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CHAPTER 1: INTRODUCTION
Overview
Over the past two decades, many countries around the world have experienced
substantial growth in their economies, with even faster growth in international
transactions, especially in the form of foreign direct investment (FDI). he
share of net FDI in world !D" has grown five#fold through the eighties and the
nineties, ma$ing the causes and conse%uences of FDI and economic growth a
sub&ect of ever#growing interest. his unprecedented growth of global FDI in
' around the world ma$e FDI an important and vital component of
development strategy in both developed and developing nations and policies are
designed in order to stimulate inward flows. Infact, FDI provides a win * win
situation to the host and the home countries. +oth countries are directly
interested in inviting FDI, because they benefit a lot from such type of
investment. he home- countries want to ta$e the advantage of the vast mar$ets
opened by industrial growth. On the other hand the host- countries want to
ac%uire technological and managerial s$ills and supplement domestic savings
and foreign exchange. oreover, the paucity of all types of resources vi/.
financial, capital, entrepreneurship, technological $now# how, s$ills and
practices, access to mar$ets# abroad# in their economic development,
developing nations accepted FDI as a sole visible panacea for all their scarcities.
Further, the integration of global financial mar$ets paves ways to this explosive
growth of FDI around the globe.
his report attempts to ma$e a contribution in this context.
HISTORICAL BACKGROUND
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FDI
One of the most stri$ing developments during the last two decades is the
spectacular growth of FDI in the global economic landscape. hisunprecedented growth of global FDI in ' around the world ma$e FDI an
important and vital component of development strategy in both developed and
developing nations and policies are designed in order to stimulate inward flows.
FDI to developing countries in the 's was the leading source of external
financing and has become a $ey component of national development strategies
for almost all the countries in the world as a vehicle for technology flows and an
important source of non*debt inflows for attaining competitive efficiency by
creating a meaningful networ$ of global interconnections. FDI provide
opportunities to host countries to enhance their economic development and
opens new opportunities to home countries to optimi/e their earnings by
employing their resources. In the past decades, FDI was concerned only with
highly industriali/ed countries. 01 were the world-s largest recipient of FDIduring 23 with an investment of '45 million. 6ow, during course of time,
FDI has become a vital part in every country more particularly with the
developing countries and thus its share is increasing year by year.
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1ource7http788www.en.wi$ipedia.org8wi$i8Foreign9direct9investment.:etrieved from ;i$ipedia)
In India, FDI has risen considerably in post*reform period. he importance
and category of FDI has changed significantly since India has opened up its
economy. his has provided high prospects that FDI may serve up as a channel
to advanced economic growth. nother important area where FDI can play its role
significantly is the Indian retail sector which is promising one. FDI in Indian
retail is permitted in selective cases sub&ect to restrictions.FDI is not yet
permitted in ulti +rand :etailing in India due to continuous opposition from
multiple political %uarters.
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FDI IN RETAIL SECTOR
India has emerged as an attractive destination for retailing over the last
few years. he most noteworthy phase of the growth of the sector was between
2#23, when the revenues increased by about ?.= per cent. his
encouraged international retailers to evaluate an entry into the Indian mar$et#
place. For three consecutive years, India topped the list as the most favourable
destination of retailers such as ;al#mart, @arrefour and esco. he estimated
si/e of the retail industry in our nation is approximately A5B billion with an
annual compounded growth rate of '' per cent. Incidentally, the share oforgani/ed retail is relatively small at A23 billion which is &ust 3 per cent of the
total mar$et compared to a typical share of B#4 per cent in 6orth >merica and
;estern Curope and 2#? per cent in the Far#Cast >sian ar$ets. Our share of
organi/ed retailing is significantly lower than in other >sian @ountries such as
@hina (2 per cent), Indonesia (? per cent), hailand (5 per cent), alaysia
(== per cent), and aiwan (4' per cent).
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India-s retailing industry is essentially owner manned small shops. In
2', larger format convenience stores and supermar$ets accounted for about 5
percent of the industry, and these were present only in large urban centres.
