A Literature Review on Impact of FDI on Indian Retail Sector

Abstract

Government of India allowed 51% FDI in single brand retail and 100% in cash & carry only. But FDI in multi brand retail has not yet been allowed. One of the major steps taken by the Government recently to encourage the organized retailing in the country was the recent decision of the cabinet to allow 51% FDI in multi brand retail and 100% in single brand retail in Nov 2011. The government has ultimately taken the bold decision and notified the much-awaited policy allowing 100 % FDI in single brand retail from the existing 51%. In view of the above background, it was proposed to undertake a study to assess the impact of the government’s decision to allow 51% foreign direct investment (FDI) in multi-brand retail and 100% in single brand retail on the Indian retail sector. This study is completely a review based study which throws light on reviewing FDI Policy in India, FDI Policy with regard to Retailing in India, Factors attracting FDI towards Indian Retail Sector and Impact of FDI on Retail Sector.