FDI in multi-brand retail.

what is FDI? 

Foreign direct investment, investment by a company in a country other than that in which the company is based.

What does 51% FDI in multi-brand retail mean?

Government has decided to allow 51% FDI in Multi-brand retails.

What are the per-conditions:

• Minimum investment of $100 million.
• 50% of the investment is to be in backed infrastructure development. 

• 30% of all raw material has be procured from India's small and medium industries.
• Permission to set up malls only in cities with a minimum population of 10 lakh.
• Government has the first right to procure material from the farmers.
• Products should be sold under the same brand internationally.
• Foreign investor should be the owner of the brand. 

 What is the difference between FDI and FII?

• FDI is an investment that a parent company makes in a foreign country. On the contrary, FII is an      investment made by an investor in the markets of a foreign nation.

• FII can enter the stock market easily and also withdraw from it easily. But FDI cannot enter and exit that easily.
• Foreign Direct Investment targets a specific enterprise while FII targets the capitak markets of foreign country. 
• The Foreign Direct Investment is considered to be more stable than Foreign Institutional Investor 
• FDI flows into the primary market, the FII flows into secondary market. 
• FIIs are short-term investments, the FDI's are long term. 

 Advantages

• Increase economic growth by dealing with different international products
• 1 million (1 Crore) employment will create in three years - UPA Government
• Billion dollars will be invested in Indian market
• Spread import and export business in different countries
• Agriculture related people will get good price of their goods

Disadvantages

• Will affect 50 million merchants in India
• Profit distribution, investment ratios are not fixed
• An economically backward class person suffers from price raise
• Retailer faces loss in business
• Market places are situated too far which increases traveling expenses
• Workers safety and policies are not mentioned clearly
• Inflation may be increased
• Again India become slaves because of FDI in retail sector.