India-s retail and logistics industry employs about 5 million Indians (?.? of
Indian population).0ntil 2'', Indian central government denied foreign direct
investment(FDI) in multi# brand retail ,forbidding foreign groups from any
ownership in supermar$ets ,convenience stores or any retail outlets. Cven
single#brand retail was limited to =' ownership and a bureaucratic process.
he typical Indian retail shops are very small.Over'5million outlets operate in
the country and only 5 of them being larger than = s% ft (53 m2) in si/e.
India has about '' shop outlets for every ' people.
JUSTIFICATION
his topic has been chosen by the investigator as her pro&ect wor$ as it
seemed her a burning topic. his topic hovered on the front page of every
newspaper, it was every news channel-s issue of discussion. Cvery newspaper
and every news channel came up with their variety of opinions, some with
positive and some with negative aspect of the issue i.e. FDI.his threw the
investigator into a dilemma. 1o, to come out of the dilemma and have a clear
and broader aspect of the issue with actual facts, this topic was chosen by her.
>lso, the investigator thought this topic to be a uni%ue one (as less no. ofcollege mates too$ this topic)
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IMPORTANCE OF THE STUDY
It is apparent from the above discussion that FDI is a predominant and
vital factor in influencing the contemporary process of global economic
development. he study attempts to analy/e the important dimensions of FDI in
India. he study wor$s out the trends and patterns and overall relationship
between FDI and :etail sector.
OBJECTIES OF THE STUDY
The study covers the following objectives:
1. o present the current status of FDI in Indian retail along with further
scope.2. o analy/e the rationality of allowing FDI in Indian retail with
special importance to multi * brand retailing.?. >nd thus evaluate the impact of FDI on the overall economic !rowth of
the country and to indicate some measures that may be ta$en into
consideration as part of the policy ma$ing process.
METHODOLOGY
his paper attempted to highlight the implications of FDI in multi#
brand retailing along with general overview of FDI based on secondary
information gathered from diversified sources which include literature survey,
news paper articles and internet. oreover, the present paper can be considered
as a review paper.
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icrosoft Office ;ord, Cxcel and @harts, mainly @olumn and Eine
!raph, associated with it were used extensively for visual and better
understanding.
LITERATURE REIE!
1ome of the reviewed literature and case studies are stated below7
Sapna Hooda,a ". 1tudy Of FDI G Indian
CconomyH focused on the impact of FDI on various sectors and thus on overall
economy and on policies G managerial implications arising from this(potential)
impact with reference to various statistical data.
Pulkit garwal ! "sha Tyagi through their case study on FDI in
:etail 1ectorH presented various small but vital definitions and the present
scenario G impact of FDI on :etail 1ector (both single and multi brand) .with
this they also highlighted the scope of FDI in :etail 1ector in the future.
he @hanging Face of Indian :etailH byProf.#alyanasundara$" Department
Of anagement 1tudies, !arden @ity @ollege, +angalore.
FDI in ulti#+rand :etailing #> 1tudy on Indian 1cenarioH byParag Shil
,Prantik %oy,>ssistant "rofessor, Department of @ommerce, >ssam 0niversity.
LIMITATIONS OF THE STUDY
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he assumption that FDI was the only cause for development of Indian
economy in the post liberalised period is debatable. Eac$ of availability of data over a wide range of years limited the scope of
investigation.
ime limitation also acted as a hurdle to have in depth study of the topic.
>s Curopean onetary 0nion was not formed before ', so this restricted the
investigator to analysis more number of years.
>s the investigator is not a full time scholar, the study is narrowed down the
line. y incapacity to conclude over the above topic of study due to its diverse
nature and relevance under different scenario.
CHAPTER #: CONCEPTUALFRAME!ORK
DEFINITION OF RETAIL
In 25, he
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hus,retailing can be said to be the interface between the producer and
the individual consumer buying for personal consumption. his excludes direct
interface between the manufacturer and institutional buyers such as the
government and other bul$ customers.:etailing is the last lin$ that connects the
individual consumer with the manufacturing and distribution chain.> retailer is
involved in the act of selling goods to the individual consumer at a margin of
profit.
DIVISION OF RETAIL INDUSTRY
he retail industry is mainly divided into7# ') Organi/ed 2) 0norgani/ed
:etailing
Organi/ed retailing refers to trading activities underta$en by licensed
retailers, that is, those who are registered for sales tax, income tax, etc. hese
include the corporate#bac$ed hypermar$ets and retail chains, and also the
privately owned large retail businesses.
