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India is one of the oldest civilizations and the second most populous country with more than 1.22 billion people. A country with a high percentage of young population – 47% of the population is less than 25 years of age. The country has been posting a positive GDP number successively as compared to most of the developed economies who continue to suffer from the recessionary trends since 2008. The country offers many opportunities for investment and growth. The sheer size of the market is mouth watering for the Multi-national companies (MNC). With the economic development, the income levels of people are increasing and the number of middle class families is on the rise offering a very lucrative market for vendors. There is an ever increasing pressure on the government to open up many sectors for FDI like the multi-brand retailing and create a friendly environment for increasing investment in sectors like infrastructure. Though the government is facing many pressure groups within and outside the parliament against the policy initiatives, the hold-up can not continue for too long. The government will have to bite the bullet and face the consequences. This article highlights some of the opportunities available for investment to be exploited by local business entities or by the MNCs.
IOSR Journal of Business and Management, 2012
Necessity always necessitates searching for the alternatives" In developing countries like India, because of low per capita income there would be always scarcity of capital. As a consequence, underutilization of natural resources, unemployment and underemployment, low productivity & technological undergrowth, shortage of skilled labour, economical imbalance and unhealthy balance of payments become more prominent. Countries continuously in need of investment for their development especially in emerging countries like India. To be frank, the source of investment may be obtained through public or private funding, but the total finance required would generally be above the capital which may be available within the country's boundaries. Foreign Direct Investment (FDI), therefore, becomes an important financial source for capital projects which would be vital for development of emerging countries. As a matter of fact, the intensity of flow of finance in the form of FDI would generally depend upon the policies and regulations framed by Government to attract Foreign Direct investment (FDI). The Retail Industry is the paramount sector of economy which comprises individuals, stores, commercial complexes, agencies, companies, and organizations, etc., involved in the business of merchandizing diverse finished products to the end-users directly and indirectly. Products or services of the retail sector are the finished final products or services of all sectors of commerce and play an important role in economy of a country. The Retail sector of India is gigantic and has huge prospective for growth and development as the majority of its elements are unorganized. Empirical study has shown that some emerging countries exposed to Foreign Direct investment (FDI) have a higher socioeconomic growth rate than those that have not exposed to it. Thus, FDI becomes a vital energized tool for growth of economy for India.
2014
India being second most-populous country has immense scope for retail expansion as along with time urbanization and consumerism has also been increasing. Further, India's GDP has also been growing at fast rate as it continued to be the second fastest growing economy in the world after China and as the income of the country increases, demand for goods also increases because there is positive relation between demand and income. Initially India was conservative regarding FDI; it imposed restriction on foreign companies to limit their share in equity capital of their Indian subsidiaries but over the time Government of India gradually liberalized foreign investment in various sectors. Recently in 2011 India permitted 100% FDI in single brand retail and in 2012, 51% FDI permitted in multi brand. In this paper we are analyzing the impact of such decision on various sectors like food retail sector, farmers, traditional & employment and food inflation.
SSRN Electronic Journal, 2015
According to the Investment Commission of India, the retail sector is expected to grow almost three times its current levels to $660 billion by 2015. Investments are sought by Indian Retailers also to get necessary push for evolution of organized retailing in India, which has been much slower as compared to rest of the world. This is significant to mention that despite of the ongoing wave of incessant liberalization and globalization the absence of political will to attract advanced technology and to adopt new retail format is holding retail revolution. FDI in Indian Economy is present since ages, though it is revealed from the chart that there are some states and cities where FDI inflows are larger in comparison of rest of the India. Maharashtra, Tamilnadu, Delhi, Karnataka and Andhra Pradesh are attracting two third of the total investment being the main centers of IT development in last 15 years. Moreover, on city to city basis, it is revealed that there is huge segregation in the inflows as more than 50 percent inflows are dropping in few cities Bangloru, Mumbai and National Capital Region (NCR).
