Abstract
Post global economic slowdown, India is bearing the balance of payments and trade deficit complications regularly. Foreign investment is the only way to come out from this critical situation and Indian Government had removed the hurdles of foreign investors to enter 100% in single brand retail as well as 51% in multi-brand retail. This research attempts to analyse the necessity of foreign direct investment (FDI) and its role in employment generation in Indian retail sector during the last decade via statistical analysis. Here, FDI is considered as an independent variable and employment as dependent variable. The results are obtained from the correlation test and regression analysis with the help of IBM-SPSS. An analysis has been performed by using ordinary least square (OLS) method to show that FDI in retail sector has positive impact on the employment generation. Lastly, based on the inference obtained, few suggestions have been made for the policy makers, local retailers and foreign investors to negate the FDI challenges on the Indian skilled and unskilled job seekers.
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