Fdi in Retail

In: Business and Management

Submitted By UshaKc
Words 9475
Pages 38
Contents

Introduction 3 Literature review 4 Research methodology 9 Analysis 11 Case study: Tata’s Croma 16 Findings 20 FDI in Retail in India 21 Growth drivers in India for retail sector 22 Discussion 23 FDI in INDIA SECTOR WISE 23 Conclusion 25 Bibliography 27

Introduction

Foreign Direct Investment (FDI) is fund flow (inflow/outflow) between the countries wherein one gains benefit from their investment whereas another can exploit the opportunity to enhance the productivity and find out better position through performance.
Foreign Direct Investment (FDI) is the flow of funds between countries wherein one country reaps benefits from the investments and the other can make the most of the opportunity to improve the productivity and stabilize their position through performance. The Dictionary of Economics has defined FDI as investment in an overseas country through the acquisition of a company there of an operation on a new site. In other words, the capital inflows from abroad that is invested in to improve the production capability of the economy.

Two forms of FDI: * Inward FDI * Outward FDI
FDI is an important factor for growth and development in both developed and developing countries. FDI has seen a spectacular growth in the last two decades globally. Policies are formulated in order to accelerate inward flows. FDI provides good opportunities and benefits for both the host and home countries in terms of investments. The “home” countries benefit from the markets opened by industrial growth and the “host” countries obtain managerial and technological skills along with domestic savings and foreign exchange. Moreover, the lack of capital, financial, technology, entrepreneurship, access to markets skills and practices have prompted developing nations to accept FDI as a viable option.

The Government of India (GOI) with…...

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