0norgani/ed retailing, on the other hand, refers to the traditional formats
of low#cost retailing, for example, the local kirana shops, owner manned
general stores,paan&beedishops, convenience stores, hand cart and pavement
vendors, etc.
he Indian retail sector is highly fragmented with B per cent of itsbusiness being run by the unorgani/ed retailers. he organi/ed retail however is
at a very nascent stage. he sector is the largest source of employment after
agriculture, and has deep penetration into rural India generating more than '
per cent of India-s !D". he total retail mar$et in India is estimated at 01A 5B
+n in 2''.he Food G !rocery segment is the largest retail category and
accounts for about B of the total retail mar$et.
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RETAIL MARKET CATEGORIES
CATEGORY 2011 ESTIMATES(IN US $Bn)
Food and grocery ?2=
>pparel ?=
ewellery and watches 2=.3
@onsumer Clectronics G I 22.B
"harmacy '?.
Furnishing and furniture .'
:estaurants G food oints 4.4
Footwear 5.=
+eauty 1ervices '.?
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simple words, FDI refers to capital inflows from abroad that is invested in or to
enhance the production capacity of the economy.
FDI POLICY WITH REGARDS TO RETAILING IN INDIA
It will be prudent to loo$ into "ress 6ote 5 of 23 issued by DI"" and
consolidated FDI "olicy issued in October 2' which provide the sector
specific guidelines for FDI with regard to the conduct of trading activities.
a) FDI up to ' for cash and carry wholesale trading and export trading
allowed under the automatic route.
b) FDI up to =' with prior !overnment approval (i.e. FI"+) for retail trade of
1ingle +rand- products, sub&ect to "ress 6ote ? (23 1eries).
c) FDI is not permitted in ulti +rand :etailing in India.
ADVANTAGES OF FDI IN RETAIL SECTOR
:etailing is one of the world-s largest private industry. Eiberali/ations in
FDI have caused a massive restructuring in retail industry. he benefit of FDI inretail industry superimposes its cost factors.
Cheaper pr!"#%n &a#%'%%e
FDI will ensure better operations in production cycle and distribution.
Due to economies of operation, production facilities will be available at a
cheaper rate thereby resulting in availability of variety products to the ultimate
consumers at a reasonable and lesser price.
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A*a%'a+%'%, & ne- e#hn'.,
FDI enables transfer of s$ills and technology from overseas and develops
the infrastructure of the domestic country. !reater managerial talent inflow from
other countries is made possible. Domestic consumers will benefit getting great
variety and %uality products at all price points.
Ln. er/ #ah '%"%!%,
FDIwill provide necessary capital for setting up organi/ed retail chain
stores. It is a long term investment because unli$e e%uity capital, the physicalcapital invested in the domestic company is not easily li%uidated.
Lea! !r%*er &r he #"nr, e#n/%# .r-h
FDI would create a competition among the global investors, which would
ultimately ensure better and lower prices thus benefiting people in all sections
of the society. here would be an increase in the mar$et growth and expansion.
It will increase retail employment and suppress untrained manpower and lac$ of
experience. It will ensure better managerial techni%ues and success.
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DISADVANTAGES OF FDI IN RETAIL SECTOR
>ccording to the non#government cult, FDI will drain out the country-s
share of revenue to foreign countries which may cause negative impact on
India-s overall economy.
he domestic organi/ed retail sector might not be competitive enough to
tac$le international players and might lose its mar$et share.
any of the small business owners and wor$ers from other functional
areas may lose their &obs, as lot of people are into unorgani/ed retail business
such as small shops.
FDI IN INDIAN RETAIL
Eiberali/ations in FDI have caused a massive restructuring in retail
industry. he benefit of FDI in retail industry superimposes its cost factors.
Opening the retail industry to FDI will bring forth benefits in terms of advance
employment, organi/ed retail stores, availability of %uality products at a better
and cheaper price. It enables a country-s product or service to enter into the
global mar$et, permitting FDI in retail sector may open several benefits to
farmers, consumers and the entire economy as well but it should not be one
country-s planned ob&ective to hamper the economy of another country or to
create political unrest. he !overnment of India was initially very anxious of
allowing FDI in retail sector due to fear of &ob losses, procurement from
international mar$et, @ompetition and loss of entrepreneurial opportunities but
over time, India had to open up the retail sector to FDI as per ;O
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pronouncement. he !overnment in a series of moves has opened up the retail
sector slowly to FDI.
