{"id":27873,"date":"2024-02-17T10:43:53","date_gmt":"2024-02-17T10:43:53","guid":{"rendered":"https:\/\/edukemy.com\/blog\/?p=27873"},"modified":"2024-02-17T10:55:50","modified_gmt":"2024-02-17T10:55:50","slug":"though-india-allowed-foreign-direct-investment-fdi-in-what-is-called-multi-brand-retail-through-joint-venture-route-in-september-2012-the-fdi-even-after-a-year-has-not-picked-up-discuss-the-reaso","status":"publish","type":"post","link":"https:\/\/edukemy.com\/blog\/though-india-allowed-foreign-direct-investment-fdi-in-what-is-called-multi-brand-retail-through-joint-venture-route-in-september-2012-the-fdi-even-after-a-year-has-not-picked-up-discuss-the-reaso\/","title":{"rendered":"Though India allowed foreign direct investment (FDI) in what is called multi-brand retail through joint venture route in September 2012, the FDI even after a year, has not picked up. Discuss the reasons. (5 marks, 100 words)"},"content":{"rendered":"<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><a href=\"https:\/\/edukemy.com\/upsc\/upsc-gs-advance-and-mentorship-program-ampcsat?utm_source=Blog&amp;utm_medium=Link&amp;utm_campaign=GS+Advanced\" target=\"_blank\" rel=\"noreferrer noopener\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1280\" height=\"300\" src=\"https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/07\/Attempt-our-Daily-Weekly-Current-Affairs-Quiz-now-8.png\" alt=\"\" class=\"wp-image-43397\" srcset=\"https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/07\/Attempt-our-Daily-Weekly-Current-Affairs-Quiz-now-8.png 1280w, https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/07\/Attempt-our-Daily-Weekly-Current-Affairs-Quiz-now-8-1170x274.png 1170w, https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/07\/Attempt-our-Daily-Weekly-Current-Affairs-Quiz-now-8-585x137.png 585w\" sizes=\"(max-width: 1280px) 100vw, 1280px\" \/><\/a><\/figure><\/div>\n\n\n<p>Despite India&#8217;s decision to permit foreign direct investment (FDI) in multi-brand retail through joint ventures in September 2012, the anticipated surge in FDI has failed to materialize even after a year. This stagnation has raised questions and sparked discussions regarding the underlying reasons behind the lackluster performance in attracting foreign investment in this sector. Various factors contribute to this phenomenon, encompassing regulatory constraints, infrastructural bottlenecks, apprehensions among local stakeholders, and the complexities of the Indian market landscape. Understanding these impediments is crucial for policymakers and stakeholders alike to devise strategies that can unlock the potential of FDI in multi-brand retail and stimulate economic growth.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p><strong>Tag: <\/strong>Investment models.&nbsp;&nbsp;<\/p><\/blockquote>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_73 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<label for=\"ez-toc-cssicon-toggle-item-69d153e321e0b\" class=\"ez-toc-cssicon-toggle-label\"><p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-cssicon\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d153e321e0b\"  \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/edukemy.com\/blog\/though-india-allowed-foreign-direct-investment-fdi-in-what-is-called-multi-brand-retail-through-joint-venture-route-in-september-2012-the-fdi-even-after-a-year-has-not-picked-up-discuss-the-reaso\/#Decoding_the_Question\" title=\"Decoding the Question:&nbsp;&nbsp;\">Decoding the Question:&nbsp;&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/edukemy.com\/blog\/though-india-allowed-foreign-direct-investment-fdi-in-what-is-called-multi-brand-retail-through-joint-venture-route-in-september-2012-the-fdi-even-after-a-year-has-not-picked-up-discuss-the-reaso\/#Answer\" title=\"Answer:&nbsp;&nbsp;&nbsp;\">Answer:&nbsp;&nbsp;&nbsp;<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/edukemy.com\/blog\/though-india-allowed-foreign-direct-investment-fdi-in-what-is-called-multi-brand-retail-through-joint-venture-route-in-september-2012-the-fdi-even-after-a-year-has-not-picked-up-discuss-the-reaso\/#There_are_various_reasons_behind_it_which_include\" title=\"There