FDI in Indian Multibrand retail and its impact on Local Indian Retailers

*Pritesh Somani**Anand Kale

* Assistant Professor – Pragati College of Arts and Commerce.

Introduction

• The retail industry in India is the second largest employer with an estimated 35 million people.

• The union government has sanctioned 51% foreign direct investment in multi-brand Retail.

• The new policy will allow multi-brand foreign retailers to set up shop only in cities with a population of more than 10 lakhs.

Data Collection

• Data is been collected from both Primary as well as Secondary sources.

• Primary data was collected with a interaction from 100 retailers to know their views on Multibrand retail.

• Secondary data Collected from different books and journals.

Objectives

• To study the problems faced by FDI for local retailers.

• To understand the views of Local Retailers on FDI.

• To understand the changing trends of Indian Consumer.

Why retailers want to come to India ?

• ECONOMIC GROWTH• DEMOGRAPHICS• URBANIZATION

Problems of FDI for local Retailers

• Unsound Position.• Global players will affect our balance of

Payment.• High cost of borrowing a big problem for

Indian retailers.• Lack of employment opportunities.

Data InterpretationDo you think FDI will affect your business ?

40%

60%

%

YesNo

Do you think with the entry of Big Retailers in Indian Market, your business will be affected?

20%

75%

5%

%

Yes No Can't say

Conclusion

• Domestic retailers should be given a time frame of 5 to 10 years so as they may consolidate their position as compared to foreign retailers.

• Foreign players should not be allowed to trade in certain sensitive products like arms and ammunition, military equipment, etc.

• With economic slowdown behind us, the time seems just right to expand the horizons, and realize the potential

• FDI in retailing would surely be a gain to India and it would also help India in becoming 'developed country'