A Study On Appulse of FDI in Indian Retail Sector
A Study On Appulse of FDI in Indian Retail Sector
A Study On Appulse of FDI in Indian Retail Sector
Sector
CHAPTER-1
INTRODUCTION AND DESIGN OF THE STUDY
1.1.
INTRODUCTION
The Indian system of administration and governance is impregnated with flaws like
1.2.
percent of its GDP. The Indian retail market is estimated to be US$ 500 billion and one of the
top five retail markets in the world by economic value. India is one of the fastest growing
retail markets in the world, with 1.2 billion people.
As of 20131, India's retailing industry was essentially owner manned small shops. In
2010, larger format convenience stores and supermarkets accounted for about 4 percent of
the industry, and these were present only in large urban centers. India's retail
and logistics industry employs about 40 million Indians (3.3% of Indian population).Until
1 NIRMIT GOGIA in the Report COMPETITION COMMISSION OF INDIA http://cci.gov.in/
Sri Krishna College of Arts & Science, Department of CommercePage 3
1.3.
1.4.
achieving a certain degree of financial stability development and growth. In order to attact
Foreign direct Investment (FDI) from the worlds major investors and in order to present a
favorable scenario for investors the Indian government has announced a number of reforms
and has implemented several industrial policies. The foreign direct investment is allowed in
India through collaborations that are of financial nature, joint venture collaborations, through
preferential allotments, investment through EURO issues. Apart from this it has opened of
FDI route by setting up of 100% EOUs /EHTPs/ STPs etc and entering into Foreign
technology agreement. As a result of the various policy initiatives taken, India has been
rapidly changing from a restrictive regime to a liberal one, and FDI is encouraged in almost
all the economic activities under the automatic route, huge amounts of foreign direct
investment is coming into India through non- resident Indians, international companies, and
various other foreign investors. The growth of FDI in India boosted the economic growth of
the country major advantages of FDI in India have been in terms of:
Increased capital flow.
Improved technology.
Sri Krishna College of Arts & Science, Department of CommercePage 5
1.5.
Despite the numerous obstacles that existing players and new market entrants have to deal
with, the Indian retail market bristles with abundant promise. According to Global Retail
Development, Index (GRDI) reports published by the leading US based consulting group, AT
Kearney in June 2010, India is the 3rd most attractive retail market for global retailers among the
largest emerging markets. The report also highlights the well documented fact that organized
retail constitutes a mere 5% of the total annual revenues generated, hence providing a
tremendous window of opportunity for both domestic and international retailers to tap into a
burgeoning albeit fragmented market. Indias retail industry is estimated to be worth
approximately US $411.28 billion and is still growing, expected to reach US $804.06 billion in
2015. As part of the economic liberalization process set in place by the Industrial policy of 1991,
the Indian Government has opened the retail sector to FDI slowly through a series of steps
excepting FDI in multi- brand retailing, which has so far been prohibited in India.
1.6.
CHAPTER SCHEME
Deals with the Introduction and Design of the study and includes
Statement of the problem, Objectives of the study, Significance and
Scope of the study.
Chapter 2
Chapter 3
Chapter 4
Chapter 5
Chapter 6