FDI in multi brand retail: Find Latest Stories, Special Reports, News & Pictures See great value in omni-channel retail with Flipkart acquisition: Walmart India. % FDI in single brand retailing; Multi brand retailing still restricted. On 7 th Dec India allowed 51% FDI in Multi Brand Retail. The Hindu Business Line by K.T. Chandy Tax Partner EY. With a population of nearly billion, India is a dream destination for global retailers. But their stake in.

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Essay writing is a tool to test MBA aspirant on assessing overall communication and personality so it is also equally important and crucial component of MBA selection process. Although few big local players have tried to enter this segment in multibraand to expand their business and one such player is Reliance.

One of the major global players is Walmart. Essay April 05, April 05, FDI in multi brand retail sector of India and its Effects. A well known international management consultant A. Both the upper and lower income indja in India prefer to buy branded goods from standard showrooms.

The reality is that both the organised retailers and kiriana stores exist together, in fact the organised retailers compete with the other organised retailers. Most of the organised retailers have become better than before due to the competition and their expenses have gone up especially the amount spend on advertising.

FDI in India – FDI in single brand, multi-brand retail and e-commerce

India however, took safer and slower steps towards FDI. This is also the prime reason why the two fastest developing and growing economies ib the world in last decade have been Brazil and China. When the government of India allowed FDI in retail the entire country was stunned.


rerail Opposition parties and few chief ministers have stood firm against this decision because they feel that if this is implemented then the small retailers will lose their market especially rettail unorganised retail sector which comprise of the local kirana stores. Some of these stores even provide credit to their regular customers, and now the trend of home delivery has taken apace so these stores even provide home delivery services as well.

These small retail stores serve as a great medium of promotion for FMCG companies as they can reach the ultimate consumer through such retailers. Since the year when the organised retail entered India, it has come a long way. It involved lot of investment and creativity but it has managed to reach newer heights. If we talk about the pros and cons of FDI in retail business sector in India then the first and the foremost advantage is that it serves indai an aid to make investments which would yield long-term profits.

FDI apart from its capital benefits indoa helps in reducing multlbrand as it increases job opportunities for the people.

When companies from other countries will start tdi in India then it would lead to an exchange of skill sets and much better production levels.

Not only tha,t there is an exchange of technologies as well whenever any two countries come together to work, for eg: Along with that wal-mart will also bring its retail expertise to India so that they can attract consumers.

FDI will also benefit the farmers in India as the multi brand retailers who will operate here will be purchasing the goods directly from retaul farmers which means that the demand will rise and farmers will be able to sell their products at better and fairer price.


The foreign retailers will be purchasing directly from the farmers as they will eliminate the middlemen which will give them more margins to play with. The ultimate consumer will also be benefitted as they will have more options to choose from, they will be able to buy better quality and variety of products at much more reasonable price.

This is the reason why many politicians believe that the local kirana stores will lose their business but reality is different. The argument which has been put across by multivrand opposition parties that the kirana stores will run out of business once the FDI is permitted is a big myth.

Together they have to feed one billion people, dress and house them apart from that there is a huge potential at the bottom of pyramid. The biggest benefit which the Indian economy will gain if this FDI is completed is that of cash infusion.

Not only this, it would also provide lot of employment, once the foreign stores are operational here in India then the workforce will also be hired from here.

FDI in Multi Brand Retail Sector India

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