Indian retail is booming. The future depends on the conditions governing the inflow of FDIs into single-brand and multi-brand retail. Read on to know more.

1. India’s First Retail B School
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FDI (Foreign Direct Investment ) in Retail

2. India’s First Retail B School
Indian Retail Sector 2012
• India ranked fifth in the Global Retail Development Index 2012 (AT
Kearney, leading global management consulting firm)
• An estimated 35 million people are employed in the Indian retail
industry, which makes it the second largest employer in the country
(Bisaria, 2012)

3. India’s First Retail B School
Indian Retail Sector Growth
• India’s retail industry, which currently accounts for around 15% of the
nation’s GDP, is expected to grow almost three times to $660 billion by
2015
• India, with its exploding population has always been an exciting market for
multinational companies, which have been eyeing to invest in the Indian
retail sector for years

4. India’s First Retail B School
Share of Organized Retail
0
10
20
30
40
50
60
70
80
90
US Japan China India
Contribution of Organized Retailing in the Retail Sector by Country
Source: EconomyWatch

5. India’s First Retail B School
FDI: The Backdrop
The Government of India denied foreign direct investment both in
single-brand and multi-brand retailing
The Indian government announced the opening of FDIs both to
single and multi brand retail sectors
The Ministry of Commerce and Industry was seeking cabinet
approval for allowing 51% FDI in multi-brand retail trading and for
increasing the FDI limit in single-brand retail trading from 51% to
100%
The cap on FDI in single-brand retail was finally lifted to 100%
This allowed foreign single brands, like Louis Vuitton, Gucci and
Adidas, to get full control on their retail operations in
India, subject to the condition that they should source 30% of
their goods from India
Until 2006
Nov 2011
Jan 10, 2012

6. India’s First Retail B School
0
5
10
15
20
25
Penetration of Organized Retail Across Categories in the Indian Retail Sector
Source: Indian Mirror
Organized Retail Penetration Across Categories (in %)

7. India’s First Retail B School
Terms and Conditions
Minimum limit for FDI in the country’s multi-brand retail sector
Minimum population of the city in which investment in multi-
brand retail is allowed
Minimum sales to be made to small retailers
Minimum value of manufactured items procured that should be
sourced from small and medium enterprises in India
FDI in retail is subject to the state government’s permission.
$100 million
1 million
30 percent
30 percent

8. India’s First Retail B School
How FDI in Retail May Benefit India
Indian farmers get only around 30-35% of the ultimate retail
price. The rest is consumed by middlemen, wholesalers &
retailers. After the opening of FDIs, retail giants will
purchase goods directly from the farmers, who will receive a
much better price for their products.
A huge amount food grains and vegetables go waste due to
the lack of infrastructure and proper storage systems.
Foreign direct investment in multi-retail is expected to
significant reduce this wastage.
FDI in retail is likely to create about 10 million jobs in the
span of a decade (Indian Staffing Federation report, Sept
2012). Over these years, there would be 4 million direct jobs
& about 5 million indirect jobs created in the Indian
economy.
FDI in retail will benefit Indian consumers with a wide choice
of brands and products.
Benefit to Farmers
New Employment
Benefit to Consumers
Reduced Food Wastage

9. India’s First Retail B School
FDI in Retail: What are the Concerns?
Retail giants like Wal-Mart, Carrefour and Tesco will quite obviously
outperform these traditional Kirana stores in terms of
infrastructure, product range, quality of service, and price range.
As a result, a lot a people who are dependent on earning from
these stores are expected to lose jobs.
Impact on
Kirana Stores
According to an article by journalist
Bhavdeep Kang published by Rediff Business
on November 25, 2011, “Global retail giants
are highly capital intensive and create fewer
jobs. A single Wal-Mart store could put tens
of thousands of mom and pop stores out of
business -- as it did in the US -- while
generating perhaps 3,000 jobs.”

10. India’s First Retail B School
FDI in Retail: What are the Concerns?
A major concern is that opening FDI in retail may
cause huge price hikes in the long run. Global
retail giants will reduce the price of their
products initially in order to capture the retail
market. Once they gain a foothold in the Indian
retail market, they may significantly increase the
cost of goods.
CPI (M) Politburo said in a statement on
September 21, 2012, “By this policy
announcement, Manmohan Singh government
has taken the single biggest step of destroying
the livelihood of the largest number of people
engaged in retail trade in India.”
Inflation in the Long Run
Threat of Unemployment

11. India’s First Retail B School
FDI in Retail: The China Experience
China is an Asian nation with high population and traditional
industries, much like India. While the concerns surrounding the influx
of FDI in multi-brand retail are valid, China’s experience proves
otherwise.
Global retail giants like Wal-Mart entered the Chinese market in 1996.
Have a look at the statistics till now:
 Organized retailing comprises only 20% of
the country’s retail market
 The country’s employment in the retail
industry has grown from 4% of the total
workforce in 1992 to 7% in 2007
 China also witnessed an increase of
around 30% in the number of traditional
retails between 1996 and 2001

12. India’s First Retail B School
About GREAT India B School
GREAT India is the first retail focused business school in India
The courses offered at GREAT India B School are: PG Diploma in
Retail Management, PG Diploma in Retail Entrepreneurship, PG
Diploma in Visual Merchandising and Store Design, MBA (with
specialization in retail), BBA (with specialization in
retail), BCom(Hons) and BA(Hons).
RAI - Retailers Association of India, SCAI – Shopping Centers
Association of India. Close ties with companies in India.
UEL - University of East London, ARC - Australian Retail College.
Close ties with companies in Singapore and Dubai.
1st Retail B School
Courses Offered
Industry Affiliations
Foreign Affiliations

13. India’s First Retail B School
About GREAT India B School
International retail gurus and leaders from academia teach at our
campuses. Great opportunity to gain insight from management
coaches from across the globe.
Modern infrastructure - wi-fi enabled campus and well stocked
library. Interactive teaching methods followed.
Workshops, seminars and industry visits to aid learning.
Campuses at Hyderabad & Lavasa (near Pune). Sprawling
campuses, with hostel, cafeteria, gym, sports facilities (cricket
pitch, tennis court, golf course, jogging track, etc)
International Faculty
Learning Aids
Campus Locations

14. India’s First Retail B School
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