Seminar @ Kakatiya University, Warangal

by ayanendu1

Sponsored by UGC under Special Assistance Programme (SAP-DRS-II level) in Economics during 9th & 10th March, 2013

Chief Patron
Prof. B. Venkat Rathnam
Vice-Chancellor, KU

Seminar Director
Prof. G. Rajaiah
Co-ordinator, (SAP-DRS-II)

Prof. G. Bhaskar
Dy. Co-Ordinator, (SAP-DRS-II)

Prof. C. Renuka, Head

Organized by
Department of Economics
Kakatiya University, Warangal (AP)


FDI plays an important role in the transmission of capital and technology across home and host countries. Benefits from FDI inflows are expected to be positive, although not automatic. A facilitating policy regime; with minimal interventions may be ideal to maximize the benefits of FDI inflows. It is not possible to reach a decisive value judgment on whether FDI is good or bad for the developing country/ host economy. Even more difficult is the question of whether it brings about equity along with growth effects. FDI might enter a labour-abundant country with capital intensive technologies, however, if the labour laws are not flexible, this would have a relatively small impact on employment generation. On the other hand, the entry of FDI in labour intensive firms would have a positive impact on equity and poverty reduction if the FDI enabled firms choose to locate close to suburban areas.

FDI in retail in India has been opened in a systematic manner. As per the existing rule, a foreign firm can’t have majority shareholding in a retail firm. There has been considerable growth in organized retailing business in recent years in India. Major industrial houses have entered this area and have announced very ambitious future expansion plans. Transitional corporations are also seeking to come to India and set up retail chains in collaboration with big Indian companies. However, opinions are divided on the impact of the growth of organized retail in the country. The important role of FDI in supplementing domestic resources and in ensuring employment generation in the development of an economy is unquestionable. At present, India’s retail market is largely unorganized, with an estimated 15 million tiny outlets catering to the individual needs and employing the second largest number of people after agriculture. The organized retail giants targeting the 300 million in the “middle classes” and the 200 million in the rural areas, who from a consumer market worth more than $ 100 billion,. Even though India has the highest number of per capita outlets -6- per 1000 populations, it has the lowest retail power. The retail outlets are dominated by grocery in both the urban and rural areas and this represents 71 percent of the retail market in the rural market.

A major underlying concern of the recent upturn in investments and which perhaps differentiates it from the normal run of foreign investments is food security. This reflects a fear arising from the recent high food prices and policy – induced supply shocks. Notably the result of export controls, that depended on world markets for food supplies has become more risky. For those countries facing worsening land and water constraints but with increasing populations, income and urbanization and hence increasingly dependent on imported food, these fears provoked a serious reassessment of their food security strategies. Investing in producing food in countries where the land, water constraints faced domestically or not present is seen as one strategic response. This offered investment opportunities to the private sector for which the governments and the financial institutions have been willing to support. Similar reasoning lies behind investments to produce agricultural raw-materials to maintain the through put of processing industries.

Investors outside countries with food security concerns or requiring flows of agricultural raw-materials for processing have also seen profitable opportunities for portfolio diversification into food production investments, especially as returns on other investments become less attractive. Others have been motivated by the prospects offered by bio-fuel developments. A number of dedicated investment funds, the Africa transformational Agri Fund, for example have recently been established to invest in African agriculture with some claiming social as well as financial objectives.

Some developing countries are making strenuous efforts to attract and facilitate foreign investment into their agricultural sectors. For them, foreign direct investment is seen as a potentially important contributor to filling the investment gap, although how far these investments go towards meeting their real investment meets is uncertain. The financial benefits to host countries of asset transfers appear to be small. Land rents demanded are typically low or even zero, for example, while the various tax concessions offered to foreign investments mean tax revenues foregone. However, foreign investments are seen as potentially providing developmental benefits through for example technology transfer, employment creation and infrastructural developments. Whether these potential developmental benefits are actually likely to be realized is a key concern. This issue is required to be discussed in detail..

Recent policies and programmes of the government have not shown favourable impact on the agricultural growth and marketing of goods. Therefore, the present seminar is aimed to focus on some of the issues to be discussed with administrators, academicians, senior citizens farming community and stake-holders. It will be organized by the Department of Economics under SAP-DRS-II during 9th & 10th March, 2013, to discuss the impact of FDI on retail sector in India in its length and breadth.

The following are some of the sub-themes identified for the seminar

• FDI – Comparative Analysis of Developed and Developing Countries
• FDI – Implications on Indian Economy
• FDI – Effects on Indian Agriculture

• FDI – Effects on Income and Employment
• Changing Scenario of Industries in the context of FDI and its role on Retail Markets
• FDI and Social Inclusiveness

The above are only some of the sub-themes which are only suggestive but not exhaustive. The paper writers can also submit papers on any other sub-themes of their choice related to the main theme of the seminar. The papers should be accompanied by a small abstract and it must be in MS-Word 2003 version only. The organizers of the seminar would like to bring out the proceedings in the form of a book at a later stage. The papers should reach the Co-ordinator or Convenor of the seminar on or before 28th February, 2013. If it is a joint paper only one participant is eligible to claim TA as per UGC norms.

Advisory-cum-Organizing Committee:

Prof. B. R. Shyamala Devi
Prof. (Mrs.) N. Vijaya
Prof. T. Jyothi Rani
Prof. Mohd. Iqbal Ali
Prof. T. Papi Reddy
Prof. A. Vinayak Reddy
Prof. M. Ashok Kumar
Prof. K. Manuja Devi
Prof. S. Kanaka Chary
Dr. S. Radhakrishna
Dr. B. Suresh Lal
Dr. M. Pushpalatha

Dr. K. Mohan Reddy
Dr. D. Swaroopa Rani
Dr. M. Ramesh Reddy

Prof. C. Renuka Prof. G. Rajaiah
Head & Convenor Co-ordinator, SAP-DRS-II
Phone No: 0870-2461421 Phone No: 0870-2461458
Mobile: 9490456486 Mobile: 9866178298

Prof. G.Bhaskar
Dy, Co-ordinator, SAP-DRS-II
Mobile No. 98496-91741

E-mail: prof.rajaiah