FDI in Retail Sector in India

Abstract

Indian retail industry is the second largest in the world. The share of retail trade was between 8-10% in 2001 and 12% in 2010 and 22% by the end of 2012 with growing demand the industry is expected to grow at a pace of approximately 30%annually. According to the investment commission of India, retail sector is expected to grow almost three times its current level to 660 billion US dollar by 2015.  The growing Indian market has attracted a number of foreign retailers and domestic company to invest in this sector. FDI in the retail can enlarge markets by reducing transaction and transformation costs of business through adoption of highly developed supply chain and benefit consumers and suppliers (farmers).  This paper tries to study the present scenario of FDI in India with special reference to retail sector.