are various reasons behind it, which include:&nbsp;\">There are various reasons behind it, which include:&nbsp;<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/edukemy.com\/blog\/though-india-allowed-foreign-direct-investment-fdi-in-what-is-called-multi-brand-retail-through-joint-venture-route-in-september-2012-the-fdi-even-after-a-year-has-not-picked-up-discuss-the-reaso\/#In_case_you_still_have_your_doubts_contact_us_on_9811333901\" title=\"In case you still have your doubts, contact us on 9811333901.&nbsp;\">In case you still have your doubts, contact us on 9811333901.&nbsp;<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/edukemy.com\/blog\/though-india-allowed-foreign-direct-investment-fdi-in-what-is-called-multi-brand-retail-through-joint-venture-route-in-september-2012-the-fdi-even-after-a-year-has-not-picked-up-discuss-the-reaso\/#Visit_our_YouTube_Channel_%E2%80%93_here\" title=\"Visit our YouTube Channel &#8211;&nbsp;here\">Visit our YouTube Channel &#8211;&nbsp;here<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Decoding_the_Question\"><\/span><strong>Decoding the Question:<\/strong>&nbsp;&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>In Introduction try to write the definition of Joint- Venture.<\/strong>&nbsp;&nbsp;<\/li><li><strong>In Body,<\/strong>&nbsp;&nbsp;<\/li><li><strong>Discuss why FDI has still not picked up in the multi-brand retail sector.&nbsp;<\/strong>&nbsp;&nbsp;<\/li><li><strong>Try to conclude the answer with suggestions.&nbsp;<\/strong>&nbsp;&nbsp;<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Answer\"><\/span><strong>Answer:&nbsp;<\/strong>&nbsp;&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>A joint venture (JV<\/strong>) is a business arrangement in which two or more parties agree to pool their resources to accomplish a specific task. This task can be a new project or any other business activity. In a joint venture (JV), each of the participants is responsible for\u202fprofit, losses, and costs associated with it. However, the venture is its own entity, separate from the participants&#8217; other business interests.&nbsp;&nbsp;<\/p>\n\n\n\n<p>In 2012 the Government allowed 51% FDI in the multi-brand retail sector but it has not picked up since then.&nbsp;&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"There_are_various_reasons_behind_it_which_include\"><\/span><strong>There are various reasons behind it, which include:<\/strong>&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Euro Crisis: <\/strong>The Euro crisis, a current account deficit of over 4%, double-digit inflation, corruption in governance and a failing political system. It would not be unfair to say that these factors have combined in varying degrees at different times to lead to the conclusion that the globally-acclaimed India growth story seems to be heading for an unhappy ending.&nbsp;&nbsp;<\/li><li><strong>Unclear Policy Framework:<\/strong> As it has been said that unclear policies or an environment of confusion lead to unattractive offers to foreign investors to invest In India in the multi-brand trade sector.&nbsp;&nbsp;&nbsp;<\/li><li><strong>Politicization:<\/strong> As many political parties are claiming that if FDI is allowed in the multi-brand retail sector, it will lead to economic colonization of India.&nbsp; (Currently, FD in this sector is allowed to 100%, with 51% MSME content compulsory).&nbsp;&nbsp;<\/li><li><strong>Bureaucratization: <\/strong>Getting approval<strong> <\/strong>from various government departments, including state-level approval, is another problem to not picking up FDI in this sector.<strong>&nbsp;<\/strong>&nbsp;&nbsp;<\/li><\/ul>\n\n\n\n<p>Hence, to promote FDI in the multi-brand sector, first, we need to improve ease of doing and its various sub-categories. This may lead to increased job creations, consumer as king can become true if this FDI takes place and achieves its intended objectives.