Fdi in Multi Brand Retail

3168 WordsFeb 22, 201213 Pages
Risk and Return Analysis of FDI in Multi Brand Retail in India Ms. Anita Nyati, Lecturer (Business Administration) ABSTRACT Foreign Direct Investment (FDI) is the outcome of the mutual interest of multinational firms and host countries. The current debatable issue in India is whether to permit FDI in Multi Brand Retail (MBR) or not. This paper provides a study of various aspects of FDI in Multi Brand Retail. Firstly the paper examines the present set up of retail sector in India. Further it focuses on the benefits of FDI which are expected in terms of better quality, better technology, better customer services and infrastructural development of India. The paper also discusses the major concerns / risk associated in form of unemployment…show more content…
• Foreign investor should be the owner of the brand.Proposal for FDI in Multi Brand Retail (MBR)- • 51% FDI permission in MB retail. Minimum investment of $100 million. ................... ............... .................. Foreign investors should be the owner of the brand. • Now the issue is whether opening up of FDI in MBR will provide opportunities or create problems. There may be both side views so this paper presents an analysis. Before we list the benefits of FDI, it would be better to assess the present set up of the retail sector. Present set up of Indian Retail Sector - • In reference of the farmer- India is a country of farmers where 60% of population is involved ins with agriculture. India It is the 2nd largest producer of fruits & and vegetables and 3rd largest of grains. but Indian farmers are not getting enough returns. There are many 3-4 middle meninter-midiateriesmediatories in betweenbetween farmers and ultimate consumers. Even as per an estimate so farmers get only 2010 -3020 % of the actual price we pay. Major part of their crop goes wastage due to not having better logistic facility,facility; their produce can’t reach to the Mandies. In many parts of the country due to not getting enough money through farm produce farmers have to commit suicides, they go on the way to crimes. Migratecrimes, migrate to metro cities and live measurably in slums. According to a
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