FDI in Indian Retail Sector-Perspectives and Prospects

With the advent of globalization, developing countries, particularly those in Asia, have been witnessing a massive surge of FDI inflows during the past two decades. Even though India has been a latecomer to the FDI scene compared to other East Asian countries, its significant market potential and a liberalized policy regime has sustained its attraction as a favourable destination for foreign investors. This article aims to examine the impact of inward FDI on the Indian economy, particularly after a decade of economic reforms, and analyzes the challenges to position itself favourably in the retail market. In this context, the article further investigates the likely impact of FDI inflows to Indian retail sector especially on Employment, Organized and unorganized sectors. Exports, Hyper marketing and shopping malls. Farmers and small manufacturers and Infrastructure.