FDI IN INDIAN RETAIL - FURTHER SCOPE
a&or findings7
Despite the numerous obstacles that existing players and new mar$et
entrants have to deal with, the Indian retail mar$et bristles with abundant
promise. >ccording to !lobal :etail Development, Index (!:DI) reports
published by the leading 01 based consulting group, > Jearney in une 2',
India is the ?rd most attractive retail mar$et for global retailers among the
largest emerging mar$ets.he report also highlights the well documented fact
that organi/ed retail constitutes a mere = of the total annual revenues
generated, hence providing a tremendous window of opportunity for both
domestic and international retailers to tap into a burgeoning albeit fragmented
mar$et. India-s retail industry is estimated to be worth approximately 01
A5''.24 billion and is still growing, expected to reach 01 A45.3 billion in
2'= >s part of the economic liberali/ation process set in place by the Industrial
policy of '', the Indian !overnment 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.
FDI IN MULTI-BRAND RETAILING
:etailing is one of the world-s largest private industries. "ermitting FDI
in retail sector of any country will call for many opportunities. FDI in multi
brand retail implies that a retail store with a foreign investment can sell
multiple#brands under one roof. Despite many issues which are against of
allowing FDI in multi#brand retailing, It will ensure ade%uate flow of capital
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into host country in a manner li$ely to promote the welfare of all sections of
people of society, "articularly farmers, and consumers as well.
FDI IN INDIAN MULTI-BRAND RETAIL RATIONALE
he rationale for allowing FDI in multi#brand retail trade may be set out
as follows7
'. >llowing FDI in multi * brand retail trade will benefit consumers and
farmers, and will also aim at bringing down inflation. Farmers, in this case, may
be protected from the domination of intermediaries who dominate the interface
between the manufacturers or producers and consumers in most cases and ma&or
part of the share of profit is eaten by those middlemen causing loss to the
farmers. Further, consumers will get variety of products at cheaper prices and
will have more choice to get international brands at one place.
2. >llowing international retailer such as ;al#art and @arrefour, which have
already set up whole sale operations in the country, to set up multi#brand retail
stores will assist in $eeping commodity prices under control, will cut waste, as
big players will build bac$end infrastructure.
?. "ublic Distribution 1ystem is expected to be improved through allowing FDI
in retail trade.
5. FDI in retail trade, if permitted, then more foreign companies will come and
new infrastructure will build. +an$ing 1ector will grow conse%uently as money
re%uired to build infrastructure would be provided by ban$s.
=. Eac$ of infrastructure (e.g., cold storages) in the retailing chain has been one
of the big issues for years which have led the process to an incompetent mar$et
mechanism. FDI might help India over come such issues by channeli/ing the
resources in the right manner.
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3. "ermitting FDI in retail trade will open huge &ob opportunities. Cstimate says
it will touch not less than 4 la$h obs.
B. >llowing FDI in multi#brand retail will contribute to foreign currency reserveand narrow the current account deficit as well. Further, @ompetition within the
host country sector is a critical driver of improvements in sector performance as
a result of FDI. FDI-s potential for impact can be greater because of the
combination of scale, capital, and global capabilities which allow 6@s to
close existing large productivity gaps more aggressively. FDI can be a powerful
catalyst to spur competition in industries characteri/ed by low competition and
poor productivity such as retail industry due to the current scenario of low
competition and poor productivity.
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CHAPTER $:CASE STUD%"ANALYSIS&FINDINGS
CASE STUDIES OF SINGLE RETAILMARKET
CASE STUDY COCA COLA
@oca cola was the first international soft drin$s brand to enter in
crores soft drin$ mar$et of India in early 'Bs. Indian mar$et was dominated
by domestic brands, with Eimca being the largest selling brand. @ola was the
largest selling flavour with mar$et share of 5, Eemon drin$s ?' and orange
drin$s only '. 0ntill'BB, @oca#cola was the leading soft drin$ brand in
India. +ut due to norms set by the Foreign Cxchange :egulation >ct (FC:>),
@oca#cola left India and did not return till '?.
