India is ranked as the most attractive retail destination among 30 emerging markets by annual Global Retail Development Index. The retail industry in India is one of the sunrise sectors with enormous development prospective in the future. According to the Investment Commission of India, the retail sector is expected to grow almost three times its current levels to $660 billion by 2015. The reason behind it is its vast middle class and its almost untouched retail industry. Therefore the global retail giants want to enter into this newer untapped market, which in turn will help the India Retail Industry to grow faster. We have witnessed that the recent developments in retailing is in the slow pace.In spite of the immense contribution to the economy, retailing continues to be the least developing rate industries and the growth of organized retailing in India is very much slower as compared to rest of the world.
FDI plays an important role in India's growth dynamics. The Indian Government was initially very hesitant of the introduction of the Foreign Direct Investment in the Indian Retail Sector. The introduction of FDI in the retail sector can help this sector to expand market by reducing operation costs of business by the help of adoption of superior supply chain management and that will benefit consumers, and suppliers. This also can result in net gains in employment at the aggregate level. This paper throws some light on Introduction of Indian Retail, FDI Policy in India and FDI Policy for Indian Retailing. This paper concludes with the likely impact of the entry of global players into the Indian retailing industry in concern with FDI.
FDI, GDP, Competition, Retail sector
