAL DISPUTE ACTSHOP & ESTABLISHMENT ACTCOSUMER PROTECTION ACTWEIGHT & MEASUREMENT ACTPACKAGING ACTPREVENTION OF FOOD ADULTRATION ACT PREVENTION OF BLOCK MARKETING ACT

ANTI HOARDING & PROFEELING ACTMONEY LENDING ACTPRODEND FUND ACTMINIMUM WAGES ACTESI ACTGRATUITY ACTBONUS ACT

INEFFICIENT LABOURS

PRESENT CONDITION OF TRADERS

INSPECTOR RAJ

POLITICIAL INTERFERANCE

ANTI SOCAL ELEMENTSWATER TAX

POWER PROBLEM

HIGH BANK CHARGES

OCTROI

SERVICE TAX

WELTH TAX

PROFESSIONAL TAX

INCOME TAX

ENTRY TAX

VATSTAMP DUTY

POOR MARKET CONDITION

PURCHASE TAX

ESSENTIAL COMMODITIES ACT

CENTRALEXCISE

FDI in Retail Trade

Fringe Benefit Tax

Cash Transaction Tax&

Quarterly ‘C’ Form

Sales tax

RETAIL TRADE : BACKBONE OF ECONOMY

Retail trade is world’s oldest business.

Retail trade consists of sale of goods & services to consumers for their personal,

family or household use.

Based on turnover and volume, retail trade is worlds biggest economic activity.

In the year 2000, world turnover in retail trade is estimated around Rs. 3,10,20,000

corers.

In India by investing nominal Capital a person can start retail business.

In India Retail shops are generally owned and run by family. The whole family gets

self employed.

WHAT IS EXACT FDI IN RETAIL ?

51 % FDI allowed in single-brand formats

100 % FDI in cash-and-carry format

NO FDI in multi-brand stores ( like Wal-Mart)

Trends indicate that the FDI would open up in retail

sector,

However political consensus has to be reached before that

happens

CONTRACT FARMING

COLLECTION OF AGRICALTURE PRODUCTS

TO OWN FACTORY

TO OWN DEPT. STORE

TO CUSTOMER

We all are

BENEFITS

Benefits of FDI in RetailInflow of investment and funds.Improvement in the quality of employment.Increased local sourcing.Provide better value to end consumers.Investments and improvement in the supply

chains and warehousing.Franchising opportunities for local

entrepreneurs.Growth of infrastructure.Cost reduction.Implementation of IT in retail.

DRAW BACKS

Drawbacks of FDI in RetailWould give rise to cut-throat competition

rather than promoting incremental business.Promoting Cartels and Creating Monopoly.Increase in the Real Estate Prices.Marginalize domestic entrepreneurs.The financial strength of foreign players

would displace the unorganized players.Absence of proper regulatory guidelines

would induce unfair trade practices like Predatory