FDI is considered to be the lifeblood of economic development especially for the developing and underdeveloped countries. The spectacular growth of FDI in global economic landscape has made it an integral part of the development strategy of both developed and developing nations. It plays an important role in the long term development of a country not only as a source of capital but also for enhancing competitiveness of domestic economy through transfer and up gradation technology, managerial skills and capabilities in various sectors, strengthening infrastructure, raising productivity and generating new employment opportunities. Rise in purchasing power, growing consumerism and brand proliferation in india. India was being looked up by many foreign nations as the scope of investment is seen to be high in our country for availability of huge resources. The growing Indian market has attracted a number of foreign retailers and domestic corporate to invest in this sector. FDI in retail sector can expand markets by reducing transactions and transformation costs of business through adoption of advanced supply chain. Allowing FDI proves good as improvements in supply chain technologies and informational externalities to local players and competitive dynamic that could benefit consumers and suppliers. Competition is best for consumers as it gives them variety, better quality. Oppositions have raised concerns about employment losses, promotion of unhealthy competition among organized domestic retailers from the market and distortion of urban cultural development.
Foreign direct investment, Indian retail sector, Organized retailing, Unorganized retailing, FDI Policy, GDP
