FDI In Retail Research Articles

Impact of Multi Brand Foreign Direct Investment in Retail Sector in India

India has been placed at first position in the category of countries with the best opportunity for investment in the Retail Sector by a survey of A.T. Kearney’s 2005 on Global Retail Development. The increasing disposable incomes among the Indian middle class and increasing young population have been cited as the main reasons for such attractive optimism. This positive opinion of the experts has also encouraged the intense lobbying by certain sections for opening Foreign Direct Investment in this sector. Foreign investors are also very enthusiastic to invest in India’s Retail Sector.At present India does not allow FDI in multi-brand retail but permits up to 51 percent in single brand retail and 100 percent in cash and carry wholesale trading. There is a ban on FDI in big multi-brand retail stores but there is no restriction on companies accessing the foreign equity market through the American and Global Depository Receipts. The Government of India opened up FDI in ‘Single Brand Retailing’ in the year 2006. This was done with a primary motive of giving a boost to organized retailing in India.However, there’s another equally strong lobby that has been opposing this idea tooth and nail. They claim that it will mop away the corner shops in every locality and chuck inhabitants out of the jobs and bring unthinkable melancholy. The Government cap over FDI in retail, like in many other sectors, has been essentially a personification of the dilemma that confronts policy makers about whether opening up FDI in retail would be a boon or bane for the sector and for the stakeholders involved in it.This Research Paper makes a modest attempt of developing an insight as to what are the trends in the Indian Retail Industry and to the benefits and drawbacks of FDI in this sector. It has also focused on whether this policy will be beneficial for the Indian Economy as a whole or not.

Phoenix of Retail Sector in India and Scope of FDI in Retail

The retail sector in India is enjoying a tremendous growth, with the organised retail sector catching up the pace at a faster rate. The effect of the alteration of the changing face of the Indian retail sector has changed the life of consumers in India. Metamorphing, this article sensitises the larval stage of the retail sector due to an escalation of investment in the retail sector in India. The country, India with a strong fundamental and growth potential, increased consumerism and urbanisation has given immense scope for retail growth and foreign players emerging as a major player. Opening up and widening of several important sectors like infrastructure, townships, housing, cash and carry trading, wholesale trading, E-Commerce, single brand retail, commodity exchanges etc. have further spurred the interest in India as the FDI capital of world. More interest is being shown in retail sector which India is gradually opening up. This was the first time a thought to open up FDI in multi – brand retail had seen a positive horizons. FDI should be viewed as a tool of growth for Indian Retail segment by injecting liquidity.

Globalization in Retail Culture: FDI in Retail, Opportunities, Challenges to Democratic Element in India

India is a democratic country where everyone is free to choose his/her livelihood sources. Retail is field which has been chosen by very large number of people (more than one retailer for every hundred people) in India for their livelihood. And most of the retail trade in India is forced, unorganized and fragmented. Certain bad effects of this fragmentation are there to the democratic element in India and there is need of fragmentation. Efforts are being made to convert this unorganized market to organized one by the Government especially by allowing FDI. With the livelihoods of small traders and hawkers in threat due to the corporate entry in retail the resistance against the later is growing in almost every part of the country. Up to what extent this FDI poses threat to the existing unorganized retail culture and what are the various opportunities available to the democratic element in India, masses and other bodies? Whether the problem of unemployment can be solved with the FDI in retail trade? What efforts Government will take to give jobs to the unemployed masses if this unemployment happens because of the FDI? These are the questions the answer of which lies in the following discussion.

The Opportunities and Challenges of FDI in Retail in India

The spectacular and unprecedented growth of FDI in the global economic landscape over the last two decades has made it an integral part of the development strategy of both the developed and developing nations. It acts as a major catalyst in the development of a country through up-gradation of technology, managerial skills and capabilities in various sectors. Rise in purchasing power, growing consumerism and brand proliferation has led to retail modernization in India. The growing Indian market has attracted a number of foreign retailers and domestic corporate to invest in this sector. FDI in the retail can expand markets by reducing transaction and transformation costs of business through adoption of advanced supply chain and benefit consumers and suppliers (farmers). Oppositions have raised concerns about employment losses, promotion of unhealthy competition among organized domestic retailers resulting in exit of small domestic retailers from the market and distortion of urban cultural development. The present paper focuses on the overview of the Indian retail sector along with the opportunities of expansion of FDI in retail in India and the major challenges that it faces.

FDI in Retail

FDI in Retail

Foreign Direct Investment in Retail: Bane Or Boon

With Government very well putting the cap on Privatization & Disinvestment, foreign direct investment in trade has developed into the fresh theatre of war flanked by the pro-reform and anti-reform lobbies. Foreign investors are tremendously enthusiastic on charisma in India's retail sector. AT Kearney's 2005 Global Retail Development Index has termed India The most compelling opportunity for retailers. There's sufficient reasons cited for this: the country is becoming richer, close to a quarter of the population is in the 20-34 age group in demand by marketers, and punter expenditure is anticipated to pick up in a major way. Both sides have been taking extreme positions. Those rooting for FDI assure overall opulence if it is permitted. Undeniably, FDI in retail is emerging as a sort of litmus trial to the government's pledge to liberalization, with Prime Minister also supporting advancement on this front. On the other hand, those divergent on the pitch claim it will mop away corner shops in every locality, chuck inhabitants out of jobs & bring unthinkable melancholy. This article develop an insight as to what are the trends in Indian Retail Industry, benefits and drawbacks of FDI in Retail, whether it will be beneficial for economy and finally the challenges in Indian Retailing.