RBI's move on Foe!"n E#$!%& Re"$(%!on
In 'B5, ultinationals operating in low priority areas li$e consumer
goods were as$ed by :+I (under FC:>) to step down e%uity to 5 either
through e%uity dilution or through e%uity sale.
Non-s%(%e"!) )(%e"o& o* *oe!"n )om+(n!es
@o$e, which operated in India through a branch office, submitted its plan
for stepping down e%uity to the :+I. It offered to hold 5
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e%uity in its bottling and distribution units, but refused to step down e%uity in its
technical and administrative unit.
Co,e (% Lo""e He(s .!%/ %/e In!(n Govenmen%
1ince this was not in line with FC:>, which permitted not more than a 5
holding in all operations, @o$e was as$ed to comply properly with the new
norms. @o$e decided to windup its operations in India, but %uit ma$ing
allegations that the Indian !overnment was forcing it to share its secret formula
for ma$ing its concentrate.
B(me "(me !n ( B( Boo
he Indian !overnment slapped its counter charges and accused the
parent of bleeding profits and repatriating large sums of funds abroad (as
administrative charges) even when the Indian operations were posting losses.
Further, there were allegations of @o$e abusing import licenses# against which it
imported the concentrate# all of which resulted in bad blood between the two
parties.
Co,e E0!s%s In!(
In 'BB, @o$e left India and did not return for nearly two decades. +y
which time, the economic situation had undergone a ma&or transformation.
ore importantly, the particular provision in FC:> had been diluted
completely.
Co,e e en%es In!(
@o$e factored in all these issues at the time of its re#entry. In its
application to IndiaKs Foreign "romotion +oard (FI"+) in 'B, it voluntarily
offered to divest 5 in favour of the Indian public through an I"O at the end
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of three years. his was despite the fact that the FDI norms for the soft drin$
sector did not re%uire mandatory divestment of sta$e and nobody was forcing it
to do so.
A He(%/& Go.%/ %o %/e In!(n E)onom&
>fter re entry, @oca#cola India has made significant investment to build
and continually consolidate its business in the country, including new
production facilities, waste water treatment plants, distribution systems and
mar$eting channels .@oca#cola India is among the country-s top international
investors, having invested more than 01D ' billion in India in the first decade,
and further pledged another 01D 'million in 2? for its operations. @oca#
cola directly employs approximately 3, people and indirectly creates
employment for more than '2=, people in related industries through its vast
procurement, supply and distribution system. he success story of @oca#cola
attracted other investors to invest in India which resulted in competition in
Indian soft drin$ mar$et.
STATISTICAL DATA1 FACT SHEET
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CASE STUDY OF MULTI BRANDRETAILING
Wal-Mart in India
WAL-MART>S FIRST SHOP IN INDIA
In December 23, ;al#art Inc. believed that by the year 2'=, ?= of
India-s retail sales could be from chain stores . his was a radical increase from
the prevailing 2. In ay 2, ;al#art was ready to open its first store inIndia. he reason for ;al#art-s entry in India was clear * he Indian middle
class . he world-s biggest retailer had been silently wor$ing on its strategy for
India for around two years. om#and#pop stores and traditional distribution
networ$s dominated the A?B= billion Indian retail mar$et. ;al#art-s first
outlet was set to launch in the city of >mritsar, "un&ab in 6orth India. he first
store air#conditioned and built over =, s%. ft. was on the outs$irts of thecity, >mritsar. he store employed 2 locals and was li$ely create = indirect
&obs. In the first few wee$s itself, the company had managed to sign on close to
?=, members.
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CASE U3ATES5SNIETS5CURRENT STATUS
=7= &oint venture7 In India, ;al#art has a =7= &oint venture with
+harti Cnterprises in the wholesale cash#and#carry segment.
Direct Farm "rogram7 ultinational retail giant, ;al#art-s Direct Farm
"rogram in India is a partnership with '' small and marginal farmers near
Eudhiana in "un&ab where it encourages cultivation of safe, high#%uality,
seasonal vegetables. Farmers are advised at every stage of cultivation by field
agronomists. Farmers learn about nursery management, transplanting, nutrient
management, as well as harvest and post#harvest practices.
