← All questionsGS3 · 2013 · Indian Economy ·Why FDI in Multi-brand Retail Stalled
QUESTION 10
GS3
5 marks

Though India allowed FDI in multi-brand retail through the joint venture route in September 2012, the FDI, even after a year, has not picked up. Discuss the reasons.

WRITE IN
4 min
100 words

What the examiner wants

Explain why FDI in multi-brand retail did not arrive after the 2012 opening.

DiscussExplain the different sides of the issue, use evidence, and finish with a balanced view.

Demand-wise check

  1. 1Tough conditions: minimum $100 million, 50% in back-end, 30% sourcing from small industries≈15 words
  2. 2State choice: only some states allowed it; stores limited to cities over 10 lakh population≈15 words
  3. 3Political uncertainty: opposition promised reversal≈15 words
  4. 4Business factors: land, infrastructure, APMC rules, global retailers' own troubles≈15 words

Open in about 20 words and close in about 20.

Answer plan

2012 policyConditionsPolitical and state-level hurdlesResultLater developments

Where marks usually go

  • Not naming the specific conditions
  • Ignoring state-level opt-in

Draw this

  • Checklist of conditions with hurdle each creates

Value addition

  • EventWalmart and Bharti ended their joint venture in October 2013.Walmart-Bharti, 2013
  • EventTesco-Trent was the first multi-brand retail FDI approved (2014).FIPB, 2014

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