Effect of FDI in retail on kirana stores in Punjab

During the last two years Government of India has made many reforms to speed up the growth of the economy. The major reforms which were protested all over the India were the Foreign Direct Investment (FDI) in single retail store and multi brand retail store. This paper is an attempt to know the effect of FDI in retail on kirana stores in Punjab and also to know the beneficial and detrimental effects of FDI in retail. Primary as well as secondary data has been used in the study. A detailed questionnaire has been made and sample size has taken one hundred owners of small kirana stores. The sample unit includes retail stores available in Sirhind, Khanna, Mandi Gobindgarh, Ludhiana and Moga. The analysis of data has been done with the help of factor analysis. The findings of the study revealed that FDI in retail will boost organized retail, bring new technology and better quality goods. It will also help in the infrastructure and economic development. Small kirana store owner feel FDI as a threat for them. They think that FDI will abolish their entry in the market. It has more positive aspects than negative ones.