;al#art India in 2'7 In 2', +harti#;al#art plans to launch seven
+est "rice odern ;holesale @ash#>nd#@arry stores across India. hese stores
will be ', s% ft in si/e and each store will involve an investment of A3#B
million.
1ourcing from India7 ;al#art has a large sourcing business in India.
he retail ma&or sources goods worth A'2= million a year from "un&ab. In 2',
;al#art is planning to increase sourcing from India to strengthen its global
business.
;al#mart Eabs in +angalore 7 In addition to its :GD centre in the 1ilicon
Lalley, ;al#art plans to set up another facility in +angalore, India (expected
to be set up by Dec 2'') with about ' developers to wor$ on technologies
and solutions for ;al#art-s global e#commerce business.
YES TO WAL-MART- REASONS
'. ;al#art is world-s largest corporation and it en&oys high status and
recognition, its status and recognition would help ;all#art in dealing
effectively with locals in India.
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2. Its distribution centre and logistics capabilities are $ey strengths adding
unmatched value to its entire value chain.
?. It has immense buying power when dealing with 1uppliers.
5. ;al#martKs focused strategy for human resource management will allow the
company to hire and retain the needed wor$ers in India.
=. Its cross#doc$ing and effective inventory management gives cost advantage
to sustain its Cvery Day Eow "rice 1trategy.
3. >s ma&ority of target customers are price conscious in India its low price G
customer focus would help ;all#art to establishing and building loyalty.
B. >ccess to largest retail mar$et worth A= billion with only 2
of organi/ed retail.
4. One of the fastest growing economies with growing middle class.
. "otential for merger and ac%uisition of local retail chain can ma$e ;all#art
in a dominant player in Indian retail mar$et.
'. ;all#art can diversify from large super centres to local mall based sites.
NO TO FDI IN RETAIL SECTOR THROUGH WALL-MART
;>E>:-1 OLC:0:C1
It is one thing to permit FDI in manufacturing (or high priority
technology content sectors), as was done in '', and %uite another to thin$ that
FDI will be a panacea for all the country-s ills.
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It is in these years that imports from @hina to 01 tripled in value from A
billion to A2B billionN >ccording to the 01 @ensus, between '2 and 2B, the
number of independent retailers fell by more than 3,.
>s ;al#mart-s business continued to grow and the stores began to expand,
communities lost their local retailers and there was less demand for services
such as accounting and graphics design. Eess advertising revenue for local
media outlets also resulted in fewer accounts for local ban$s.
he classic example is the story of destruction of Iowa. In '4?, ;al#mart
opened its first store in the 1tate. 1ince then, several other retail stores were
forced to close shutters.
he growth of ;al#mart has resulted in decreased wages, the shrin$ing middle#
class and increase in wor$ing poor. he savings due to shopping at ;al#mart
cannot compensate for the loss of &ob opportunities and income. here are well#
researched articles suggesting that the 01 is being transformed from a
technologically#advanced manufacturing economy to a mere consuming
economy on account of higher imports.
;al#mart has ensured that the >merican family would not be able to afford
shopping anywhere else. :ight now, the average family of four spends
approximately A5, a year at ;al#mart. his year, the ;alton family (owners
of ;al#mart) will be able to poc$et billions in dividends from their holdings.
he bargaining power of the global trading giant with the !overnments is so
high that it eventually puts pressure on 1tate finances, through tax#brea$s,
effective outsourcing models to $ill production &obs, and demands for increased
investment in social initiatives by !overnments due to &ob displacements.
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1 DC@I1IO6
;al#mart faced allegations of bribery that helped it set up stores much
ahead of its competitors within exico. his resulted in violation of exican
law and the 01 Foreign @orrupt "ractices >ct. horough investigations were
not carried out due to technicalities in the law of limitation and to avoid further
adverse publicity to ;al#mart.
here are studies that to show that giant trading corporations such as ;al#
mart contribute to poverty, which could prove costly in a country such as India
with dense population with diverse base.
One strong argument put forward is the possible savings to the
consuming public. "erhaps, in the absence of FDI in retail, a section of
affordable consumers is paying more. +ut that does not mean the displacement
of small#time traders is a desirable development. Opening up India to overseas
trading giants on an exaggerated perception of benefits of foreign investment is
not such a wise policy decision.
