The impact of Foreign Direct Investment on the retail industry in India

Type :

Theses

Pages :

102 pages

Format :

.doc

Published date :

05/26/2009

Category :

Economics & finance

Sub category :

Finance

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Summary :

Introduction
Objective of the study
Overview of the literature and organization of the study
India at a glance
The Indian economy
1. The highlights of the Indian economy
2. Snap shot of the Indian economy
The growth of consumer market in India
The young consumer
1. High income
2. Card power
3. Luxury brands
The Indian consumer
Foreign investment
1. Foreign portfolio investment (FPI)
2. Foreign direct investment (FDI)
3. Foreign direct investor
4. Foreign investment enterprise
Subsidiaries, associates and branches
Foreign direct investment: Forms of investments
The forbidden territories
1. Foreign investment through GDR's
2. Use of GDR's
Global trends: Rising FDI inflows
1. Trends, patterns and characteristics
FDI inflows, global and by group of economies, 1980?2005
Total net resource flows to developing countries, by Type of flow, 1990-2005
Sectoral break down of cross-border M & A sales (1987-2005) percent
Current trends of FDI in India
Reasons to invest in India
Policy framework: Industrial policy
Foreign investment policy
1. Regulation and procedures
2. Automatic approval route and FIPB route
3. New ventures
Foreign investment policy for trading activities
Definition of retailing
Segments of retailing in India
Different retail formats
Retailing at a glance in India
The growth drivers
Investment opportunities
Major formats of in-store retailing
Online retailing and internet retailing
Top retailers in India
1. The Tata group
2. K Raheja corp
3. Lifestyle international pvt. ltd
4. Piramyd retail ltd
5. Nilgiri's, Subhiksha, Trinethra, Vishal retail group, Adani group, Ebony retail holdings ltd and Reliance retail
Opportunities in Indian retail
Data, analysis and interpretation
References

Abstract

Retailing is the largest private industry in india and second largest employer after agriculture. Retailers not only provide consumers with a wide variety of products, but also a wide range of complementary services such as assurance of products delivery which can lead to more informed choice and greater convenience in shopping. They also provide products with much needed and information on consumer demand pattern. Productivity and efficiency in retail operations lower price levels and reduce distortions in the price structure. Through backward and forward linkages, performance of retailing service affects the performance of interlinked sectors such as tourism, recreational and culture services, manufacturing of consumer goods, agro food processing industries etc.

Retailing sector in india has undergone significant transformation in the past 10 years. The sector contributes to around 10 percent of GDP and 6-7 percent of employment. With over 15 million retail outlets, india has the highest retail outlet density in the world. This sector witnessed significant developments in the past 10 years from small unorganized family-owned retail formats to organized retailing. Traditionally Indian retail sector has been characterized by the presence of a large no of small-unorganized retailers. However, in the past decade there has been development of organization retailing, which has encouraged large private sector players to invest in this sector. Liberalization of the economy, rise in per capita income and growing consumerism have encouraged large business houses and manufactures to setup retail formats, real estate companies and venture capitalist are investing in retail infrastructure. Many foreign retailers have also entered the market through different routes such as wholesale, cash-and carry, local manufacturing, franchising, test marketing etc. with the growth in organized retailing, unorganized retailers are fast changing their business models and implementing new technologies and modern accounting practice to face competition.