FDI in India

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INTRODUCTION:

INTRODUCTION 1 FOREIGN DIRECT INVESTMENT IN INDIAN RETAILING 3/5/2011 Pradip Singh Assistant Professor SAMS Varanasi

DEFINITION OF RETAILING:

DEFINITION OF RETAILING Retailing is defined as all activities involved in selling goods or services directly to final consumers for their personal, non-business use by shops, market, door-to-door selling, mail order or over the internet, where the buyer intends to consume the product through personal, family or household dues. 2 3/5/2011

TWO SEGMENTS OR RETAILING:

TWO SEGMENTS OR RETAILING 1. ORGANISED RETAILING 2. UNORGANISED RETAILING 3 3/5/2011

ORGANISED RETAILING:

ORGANISED RETAILING Any retail outlet chain(and not a one shop outlet)which is professionally managed(even if it is family run),has accounting transparency and organised supply chain management with centralised quality control and sourcing can be termed as organised retailing in India. 4 3/5/2011

UNORGANISED RETAILING:

UNORGANISED RETAILING Any retail outlet which is run locally by the owner or the caretaker of the shop. such outlet lack technical and accounting standardisation. The supply chain and the sourcing are also done locally to meet the local needs. 5 3/5/2011

Indian Retail Scenario:

Indian Retail Scenario 3/5/2011 6 Total Private Consumption Expenditure in India – 375 Billion USD Retail Sale – 205 Billion USD (55%) Organized Retail – 6.2 Billion USD (3%) Retailing – 35% of GDP Outlet Estimates – Over 12 Million Format – Only 4% larger than 500 sq.ft. Second Largest Employer after Agriculture

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