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STATISTICAL DATA1 FACT SHEET
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83;3=? T/e (ve("e *$-%!me /o$& .("e *o ( W(-M(% em+oⅇ T/e
(ve("e *$-%!me /o$& .("e !n me%o (e(s e*!ne (s (e(s .!%/ (
+o+$(%!on o*
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+elow are various data accessed through various sources. hen with the
help of charts prepared, those data8 information were analysed.
hree parameters have been analysed, they are7
G3 GRO6T 8 ANNUAL
3I98 O G3
G3I98 O G3
+ased on the above three parameters ,few inferences have been drawn .
T()*+1: -P %/TH 0 2)
1ource7 ;orld +an$, 2, ;orld Development Indicators
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-#
.
#
/
0
1.
1223
1220
1224
122
DEVELOPING COUNTRIES
GDP GROTH !"ANNUAL#
T()*+3: '-"+0 ' -P
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1ource7 ;orld +an$, 2, ;orld Development Indicators
.
1
#
$
/
3
0
4
2
1.
1223
1220
1224
122
DEVELOPING COUNTRIES
$DI-! O$ GDP
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T()* 4: -"+0 ' -P
1ource7 ;orld +an$, 2, ;orld Development Indicators
.
3
1.
13
#.
#3
$.
$3
/.
1223
1220
1224
122
DEVELOPING COUNTRIES
GDI-! O$ GDP
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T()*+5:6*%)) (S"S+/%)- (S"S
1ource7 ;orld +an$, 2, ;orld Development Indicators
P6on#availability forces to consider average of the data available
1223 1220 1224 122.
3
1.
13
#.
#3
$.
GDI-5 67 GDI
FDI-5 67 GDP
GDP GRO!TH 5
PERCENTAGE
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$INDINGS
r/ Ta+'e 1
It has been found that among various region in the world Cast >sia
G"acific and 1outh >sia shows consistency throughout the period experiencing an
annual growth rates of at least 5.=#= (except in '4 Cast >sia faces negative
growth rate i.e (#)'.') which is far above the world average of 2.5.
On the contrary, Curope G @entral >sia experienced growth below world average.
;hile on one hand, Eatin >merica , iddle Cast and 1ub#1aharan >frica showedan increasing and then decreasing growth rates.
On the other hand, the Curopean onetary union showed first decreasing and
then increasing growth rate.
r/ Ta+'e 2
he FDI8!D" ratio was in no region above 5 throughout the wholetime periodcovered. sian G"acific region . h is
mi ght exp la in to a la rge ex te nt thi s regions success with respect to
attracting mar$et#see$ing FDI.
11> lies in the opposite end of the spectrum, in the sense that this region has been
unable to mobili/e enough domestic resources for the !DI, which since
the mid#'4s has lied below 2 of !D" and below the world average.
CuropeG @entral >sia has experienced a negative downward trend in!DI-s percentage share of !D" .
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Eatin >merica has almost consistently lied &ust below the world average,
whereas the iddle#Cast and 6orth >frica has lied &ust slightly above .
he above constant !DI#!D" ratio which is generally above ? in Cast >sian G"acific :egion during the period might explain to a large extent this region-s
success with respect to attracting mar$et#see$ing FDI according to the survey
conducted by @hristian Jingombe , International Eabour Office named
C"EOC6 CFFC@ OF FDI O6
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In one hand, it is clear that foreign companies will have ample scope to
go for FDI in Indian retail sector as it is promising one and allowing FDI in
multi#brand retail trade of India is expected to open many opportunities to the
Indian people, as mentioned earlier. On the other, there is a big %uestion whether
it will benefit to one section of people at the cost of others. >t this point, it is
very difficult to ensure these two view points through a particular study.
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available to segregate the effect of FDI to support the validity of this
assumption.
Eac$ of financial support constrained to travel around the 6ation to collect data
and thus to depend on very scarce secondary data. Eac$ of availability of data over a wide range of years limited the scope of
investigation.
ime limitation also acted as a hurdle to have in depth study of the topic. It was
not possible to explore all the factors related to the topic.
>s Curopean onetary 0nion was not formed before ', so this restricted the
investigator to analysis more number of years.
