Posts Tagged ‘Investment’
Foreign Direct Investment in Retailing in India ? Its Emergence & Prospects
Abstract
In recent years the destination sectors in FDI have became more varied. FDI inflows have shifted from infrastructure, natural resources and export driven manufacturing to other areas such as retailing, tourism, construction and off shore services. A World Bank study showed that cumulative FDI inflows to the retail sector in the 20 largest developing countries amounted to US$ 45 billion in 1998-2002 (about 7 per cent of the total of these countries). The study showed that after liberalization; countries such as Brazil, Poland and Thailand have received significant FDI in retailing.
In spite of the recent developments in retailing and its immense contribution to the economy, retailing continues to be are the least evolved industries and the growth of organised retailing in India has been much slower as compared to rest of the world. Over a period of 10 years, the show of organised retailing in total retailing has grown from 10 per cent to 40 percent in Brazil and 20 percent in China, while in India it is only 2 per cent (between 1995-2005). One important reason for this is that retailing is one of the few sectors where foreign direct investment is not allowed. Within the country, there have been protests by trading associations and other stakeholders against allowing FDI in retailing. On the other hand, the growing market has attracted foreign investors and India has been portrayed as an important investment destination for the global retail chains. The present paper attempts to analyze the reason why foreign retailers are interested in India, the strategies they are adopting to enter India and there prospects in India
Mobile Phone Deals : Cost Effective Investment
These cost effective phones have high-end features along with various offers provided by their service providers. These handsets have stunning looks which come absolutely free of cost. These offers along with the amiable look of these handsets have attracted a substantial part of mobile users from all standards of society.
Starting from the very first Nokia mobile to the latest high-end multifunctional hand sets, mobile phone deals have evolved unpredictably. Earlier mobiles only included basic features like call making and call receiving. Mobiles were much more expensive and were considered to be a luxury product. Most people thought that handsets were baseless investments because the same calling can be done from landlines at much more cheaper rates. The main reason for this was, mobile call rates had unacceptably high pulse rates. Hence, it was not a profitable investment for users compared to the landlines. However, the sudden drop in handset prices and the promotion of multiple offers along with high-tech innovative features convinced people about the utility of mobiles. Various mobile phone deals have also stimulated customers to buy mobiles. Hence, unlike the 20th century, today’s latest connections are cheap and caters to all standards of people in the society. The most common phone deal is the contract deal which have already gained prevalence among users.