Global Journal of Commerce & Management Perspective
Open Access

Abstract

Foreign Direct Investment in Retail Sector

Ms. Poonam Rani, Dr. Geeta Shiromani and Ms. Sakshi Chopra

In the post liberalization period, changes in the consumer purchase behaviour are seen with growing liberalization, rise in per capita income, GDP and explosion of brands. This rise in large base of consumers has been an attraction for big global retailers and major domestic corporate sector to invest in modern retail sector in India. The retail industry is expected to grow at rate of 14% by 2013. The first step towards allowing foreign investment in retail was taken in the year 2006 subsequently the government of India has allowed 100% FDI in single brand retail to give consumer greater access to foreign brands, with the on going debate whether it should be allowed in multi brand retail or not. The objective of present paper is to analyse the impact of present retail FDI policies on Indian consumer and economy using SWOT analysis. The analysis reveals that it will have few positive but more negative impacts on the growth of the Indian economy as a whole.