FDI in Retail Policy Perspectives. Retail Sector An Overview. FDI Policy in Retail - Opportunities & Challenges.

Emerging Human Resource Challenges. What lies ahead ?

Issues for Discussion

The commitment of money or capital to purchase financial instruments or assets in order to gain profitable returns.

Investment done by citizens and government of one country (home country) invest in industries of another country (host country).

Foreign Investment through

Foreign Direct Investments

Foreign Institutional Investors

Automatic Route

Government

No permission required

Approval /License required.

 1991- FDI allowed selectively up to 51% in priority sectors. 1997-FDI allowed up to 100% in sectors like mining, manufacturing.

 2000-06 FDI allowed up to 100% in specified sectors. FDI limits increased. Procedures further simplified The top 3 Indian Regions attracting the highest FDI.  Mumbai, Delhi and Karnataka.  Account for nearly 62% of the total FDI.

By Target

Mergers and Acquisitions Horizontal FDI Vertical FDI. *Backward Vertical FDI *Forward Vertical FDI

By Motive

Resource-Seeking Market-Seeking Efficiency-Seeking Strategic-Asset-Seeking

Barter system

Weekly market Village melas

Kirana Stores Conveni ence store

Government Stores

Super markets Hyper markets Malls Brand outlets

Single Brand Retailing Cash and Carry Model

51% 100%

Incentives attract FDI. Market size and potential are sufficient inducers.  Tax breaks, import duty exemptions, land and power subsidies, and other enticements.

FDI inflows from 2000-10 crossed $300 billion

FDI inflows from August 1991 to April2010 were $134.6 billion.