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Showing posts from December, 2014

A perspective on the Impact of FDI on the Retail Sector

By Sibin Sabu, Research Intern Any investment made by a company or entity based in one country, into a company or entity based in another country may be called Foreign Direct Investment. As per OECD (Organization for Economic Co-operation and Development), the foreign investor must own at least 10% or more of the voting stock or ordinary shares of the investee company for it to be considered a FDI. Thus an FDI will give the investor a certain degree of influence over the management of the enterprise. Foreign investment in India is regulated by the RBI and the Foreign Investment Promotion Board (FIPB) under the Department of Economic Affairs, Ministry of Finance. FDI is not permitted in all sectors in India. The government has prohibited FDI in Atomic Energy, Lottery Business, Gambling and Betting, Business of Chit Fund etc. Retail Market in India in 2011 Any person or business selling goods to a consumer may be called a retailer. Therefore, wholesalers and suppliers are not