>s the investigator is not a full time scholar, the study is narrowed down the
line.
y incapacity to conclude over the above topic of study due to its diverse
nature and relevance under different scenario.
BIBLIOGRAPHY
owards the completion of the pro&ect, various sites Gpublic domains referred to are
given below:
http://www.indianmba.com
http://www.authorstream.com
http://www.indianresearchjournal.com http://www.legalindia.com
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http://www.indianmba.com/http://www.authorstream.com/http://www.indianresearchjournal.com/http://www.legalindia.com/http://www.authorstream.com/http://www.indianresearchjournal.com/http://www.legalindia.com/http://www.indianmba.com/ -
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http://www.articlesphere.com/Article/The-Impact-of-FDI-on-
India---s-Manufacturing- ector/!"#$%& http://www.dipp.nic.in/english/Discuss'paper/D('FDI'Multi)rand
*etailTrading'%+,ul !%$%.pdf http://www.en.wiipedia.org/wii/Foreign'direct'inestment 0 FDI
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http://www.bijapurar.com/printerfriendl.php@
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nell-for-M=s/$3&%6%/$
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http://www.oecd.org/http://www.integraluniversity.ac.in/net/journalsAndPublicationshttp://labour.nic.in/http://www.tsmg.com/download/article/TSMG_Tata_Review-June_2006.pdfhttp://www.tsmg.com/download/article/TSMG_Tata_Review-June_2006.pdfhttp://siadipp.nic.in/policy/icrier_report_27052008.pdfhttp://www.cds.edu/download_files/wp311.pdfhttp://indiafdiwatch.org/fileadmin/WARNstorage/indiwm.pdfhttp://indiafdiwatch.org/fileadmin/India_site/FDI_Broch_1_.pdfhttp://www.bijapurkar.com/printerfriendly.php?filename=ct_cons_india_better.htmhttp://www.bijapurkar.com/printerfriendly.php?filename=ct_cons_india_better.htmhttp://www.bijapurkar.com/indiamyland/indi_celebrating_diversityhttp://www.financialexpress.com/news/Is-FDI-in-retail-a-death-knell-for-SMEs/138090/1http://www.financialexpress.com/news/Is-FDI-in-retail-a-death-knell-for-SMEs/138090/1http://www.oecd.org/http://www.integraluniversity.ac.in/net/journalsAndPublicationshttp://labour.nic.in/http://www.tsmg.com/download/article/TSMG_Tata_Review-June_2006.pdfhttp://www.tsmg.com/download/article/TSMG_Tata_Review-June_2006.pdfhttp://siadipp.nic.in/policy/icrier_report_27052008.pdfhttp://www.cds.edu/download_files/wp311.pdfhttp://indiafdiwatch.org/fileadmin/WARNstorage/indiwm.pdfhttp://indiafdiwatch.org/fileadmin/India_site/FDI_Broch_1_.pdfhttp://www.bijapurkar.com/printerfriendly.php?filename=ct_cons_india_better.htmhttp://www.bijapurkar.com/printerfriendly.php?filename=ct_cons_india_better.htmhttp://www.bijapurkar.com/indiamyland/indi_celebrating_diversityhttp://www.financialexpress.com/news/Is-FDI-in-retail-a-death-knell-for-SMEs/138090/1http://www.financialexpress.com/news/Is-FDI-in-retail-a-death-knell-for-SMEs/138090/1 -
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http://www.indianrealtnews.com/categor/retail-maret/
http://bimtech-retail.com/downloads/FDI'*etailDude.pdf
http://bimtech-retail.com/downloads/*etail'Twist'*etailDude.pdf
http://bimtech-retail.com/downloads/*etailDude'Interiew'$.pdf
http://indiafdiwatch.org/fileadmin/1A*;storage/indiwm.pdf
8THANK YOU9
http://bimtech-retail.com/downloads/FDI_RetailDude.pdfhttp://bimtech-retail.com/downloads/Retail_Twist_RetailDude.pdfhttp://bimtech-retail.com/downloads/RetailDude_Interview_1.pdfhttp://bimtech-retail.com/downloads/FDI_RetailDude.pdfhttp://bimtech-retail.com/downloads/Retail_Twist_RetailDude.pdfhttp://bimtech-retail.com/downloads/RetailDude_Interview_1.pdf