Assistant professor UGC Net (Management) Dec 2011 and June 2012 Faculty of Management Deapartment, LDC Institute of Technical Studies, Soraon, Allahabad
Online published on 4 August, 2018.
Retail is one of the largest sectors of Indian economy the unorganized retail sector in India occupies 98% of the retail business and the rest 2% is contributed by the organized sector. The unorganized retail sector contributes about 13% to the GDP and absorbs 6% of our labor force. 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.
Also there is divided opinion on the impact of FDI in the retail sector in India, Some say that FDI in the retail sector in India will lead to economic growth and creation of new jobs along with rural infrastructure development. But the other view point is that mass scale job loss will happen particularly in manufacturing sector with the entry of the big MNCs like Wal-Mart and Carrefour, Metro PLC and IKEA etc. This paper highlights Definition of Retail; Background & Division of Retail Industry, FDI Policy with Regard to Retailing in India, Foreign Investor's Concern Regarding FDI in Retail sector, SWOT !nalysis of Indian retail Sector, Govt/’s view point and Conclusion
FDI, Indian retail sector, impact on stakeholders, GDP, Labor, competition