&nbsp;&nbsp;&nbsp;&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image size-full is-resized\"><a href=\"https:\/\/edukemy.com\/upsc\/upsc-essay?utm_source=Blog&amp;utm_medium=Banner&amp;utm_campaign=Essay\" target=\"_blank\" rel=\"noreferrer noopener\"><img decoding=\"async\" data-src=\"https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/06\/UPSC-Essay-Course-1280\u00d7300-1-3.svg\" alt=\"\" class=\"wp-image-42688 lazyload\" width=\"781\" height=\"182\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 781px; --smush-placeholder-aspect-ratio: 781\/182;\" \/><\/a><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"block-0852e8d9-d77d-4f32-b617-621718b5dbf9\"><span class=\"ez-toc-section\" id=\"In_case_you_still_have_your_doubts_contact_us_on_9811333901\"><\/span><strong>In case you still have your doubts, contact us on 9811333901.<\/strong>&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p id=\"block-f1a56b80-b7b4-4135-a37b-2aa2660d6bfd\">For UPSC Prelims Resources,&nbsp;<a href=\"https:\/\/edukemy.com\/upsc-cse-prelims-resource-centre\" target=\"_blank\" rel=\"noreferrer noopener\">Click here<\/a><\/p>\n\n\n\n<p id=\"block-ac11dd41-cc2b-4afd-b9df-7cc51084d393\">For Daily Updates and Study Material:<\/p>\n\n\n\n<p id=\"block-3285c649-2f18-4f86-b863-9ca055737fe0\">Join our Telegram Channel &#8211;&nbsp;<a href=\"https:\/\/t.me\/WithEdukemy4IAS\" target=\"_blank\" rel=\"noreferrer noopener\">Edukemy for IAS<\/a><\/p>\n\n\n\n<ul class=\"wp-block-list\" id=\"block-a98aa02f-712e-4117-a211-d368b2ee4be7\"><li>1. Learn through Videos &#8211;&nbsp;<a href=\"https:\/\/bit.ly\/3vOD8sU\" target=\"_blank\" rel=\"noreferrer noopener\">here<\/a><\/li><li>2. Be Exam Ready by Practicing Daily MCQs &#8211;&nbsp;<a href=\"https:\/\/bit.ly\/3Q9z2nF\" target=\"_blank\" rel=\"noreferrer noopener\">here<\/a><\/li><li>3. Daily Newsletter &#8211; Get all your Current Affairs Covered &#8211;&nbsp;<a href=\"https:\/\/bit.ly\/3bE2y5J\" target=\"_blank\" rel=\"noreferrer noopener\">here<\/a><\/li><li>4. Mains Answer Writing Practice &#8211;&nbsp;<a href=\"https:\/\/bit.ly\/3mZuVxl\" target=\"_blank\" rel=\"noreferrer noopener\">here<\/a><\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"block-e2cb2cad-5b82-4c27-b2a1-13223c909d62\"><span class=\"ez-toc-section\" id=\"Visit_our_YouTube_Channel_%E2%80%93_here\"><\/span>Visit our YouTube Channel &#8211;&nbsp;<a href=\"https:\/\/www.youtube.com\/@ShabbirsEduKemyforIAS\" target=\"_blank\" rel=\"noreferrer noopener\">here<\/a><span class=\"ez-toc-section-end\"><\/span><\/h4>\n","protected":false},"excerpt":{"rendered":"<p>Despite India&#8217;s decision to permit foreign direct investment (FDI) in multi-brand retail through joint ventures in September 2012, the<\/p>\n","protected":false},"author":17,"featured_media":27886,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_eb_attr":"","om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[1524],"tags":[1629,142,232,145,140],"class_list":["post-27873","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-upsc-mains-solved-paper-gs-3","tag-fdi","tag-previous_year_questions","tag-upsc","tag-upsc-mains-question-paper","tag-upsc_preparation_strategy"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/posts\/27873","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/users\/17"}],"replies":[{"embeddable":true,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/comments?post=27873"}],"version-history":[{"count":2,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/posts\/27873\/revisions"}],"predecessor-version":[{"id":27887,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/posts\/27873\/revisions\/27887"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/media\/27886"}],"wp:attachment":[{"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/media?parent=27873"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/categories?post=27873"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/tags?post=27873"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}