A Critical study of FDI in Indian Retail Sector: An Analysis of Impact on Stakeholders

Abstract

Retail sector contributes for around 10% of country's GDP and is expected to reach to US$ 1.3 trillion by year 2020 as per India Brand Equity Foundation (IBEF) Report. The changing preferences, more importance to comfort with increased knowledge of updated technologies of customers has changed the outlook of retail sector in India. The initiatives taken up by the Government to uplift the sector has lead to the entry of FDI in this sector like never before. The retail sector in India is highly fragmented with cultural diversity which acts as a complexity and challenge of the sector. The sector possesses numerous opportunities for growth which will help in development of Indian economy. Indian retail sector is expected to nearly double to US$ 1.3 trillion by 2020 from US$ 600 billion in 2015. The present paper examines the impact of FDI in Indian retail sector on its stakeholders. It tries to suggest the innovative way outs to adopt for liberal FDI policy by the Government taking into consideration the interests of Indian retailers.