Arguments in Favour of FDI in Retailing

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18 Questions

What is one key advantage of FDI in the retail sector related to the supply chain?

It leads to less wastage in agriculture/business due to improved distribution efficiency.

How does FDI in retail impact pricing for consumers?

It leads to smaller price differences between producer and consumer prices due to direct distribution and higher sales volumes.

What is one benefit of FDI in retail related to employment?

It creates better employment opportunities in the retail sector.

How does the organized retail sector aided by FDI impact pricing strategies?

It enables retailers to offer reasonable/better prices to consumers.

What advantage does FDI in retail provide to manufacturers/producers?

It helps improve the sales volumes for manufacturers/producers.

What type of customer acquisition strategies does the retail sector employ with FDI?

It enables retailers to offer creative/structured promotional offers to attract new customers.

What is one disadvantage for Indian retailers due to the presence of FDI in retail?

Limited scope for Indian retailers

How does the presence of foreign brands affect customer preference in retail?

More preference for foreign brands

What challenge do Indian retailers face in terms of access to the Indian market due to FDI?

Ease of Access to Indian markets to foreigners

How do multinational dealers impact demand in foreign markets?

More incentives to dealers by foreign brands

What is one way foreign retailers affect the use of resources and focus in the market?

Repetitive advertising by foreign retailers

How do foreign retailers influence customer orientation towards products?

Competitive after sales service by foreign retailers

What are the key reasons for the prominence of organised retailers in urban India?

The key reasons for the prominence of organised retailers in urban India are the limited business opportunities in the interior areas and the greater market size and preference for convenience in metro areas.

What is the current share of the retail sector in India's GDP and employment?

The retail sector provides more than 10% of India's GDP and is further creating an increase in employment opportunities in the market.

What is the current growth rate of the organised retail sector in India?

The overall share of the organised retail sector in India is increasing at a rate of more than 20%, which is a very important activity for developing better business opportunities.

How has the introduction of FDI in retail impacted the retail sector in India?

The introduction of FDI in retail, with 51% in multi-brand and 100% in single-brand retail, is a significant step to increase the share of the organised retail sector in India.

How are the unorganised retailers in India adopting technology to improve their operations?

The unorganised retailers in India are using the latest technology for inventory management, weighing, and billing, among other functions.

What are the key factors driving the continuous rise in retail sector demand in India?

The continuous rise in retail sector demand in India is leading to improvements in retail operations, and an increasing number of retailers have realised better opportunities for creating more customers.

Explore the positive aspects of Foreign Direct Investment (FDI) in the retail sector, such as reduced wastage in business, decreased price differences between producers and consumers, and increased efficiency in distribution. Understand how FDI can enhance market opportunities and improve the overall retail landscape.

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