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FDI in India: Single-brand and Multi-brand Retail
Abstract
This case discusses the Foreign Direct Investment (FDI) reforms in the Retail sector in India. In 2015, changes made in the retail sector aimed at further relaxing and simplifying the process of foreign investment in the country. The case talks about the history of FDI in retail followed by the first change in the retail sector in 1997, when FDI up to 100% was allowed under the government route in cash and carry (wholesale) trade. The impact of the change was positive and led to series of reforms over the years. The FDI changes in 2012 in single brand and multi-brand were termed as major changes in the retail industry. These reforms led to a transition in the retail industry in India. While the 1990s were dominated by mom-and-pop stores, various international brands like Gap, Zara, Fendi, Giorgio Armani, Versace, DKNY, Diesel, etc. had established a presence in the country by 2016. |
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Issues
The case is structured to achieve the following teaching objectives:
- Understand the developments in the Indian retail sector.
- Learn about the FDI reforms in single-brand retail and multi-brand retail.
- Understand the issues involved with FDI in multi brand retail.
| Contents |
| INTRODUCTION |
| BACKGROUND OF FDI IN INDIA |
| FDI IN RETAIL (1990-2006) |
| FDI IN RETAIL (2012-2015) |
| FDI POLICY 2015 |
| EXHIBITS |
Keywords
Foreign direct investment, Single brand retail, Multi-brand retail, Inflows, Multinational brands, e-commerce, Government route, Automatic route, Government, Indian economy, FDI reforms, Religious Tourism, Environment Conservation, Poverty Alleviation, Leadership
