Abstract
Retail sector is emerging as one of the attractive sectors and is able to attract foreign players. FDI in retail bears an effect on a number of stakeholders engaged in the process of retailing, from retailers to end consumers. The initiative of the GOI to attract FDI in retail, by liberalizing FDI policy must be significantly encouraged but should not be freely allowed. The review paper is based some of the important studies conducted by various researchers for finding the effect of FDI in Indian retail sector. The main aim of this paper is to make some research oriented paths to move forward. On the basis of the review, it has been found that liberalization of FDI policy towards retail sector bears positive as well as negative effects. The paper suggests that unorganized retailers are required to upgrade their retail stores to meet the challenges of the dynamic retail environment.
Highlights
RetailingRetailing is the last link in the process of Supply Chain Management
The analysis reveals that it will have a positive impact on the growth of Indian economy as a whole
The study pointed out perceived opportunities of opening FDI on one hand like capital infusion, benefit to farmers and consumers, improvement in supply chain, logistics and technology and potential threats such as dominance of organized retail, increased unemployment due to removal of middlemen, increase in real estate cost because of increase in demand to set up new big outlets and negative impact on Indian culture
Summary
Retailing is the last link in the process of Supply Chain Management. Retailer is the person who is in direct contact with the customers because of this it gains its importance for the manufacturer. As a result of ever changing demand of customers, liberalization of FDI policy, favorable responses of customers towards innovative products, the retail sector is able to attract big players to play in the field. The circular shows that Foreign Investment in Single Brand retail trading aimed at attracting investments in production and marketing, improving the availability of such goods for the consumer, encouraging increased sourcing of goods from India, and enhancing competitiveness of Indian enterprises through access to global designs, technologies and management practices, as Per DIPP consolidated FDI policy circular of 2015[4]. FDI in Multi Brand Retail Trading is allowed upto 51% through Government route, as per DIPP policy [5]. FDI in Multi brand retail trading is subject to certain conditions such as: Fresh agriculture produce (fruits, vegetables, flowers, grains, pulses, fresh poultry, fishery and meat products) may be unbranded. Retail trading in any form by means of e-commerce is not permissible for FDI, engaged in multi brand or single brand retail trading
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