For the purpose of ascertaining the sourcing requirement, the relevant entity would be the company, incorporated in India, which is the recipient of FDI for the purpose of carrying out single-brand product retail trading. The existing large number of fragmented family owned business which is yet to acquire a strong position would not be able to survive the competition from global players. FDI will encourage the investment and employment in supply chain management. Joint ventures would solve the problem of capital constraints of existing organized retailers. Click here to sign up.
Storage is a major problem area and percent of the agri-products get wasted due to improper storage. But it is not the only factor that could help for the sustained growth. To analyse the data, different statistical tools have been applied with the help of tables, diagrams etc. However, Indian government should take care of its decision regarding this transformation and revolution along with safeguarding the health of the great Indian retail sector. The onus for ensuring compliance with this condition shall rest with the Indian entity carrying out single- brand product retail trading in India. Moreover, they are also opposing on the grounds that it will negatively affect the farming community. Improved technology in processing, grading, handling and packaging of goods Maintaining International Standard , electronic weighing, billing, barcode scanning could be a direct corollary of FDI.
There are 53 such cities. Loss of cultural values due to more influence of the other cultures. Log In Sign Up.
General Awareness Topic for MBA aspirants :FDI in Retail – Pros & Cons |
Many political parties are opposing the FDI in retail on the grounds that it eat away the employment. But it is not the only factor that could help for the sustained growth. It is widely believed that foreign investment is a key component in the growth process of any developing country. Since unorganized retail sector is one of the largest employment providers in the country, there are fears that it may eat away their employment.
They are trying to mislead the people of India for their own profits. Prime Minister of India in his address to the nation called the decision as a need of the economy. There will be good storage techniques and inxian techniques.
FDI will encourage the investment and employment in supply chain management. If they are able to convince hoon government to rewrite the laws after signing the deal to make more money – A la Reliance – then it is a bane. This means that they are of the view that Indian farmers will get good payment for their produces, without the agent in between the two parties. This means that they are of the view that foreign big retail will have their own market while local stores will continue with their available market without much change in it.
What is the scope of FDI in retail? Is it boon or bane? – Quora
As compared to foreign retailers having access to international funds at lower interest rates, the Indian small retailers suffering retzils- high lending rates may not be able to compete with them in maintaining lower prices and will be wiped out. In India retail is the sector which provides second highest employment after agriculture.
It usually involves participation in management, joint venture, transfer of technology and expertise. Consequently the Indian government UPA indefinitely suspended plans to reform the Indian retail sector.
Moreover, since 50 percent of the investment must come up in the back end infrastructure, supply chain will be improved which jndian result in reduction in post harvest loss of agriculture commodities.
FDI would probably lead to a more comprehensive integration of India into the worldwide market. Coming of organized retailing will benefit farmers in big way. Entry of large low cost onn and adoption of integrated supply chain management is likely to lower the price of commodities.
FDI in Retail – Pros & Cons
The cause of this slower rate of growth stems from the absence of an FDI encouraging policy in the Indian retail sector. Foreign players have been allowed to operate wholesale stores in partnership with local companies Walmart-Bharti, Tesco-Tata joint ventures.
bion This means that they liked to have foreign brands in India. To analyse the data, different statistical tools have been applied with the help of tables, diagrams etc. This means that they were having the fear of the foreign trade and were of the view that it can repeat the history where East India Company came to India in the past and captured India through the business.
With arguments to support dtudy sides of the debate, it is widely acknowledged that FDI can have some positive results on the economy, triggering a series of reactions that in the long run can lead to greater efficiency and improvement of living standards, apart from greater integration into the global economy.
Therefore, Walmart, Tesco may affect the domestic retailers in a big way.
There are two types of FDI: The sample profile was all the sections of society. What are the impacts of e-commerce in Indian economy? Is foreign direct investment bad or good for India’s economic growth? Today, you will read General Awareness Topic: Earlier, in DecemberIndian government removed the 51 percent cap on FDI into single-brand retail outlets in and opened the market fully to foreign investors by permitting percent foreign investment in this area.
The main sources of secondary data are journals, articles, newspapers, online data base of Indian economy, RBI policies and Bulletins, various economic surveys etc.