A study of role of foreign direct investment in Indian retail sector

Foreign direct investment (FDI) plays an extraordinary and growing role in global business. It can provide a firm with new markets and marketing channels, cheaper production facilities, access to new technology, products, skills and financing. For a host country or the foreign firm which receives the investment, it can provide a source of new technologies, capital, processes, products, organizational technologies and management skills, and as such can provide a strong impetus to economic development. Foreign investment comes in several forms. Portfolio investment, foreign loans and foreign direct investment are the three important types. Of these foreign direct investments in retailing play an crucial role. This study aims to analyze the role of foreign direct investment in Indian retail sector. It intends to know the losses suffered by the farmers and the challenges being faced by global retailers from FDI. Research methodology is descriptive in nature.