1. FDI IN
RETAIL
Is It Good Or
Bad for Indian
Economy?PRESENTED BY : VISHAL RATHI &
RAVI
PATEL

3. RETAILSECTOR CONTRIBUTION

4.  This is all because as much as 7.8% of
India’s total workforce is engaged in
retail trade. There are two type of
retail stores in India. They are-
1) Organized Retail stores
2) Unorganized Retail stores
Unorganized retail stores are
considered to be the 95% of the
total retail sector of India. It is
argued that these are going to
effect to a large extent with the
entry of big MNC in retail sector
like- Wal-mart, Tesco, Correfour
who sell from groceries to
garments, furniture to fitness
equipment item under one roof.

5. This is the most talked and controversial issue in the country
right now. On 15th sep. 2012 govt. has announced their new FDI
policy in Indian retail sector. As per the notification by the
DEPARTMENT OF INDUSTRIAL POLICY AND PROMOTION the
govt. has allowed FDI in following-
Single Brand Retailing-100%
Multi Brand Retailing-51%
This new policy facing protest from everywhere for instance-
Left Parties, Opposition Parties(BJP,SP,INLD Etc.) & from the
general public also.

6. The union minister of INDUSTRY & COMMERCE Mr. ANAND
SHARMA tried to protect govt. decision regarding FDI by giving
some arguments in favor of FDI or focusing light on the benefits of
FDI for India. These benefits are as-
1) Benefits for consumers
a) Good quality
b) low price
c) Quality of services
2) Benefits for producers
a) Low advertising cost
b) Opportunity to go international

7. 3) Benefits for economy
a) Increase flow of foreign currency in the country.
b) Latest technology in production
c) improved infrastructure facility
d) create employment
He said that if India want to become a superpower in world
economy then it is very much important to open doors for FDI
coz only then we can avail all these benefits. He also said
that the govt. has announced this FDI policy by keeping in
mind the interest of general public and as well as the
economy by putting some restriction on FDI.

8. As the government decision is facing protest from
everywhere the different parties called for the
“BHARAT BAND” or “INDIA CLOSED” on 20th
sep.2012. They have given their arguments against
the FDI. These arguments are as-
1) Create Unemployment
2) Upset the balance of payment
3) Farmers would be at loss
4) Middle man would suffer the most
5) Inflation will be increased

10. FDI in retail would only enter in 10 states & those cities where
population is more than 10 lakh and only 53 cities comes under
this criteria.
Only those MNC who are willing to invest 500 crore, half of it in
the back-end activities such as logistics, infrastructure etc.
would be allowed in the retail space.
The foreign retail stores will have to buy 30% of the product
from the domestic producers.
The unorganized retail sector would not be affected so much
coz they have already created great neighborhood &
unbeatable access.

11. CONCLUSION
After studying all the arguments against and in favor of
FDI we can conclude that the govt. decision is a good
decision coz it is very much important for Indian
economy to grow with world’s economies and this can
be possible by exploiting all the opportunity available
in the international market and FDI is a good medium
for that.
Moreover it has more positive effect than negative
effect. So, we should concentrate on the positive part
and try to remove the hurdles that are in the path of
successful implementation of FDI policy.

12. THANK
YOU