IGI Global eBooks, 2020
Eco-Pulse, 2012
The paper analyses the loss to economy cause by large scale liberalisation of trade By allowing investment by corporate giants. it analyses some of the key areas where it adversely affects local producers and sellers. Against the McDonaldian culture of anytime, anywhere packages or processed food, it underlines the importance of indigenous products and the need to sustain economy in touch with the marginal farmers and all-sustaining nature.
SSRN Electronic Journal, 2012
Foreign direct investment (FDI) plays an important role in India's growth dynamics. There are several examples of the benefits of FDI in India. FDI in the retail sector can expand markets by reducing transaction and transformation costs of business through adoption of advanced supply chain and benefit consumers, and suppliers (farmers). This also can result in net gains in employment at the aggregate level. This paper brings forth a few conceptual issues and analysis of qualitative information, data and stylized facts on these issues.
International Journal of Economics and Finance, 2016
India being second most-populous country has immense scope for retail expansion as along with time urbanization and consumerism has also been increasing. Initially India was conservative regarding FDI; it imposed restriction on foreign companies to limit their share in equity capital of their Indian subsidiaries but over the time Government of India gradually liberalized foreign investment in various sectors. Recently in 2011 India permitted 100% FDI in single brand retail and in 2012, 51% FDI permitted in multi brand. Even though organized retail sector in India is at the infant stage, India has today become a budding target for FDI. India today offers the most persuasive investment opportunity for mass merchants and food retailers looking to expand overseas as Indian economy is growing at a rapid pace with consumers having high purchasing power. FDI is a sturdy source for the intensification of retailing and will create enormous opportunities for innovation in retail sector in Ind...
Foreign Direct Investment inflows play a predominant role in the economic development developing countries like India. Lots of efforts are made by the country through liberalized strategy to attract Foreign Direct Investments. India has withdrawn the restrictions on Foreign Direct Investments in order to enhance capital flow for developing sectors in the country. Recently the retail sector has also been made open for FDI inflow to the extent of 50% in multi brand outlets. The service sector of India is attracting highest amount of FDI in India. It is estimated that service sector alone is attracting 21% of total FDI inflow. India the second largest country in consumer market and 10 th largest country in the world in consistent economic growth and 4 th largest economy in terms of purchase power parity and the tenth most industrialized country in the world. The growth of Indian economy can be noticed after 1994 when it has adopted liberalized policy for FDI inflow. There are many opportunities and also challenges of FDI inflow for Indian Economy.
Journal of Management and Research, 2014
The report analyses the concept of Foreign Direct Investment in India and studies it in various contexts like growth and policies implemented after the independence. With the economic direction of gradual increase in the liberalization and globalization, several factors influencing the patterns for the investment in India have also been discussed in the paper. The report entails the advantages and limits of FDI, main sectors with Equity/Route limit in India & factors affecting FDI with respect to Indian Economy. The paper purports to explain the purpose of studying this topic and gives insights on different proposals of encouraging the flow of foreign capital through FDI & analyzing the largest sectors of the investments in India. We have also performed case studies on organization such as PepsiCo, to justify our assumptions and to clarify the concepts.
ISAS Insights, 2020
As a possible fall out of the COVID-19 pandemic crisis, India has the opportunity to attract foreign direct investment inflows from large companies seeking to diversify their investment to mitigate risks. It has set up an empowered group of secretaries to engage in conversation with these companies and provide all possible facilities to them to ensure ease of setting up business. In addition, some incentive schemes have been announced in sectors where the government feels India has an advantage such as mobiles, electronics and medical equipment. However, mere incentives may not be sufficient to attract these investors. It will require a whole ecosystem which is facilitative and not overbearing. China had, over the years, become the most preferred destination for international companies to set up shop and supply their products to global markets. The excellent infrastructure, abundance of cheap and professional labour, ease of doing business facilities, a strong business ecosystem, low taxes, not-so-strict regulatory compliances and competitive currency practices are the main reasons for the attraction towards China. As a consequence, China became the largest recipient of foreign direct investment (FDI) in Asia. 1
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