An investigation for analyzing the current scenario and future of FDI in Indian retail market

Abstract

In this research paper, researchers take a peek into the organized retail sector of India. It started making its presence felt nearly a decade after the first lot of entrepreneurs set up shop. Retailing can be said to be the network between the producer and the individual consumer. Retailing is the last link; this connects the individual consumer with the manufacturing and distribution chain. Retails involve the sale of goods from a single point (malls, market, departments, stores etc) directly to the consumer in small quantities for personal consumption. The changing scenarios of Indian consumers give a proof to the potential opportunity in the retailing arena. SWOT and its subheads take you to the crux of analysis into retail industry. Out of which we formulated the future prospects. FDI in retail has been contentious issue and may face resistance, given the perceived political scenario. Infact, FDI provides a win – win situation to the host and the home countries. Both countries are directly interested in inviting FDI, because they benefit a lot from such type of investment. The ‘home’ countries want to take the advantage of the vast markets opened by industrial growth. On the other hand the ‘host’ countries want to acquire technological and managerial skills and supplement domestic savings and foreign exchange.
An empirical analysis using cross-country data for the period 2003-2011 suggests that total FDI exerts an ambiguous effect on growth. Foreign direct investments in the primary sector, on growth, contribution of various sectors in FDI and share of the India in comparison to other economies. The Research Study discussed how organized retailing has increased their way of targeting consumers.