1. FOREIGN DIRECT INVESTMENT
IN INDIAN RETAIL MARKET
-OPPORTUNITIES AND CHALLENGES
BY
A. GURU SELVAN
N. RAM KUMAR
III B.COM
THIAGARAJAR COLLEGE

2. INDIAN RETAIL MARKET
• Pillar of Indian economy
• Accounts for 14 to 15 % of GDP
• One of the top five retail
markets in the world
• 1.2 billion people are engaged in
it
• Employs about 40 million
Indians.

3. FDI SCENARIO IN INDIAN
RETAILING
Government of India has allowed
100% FDI in single brand retail
100% in cash & carry only.
Recently FDI in multi brand retail has
been allowed at 51%.

4. COMBINATION OF INDIAN RETAIL
MARKET
23%
31% Big Retailers
Small Retailers
Hawkers
Push Cart
15% 31%
Vendors

5. THE GENERAL IMPACTS OF
FDI IN RETAILING
Accelerate retail market growth
Farmers will benefit
Foreign brands will promote healthy
competition in market
Push to Infrastructure
Push to productivity
Customers feel that retail stores offer
better deals

6. Regional players will develop their supply chain
strategies
Joint ventures among retailers eases capital flow
Develops the different retail forms and modernizes
the sector
Local entrepreneurs get franchising opportunity for
global products.
promote India‘s manufacturing and export sectors
Gives consumers a better value to goods at a
competitive price

7. CHALLENGES OF FDI IN RETAILING
• Indian retailers have to consolidate their position.
• The import and export balance may be upset
• predatory pricing of global retailers may wipe out the
domestic retailers
• employment in retail sector would be affected.
• High cost of borrowings affect the investment of
domestic retailers.
• global players will give a cut-throat competition for the
existing retailers.

8. conclusion
• Retailing in India has its own challenges
and opportunities
• Small incompetent retail businesses
within a geographical area will be
affected by FDI.
• Several small businesses that are
competing by attracting more consumer
will not be affected by FDI

9. When Indian retailers take
these challenges as
opportunities, they can beat the
global players and even Wal-
Mart is no exception to it.