Introduction

Foreign direct investment (FDI) or foreign investment refers to the net inflows of 
investment to acquire a lasting management interest (10 percent or more of voting
stock) in an enterprise operating in an economy other than that of the investor
It is the sum of equity capital, reinvestment of earnings, other long-term capital, and
short-term capital as shown in the balance of payments. It usually involves
participation in management, joint-venture, transfer of technology and expertise.
There are two types of FDI: inward foreign direct investment and outward foreign
direct investment, resulting in anet FDI inflow (positive or negative) and "stock of
foreign direct investment",
which is the cumulative number for a given period. Direct investment excludes 
investment through purchase of shares.[2] FDI is one example of 
international factor movements.
 Foreign direct investment in India

• Starting from a baseline of less than USD 1 billion in 1990, a

recent UNCTAD survey projected India as the second most
important FDI destination (after China) for transnational
corporations during 2010-2012. As per the data, the sectors
which attracted higher inflows were services,
telecommunication, construction activities and computer
software and hardware. Mauritius, Singapore, the US and the UK
were among the leading sources of FDI. FDI for 2009-10 at USD
25.88 billion was lower by five per cent from USD 27.33 billion in
the previous fiscal. Foreign direct investment in August dipped
by about 60 per cent to aprox. USD 34 billion, the lowest in 2010
fiscal, industry department data released showed. [7]
 Why FDI ?
• Improves Competition
• Develops the market
• Greater level of exports due to increased sourcing by
major players
• Sourcing by wall-mart from china improved multifold
after FDI was permitted in china
• Similar increase in sourcing observed for metro’s in
india
• Provide access to global markets for indian producers
Overview of Retial Business in India
• Median age
• Growth of ATM’s
• Rising disposable incomes
• Urbanization
• Shopping convenience
FDI In Retail Sector
 Impact of Corporate Entry Into Retail

• Impact on shop-keepers & traders

• Impact on farmers
• Impact on workers , Suppliers & Excisting
Industries
• Impact on environment and health
 FDI
A Boon or A Bane
Boon Ban

1. Inflow of investments and funds 1.Cutthroat competition

2. Generates more employment 2.Creating monopoly
3. Increased local sourcing 3.Increase in real estate prices
4. Provide better value to end consumers 4.Absence of proper regulatory guidelines
5. Growth of infrastructure would induce unfair trade practices
6. Cost reduction 5.It is an intermediate value adding
7. Improvement in supply chain and process
warehousing
 Who’s Doing What?
• Gitanjali group to invest rs 100 Crores in luxury
connexions & luxury malls
• Wills lifestyle to increase stores to 100
• Dabur india plans tie-up with kirana stores
• Godrej to launch 20 specialty boutique stores by 2011
• Subiksha stores touch 1000 stores
• Future group to open 225 big bazaar stores
• Bharti retail to have super & Hyper markets ; will partner
with kirana stores through franchise relience mart in
bangalore and gujarat
Conclusion