Foreign Companies in Multi-brand Retailing in India

Retail sector is considered as one of the important pillars of Indian economy. Before the economic reforms in 1991, the flow of Foreign Direct Investment (FDI) in India was comparatively limited. Government policy towards foreign capital was very selective. Following the reforms, however, foreign investors are allowed to invest up to 100 percent in most of India`s economic sectors. As a consequence, the nation experienced improved economic performance. In spite of this, FDI into multibrand retailing remains partially restricted. The findings suggest that removing FDI investment caps will likely affect traditional stores, current market opportunities, and self-employment through start-up businesses with minimal investment. This paper examines the hypothetical impact of unrestricted multibrand retailing investment on India`s unorganized retailing.