The document discusses the issue of allowing foreign direct investment (FDI) in retail trade in India. It summarizes that retail trade provides significant employment in India, especially for those who cannot find jobs elsewhere. However, if large FDI retailers enter the market, they may displace many small retail shops and traders, leaving many unemployed. The document urges the government to carefully consider the experience of other countries and prevent large-scale unemployment before approving FDI in retail trade.

1. PRESENTED TO:
B.K.BAL SIR
PALLAVI MAM
PRESENTED BY:
RAJAN SINGH
SAQUIB SALIM
SANATAN SASANY
SABYASACHI CHAND

2. About FDI
 Foreign direct investment (FDI) is direct
investment by a company in production located in
another country either by buying a company in the
country or by expanding operations of an existing
business in the country.

3. RETAIL TRADE :
BACKBONE OF ECONOMY
 Retail trade is world’s oldest business.
 Retail trade consists of sale of goods & services to consumers
for their personal, family or household use.
 Based on turnover and volume, retail trade is worlds biggest
economic activity.
In India by investing nominal Capital a person can start retail
business.
In India Retail shops are generally owned and run by family.
The whole family gets self employed.

4. Trader done
 Traders give employment to that neglected section of
society who do not get employment any where.
 Traders take care of entire family of his employees.
 During famine, floods, earthquakes tsunami and other
natural calamities, the traders have always come out
openly to extend full help to Govt.
 In all social activities & establishment of
schools, colleges, hospitals mandir, masjid etc. traders
have contributed.
 Indian traders have always seen customer satisfaction
above personal profit.

5. PRESENT CONDITION OF TRADERS
Fringe Benefit Tax
VAT
INEFFICIENT
LICENCES & PERMITS
INDUSTRIAL DISPUTE ACT
LABOURS
SHOP & ESTABLISHMENT ACT PREVENTION OF BLOCK MARKETING ACT
COSUMER PROTECTION ACT ANTI HOARDING & PROFEELING ACT
WEIGHT & MEASUREMENT ACT MONEY LENDING ACT
PACKAGING ACT PRODEND FUND ACT
PREVENTION OF FOOD ADULTRATION ACT MINIMUM WAGES ACT
ESI ACT
GRATUITY ACT
BONUS ACT
ENTRY TAX
SERVICE TAX
FDI in Retail Trade
ANTI SOCAL ELEMENTS
OCTROI
WATER TAX
CENTRAL
EXCISE
POLITICIAL INTERFERANCE
PURCHASE TAX
SALES TAX INCOME TAX
POOR MARKET
CONDITION POWER PROBLEM
Cash Transaction Tax
INSPECTOR RAJ STAMP DUTY &
Quarterly ‘C’ Form
WELTH TAX
HIGH BANK
CHARGES PROFESSIONAL TAX
New Naka Complex
ESSENTIAL COMMODITIES ACT

6. IT WAS THE CRITERIA FOR FDI
Finance Minister and Prime Minister Dr. Manmohan Singhji
referred to certain criteria for allowing Foreign Direct
Investment. These were:
i. Establishment of basic industries require huge capital and
advanced sophisticated technology.
ii. Infrastructure projects like electricity generation, road
,building etc.
iii. Projects which would generate employment.

7. What will
HAPPEN WITH FDI IN RETAIL TRADE
 Throughout the world it is known fact that huge
investment is not required to open a retail shop.
 Investment is required to build infrastructure for
shop, sophisticated technology is not required in
retail trade.
 Small Retail shops provide more employment
then large chain of Retail stores.
 There is no gestation period. Hence business starts
from day one.
 Instead of developing under developed areas
these stores capture prime commercial property
in cities.

8. AFTER M.N.C. /FDI TAKE OVER
 ALL WORKS IN FARM WILL BE DONE BY
MACHINE UNDER CORPORATE FARMING
 AUTOMATIC TRANSFER AND PACKING BY
MACHINES.
 SALE TO CUSTOMERS THROUGH CHAIN OF
DEPARTMENTAL STORES.
 LARGE NUMBER OF SELF EMPLOYED TO
BECOME UNEMPLOYED.

9. WHAT WILL HAPPEN TO LOCAL RETAIL
TRADE
 No of Retail outlets Between 1981-99 in United
Kingdom came down from 56862 to 25800.
 Between 1970-80 in Europe about 4 lakhs Retail
shops were closed.
 Competition shall be limited to Big Retail Houses
 In the year 2000 Five Big Fast food companies
captured following percent market share :

10. WHAT HAPPENED IN OTHER ASIAN COUNTRIES
 Other countries are also unhappy. Many countries have
started taking precautions.
 Indonesia and Malaysia have established zones within
which these foreigners can do trade.
 In Japan Big companies have to discuss with small
traders. There is Zoning system also.
 There is wide discontent amongst shopkeepers & people
in the countries to which these store belong.
 The city counselor of California & Chicago have refused
to allow opening of new shops to WALMART.

11. NOW ITS TURN OF INDIA
 The tough stand taken till recently by Central
Govt., Foreign Retail Traders could not enter India.
 It is unfortunate that Central Cabinet has given approval
to FDI in Retail Trade.
 Shift of Major retail trade to these big companies will
render small traders & their employees unemployed.
 Many companies with the help of contract farming will sell
goods produced in farms directly from their chain of
stores.
 These companies will keep only graduates and above in
their employment. There will be no scope for
employment to under graduate and others.

12. CONTRACT FARMING
COLLECTION OF TO OWN FACTORY
AGRICALTURE PRODUCTS
TO CUSTOMER
TO OWN DEPT. STORE

13. REQUEST TO
STOP FDI IN RETAIL TRADE
 If Domestic Retail Trade is allowed by Big MNC’s
etc., there will be Large Scale Unemployment.
 A new class of unemployed called “Unemployed
Traders” will join the existing force of unemployed
persons.
 These companies will sell internationally procured
products. Domestic Industry will suffer.
 Everybody knows how Big Fish eats away small
fishes.
 Keeping the experience of other countries in
mind, Govt. should not take any such decision for
which the whole country and coming generation
will have to suffer.

14. SELF EMPLOYMENT IN INDIA
 India has huge force of unemployed persons.
 Govt. has failed to generate need based employment..
 Majority of people in India are self employed.
 The Major area of self employment is Agriculture and
Retail Trade .
 The farmers problems were not addressed timely. They
are committing suicide.

15. WHAT SHOULD GOVT. DO
 Govt. should identify the weakness of present retail
trade.
 Govt. should specify the areas where customers are not
being served properly.
 Govt. should specify what it expects from retail trade
that is not being met presently.
 Govt. should publicize the sector / persons who have
demanded FDI in Retail Trade.
 Govt. should come out with white paper on FDI in
Retail Trade specifying the picture after 25 years and
50 years.

16. INDIA : MY COUNTRY
 Don’t see India as population of one hundred forty-five
crore mouths to feed.
 See it as a market of one hundred forty-five crore
consumers with,
 Two hundred ninety crore eyes to watch your products
and,
 Two hundred ninety crores hands to buy your products.
 Worlds largest emerging retail market : who will conquer
it :?..................... we ………………