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SWOT ANALYSIS ON FDI IN

RETAIL SECTOR

BYNarendrasingh Patankar

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Present Retail Sector in India

Like every other eono!y" the retai# setor is a#soone o$ the !ost r%ia# and e&tre!e#y 'otentia#

setor o$ the Indian Eono!y( As o$ no)" theretai# setor in India ao%nts $or a''ro&i!ate#y**+*,- o$ the .DP )ith /0- gro)th rate in 'astthree years( The Indian retai# !arket is one o$

the to' , retai# !arkets in the )or#d and e!'#oys1- o$ the tota# Indian )ork+$ore

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Current FDI Policy in respect of

Retail Sector in India

2( FDI %' to 233- $or ash and arry )ho#esa#etrading and e&'ort trading a##o)ed %nder thea%to!ati ro%te(

4( FDI %' to ,2- )ith 'rior .overn!ent a''rova#$or retai# trade o$ 5Sing#e Brand6 'rod%ts(7no) 233- a##o)ed vide noti$iation dated2289an84324:(

*( FDI is not 'er!itted in ;%#ti Brand Retai#ing inIndia

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PROSPECTED changes in FDI

Policy for Retail Sector in India

2( India )i## a##o) $oreign diret invest!ento$ %' to ,2 'er ent in

4( Sing#e =rand retai#ers" s%h as A''#e andIkea" an o)n 233 'erent o$ their Indianstores" %' $ro! the 'revio%s a' o$ ,2'erent( This has =een a##o)ed #ate#y on2289an84324(

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The bill

2( The retai#ers 7=oth sing#e+=rand and !%#ti+=rand: )i##have to so%re at #east *3- o$ their goods $ro! s!a##and !edi%! si?ed Indian s%''#iers(

4( A## retai# stores an o'en %' their o'erations in having'o'%#ation over 2 !i##ion( O%t o$ a''ro&i!ate#y 1@*,ities and to)ns in India" ,, ities satis$y s%h riteria(

*(;%#ti+=rand retai#ers !%st =ring a !ini!%! invest!ent o$

S 233 !i##ions(

/( The o'ening o$ retai# o!'etition 7'o#iy: )i## =e )ithinthe 'ara!eters o$ state #a)s and reg%#ations(

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SWOT AA!"SIS

Strengths

2( ;aor ontri=%tor to the .DP4( igh gro)th rate

*( igh 'otentia#

/( igh e!'#oy!ent generator

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Wea#nesses $li%itations&'

2( Lak o$ Co!'etition

4( igh#y %norganised*( Lo) 'rod%tivity

/( Shortage o$ ta#ented 'ro$essiona#s

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Opportunities $benefits&'

2( There )i## =e !ore organi?ation in the setor(

4( ea#thy o!'etition )i## =e =oosted and their

)i## =e an hek on the 'ries 7in$#ation:*( Create trans'areny in the syste!

/( G%a#ity Contro# and ontro# over #eakage and)astage

,( eavy $#o) o$ $oreign a'ita# )i## he#' in=%i#ding %' the in$rastr%t%re $or the gro)ing'o'%#ation

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Threats $dra(bac#s&'

2( Po#itia# sit%ation

4( .#o=a# Eono!y Stat%s

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