2. What is FDI
FDI refers to capital inflows from abroad that
is invested in a foreign country.

3. Current Issues in FDI in Retail
• Government has decided to allow 51% FDI in
Multi-brand retails.
• Government has decided to allow 100% FDI in
Single-brand retails.

4. Present Condition:
• Farmers get only 10 to 15% of the price we
pay.
• 3-4 middlemen in between farmers and
customers.
• Huge post produce losses for farmers due to
inadequate facilities.
• A poorly managed food supply infrastructure.

5. What are the pre-conditions:
• Minimum investment of $100 million.
• 50% of the investment is to be in backend
infrastructure development.
• 30% of all raw material has be procured from
India's small and medium industries.
• Government has the first right to
procure material from the farmers.

6. • Permission to set up malls only in cities with a
minimum population of 10 lakhs.
• Only 53 cities qualify for FDI in multi-brand retail
out of nearly 8000 towns and cities.
• Products should be sold under the same brand
internationally.
• Foreign investor should be the owner of
the brand.

8. Who are in Against of FDI
• Political Parties
like: BJP, SP, BSP, DMK, Trinamool
Congress, CPI,CPM etc.
• Unorganized Retail
Sector
• Social Icon

9. Government Arguments & Reason for
against the FDI
• Retail FDI will bring Jobs in India.
• Retail FDI will growth in Economy.
• Retail FDI will help Farmers.
• Retail FDI will help Local Industry.
• Retail FDI will lead to removal of middleman.

10. Retail FDI will bring Jobs in India
• Government Point:
About 1.5 Million Jobs Will Be Created In The Front-end
alone In The Next 5 Years.
Employment opportunities in agro-processing, marketing,
logistics management and front-end retail.
• Opposition Point:
Indian Retail Sector is already employing 40 Million Indians.
Overall jobs created are going to be very less as compared to
jobs which will be lost.

11. Retail FDI will growth in Economy
• Government Point:
New infrastructure will be build, thus real estate sector will
grow consequently banking sector.
• Opposition Point:
FDI will drain out the country’s share of revenue to foreign
countries which may cause negative impact on India’s overall
economy.

12. Retail FDI will help Farmers
• Government Point:
FDI removes the 3-4 middlemen in between farmers and
customers.
Growth of Agro-food processing Industry.
• Opposition Point:
This will make our farmers produce for single buyers, they
will not have any other source to sell so they will have to
accept whatever prices they are giving.

13. Retail FDI will help Local Industry.
• Government Point:
30% of all raw material has be procured from India's small and
medium industries
• Opposition Point:
Major buyers can source the product at cheaper rates from
outside India.
Some industries which are not able to compete shutting down
businesses and unemployment.

14. Multi-brand Retail is good or Bad?

15. Effects on unorganized players
• Dislocation of millions
from their occupation.
• The domestic organized
retail sector might not be
competitive enough to
tackle international players
and might loose its market
share

16. Employment in Retailing
• Limited jobs in manufacturing.
• Cannot provide employment to
semi-literate people.
• Many of the small business
owners and workers from other
functional areas may lose
their jobs, as lots of people are
into unorganized retail business
such as small shops.

17. Conclusion

18. References
• http://www.imentor.co.in/blog/?p=82
• http://www.moneylife.in/article/100-fdi-in-retail-in-
india-good-or-bad/21733.html
• http://www.ndtv.com/article/india/fdi-in-retail-govt-
places-full-page-ads-on-myth-and-reality-153274
• http://www.legallyindia.com/Blogs/Entry/what-does-
51-fdi-in-multi-brand-retail-mean
• http://www.dnaindia.com/mumbai/report_will-fdi-
help-indian-retail-market-grow-pune-speaks-
up_1620277
• http://pib.nic.in/newsite/erelease.aspx?relid=77619

19. QUESTIONS ?
SUGGESTIONS ?
DISCUSSION ?
If this doesn’t happen, I don’t survive.

20. FOR BEING A PATIENT LISTENER