Foreign Direct Investment: Myth or Reality

Retail is the biggest employer in India and unorganized retail has really big chunk in it. It is obvious that organized retail is mostly penetrated in urban part of country which is small portion of this huge sector. Further, India's GDP has also growing at fast rate and now only second fastest after China. Foreign Direct investment plays important role in the growth of any country. Initially India was little conservative approach towards FDI but now country and especially retail sector is taking it seriously and understanding its role in new way. Unorganized retailer also have seen lot of differences in taste and preferences in consumer buying, the study of this shift can give a lot of help to this sector in improvement and fight against organized retail and FDI in Retail. There are various kinds of protest and different opinion from politicians and other unorganized retail groups were seen against the sector in recent past. This paper is written actually to find out how unorganized retail can take a clue from the FDI benefit outside country and improve in their functioning and mixes to compete at national level.

SSRN Electronic Journal, 2015

According to the Investment Commission of India, the retail sector is expected to grow almost three times its current levels to $660 billion by 2015. Investments are sought by Indian Retailers also to get necessary push for evolution of organized retailing in India, which has been much slower as compared to rest of the world. This is significant to mention that despite of the ongoing wave of incessant liberalization and globalization the absence of political will to attract advanced technology and to adopt new retail format is holding retail revolution. FDI in Indian Economy is present since ages, though it is revealed from the chart that there are some states and cities where FDI inflows are larger in comparison of rest of the India. Maharashtra, Tamilnadu, Delhi, Karnataka and Andhra Pradesh are attracting two third of the total investment being the main centers of IT development in last 15 years. Moreover, on city to city basis, it is revealed that there is huge segregation in the inflows as more than 50 percent inflows are dropping in few cities Bangloru, Mumbai and National Capital Region (NCR).

India has emerged as the fifth attractive retail destination attracting global retailers for entry and expansion plans (Global retail expansion by A.T. Kearney, 2012). Indian retail market is worth USD 396 Billion in 2012 and estimated to grow by 12 % by 2015. Government of India has allowed 51% in multi brand retailing (Minimum investment of USD 100 million) and 100% in single brand retailing. The matter of contention was whether the new FDI policy will replace the existing small scale retail players and Kirana stores. But when we analyse the scale of operations, functional expenses, man power requirement and inventory to be maintained the threat of global retailers to Kirana stores are minimal. The article focuses on the Indian unorganized retailing and organized retailing in the context of changing government policy for the retail sector.

IOSR Journal of Business and Management, 2014

The retail industry in India is being hailed as one of the sunrise sectors in the economy. According to AT Kearney, international management consultancy identified India as the "second most attractive retail destination" .According to Deloitte report Jan 2013, The Indian retail industry is expected to be around 850 billion USD by 2015 and is expected to be over 1.3 trillion USD by 2020. The share of organized retail is estimated to be 20% by 2020. The recent wave of reforms by the Government of India to intensify FDI in retail has brought about a new outlook on the business climate in India. This paper attempts to outline the government"s policy on FDI in retailing and tries to examine its pros and cons while examining the voices of small retailers on the government"s decision. This paper is based on the

Indian Retail Industry is ranked among the ten largest retail markets in the world. The attitudinal shift of the Indian consumer and the emergence of organized retail formats have transformed the face of Retailing in India. With the sign of reemergence of economic growth in India, consumer buying in retail sector is being projected as a key opportunity area. As a consequence, Indian corporate houses are refocusing its strategic perspective in retail marketing with the idea to use resources optimally in order to create core competence and gain competitive advantage.

International Journal of Economics and Finance, 2016

India being second most-populous country has immense scope for retail expansion as along with time urbanization and consumerism has also been increasing. Initially India was conservative regarding FDI; it imposed restriction on foreign companies to limit their share in equity capital of their Indian subsidiaries but over the time Government of India gradually liberalized foreign investment in various sectors. Recently in 2011 India permitted 100% FDI in single brand retail and in 2012, 51% FDI permitted in multi brand. Even though organized retail sector in India is at the infant stage, India has today become a budding target for FDI. India today offers the most persuasive investment opportunity for mass merchants and food retailers looking to expand overseas as Indian economy is growing at a rapid pace with consumers having high purchasing power. FDI is a sturdy source for the intensification of retailing and will create enormous opportunities for innovation in retail sector in Ind...

SSRN Electronic Journal, 2012

Foreign direct investment (FDI) plays an important role in India's growth dynamics. There are several examples of the benefits of FDI in India. FDI in the retail sector can expand markets by reducing transaction and transformation costs of business through adoption of advanced supply chain and benefit consumers, and suppliers (farmers). This also can result in net gains in employment at the aggregate level. This paper brings forth a few conceptual issues and analysis of qualitative information, data and stylized facts on these issues.

2015

Indian retail industry is one of the sunrise sectors with huge growth potential which is expanding and modernizing rapidly. Indian retail is one of the most sought after sectors that carry great potential for attracting Foreign Direct Investment (FDI) as foreign investors are extremely eager on charisma in Indian retail sector. In spite of the recent developments in retailing and its immense contribution to the economy, retailing continues to be the least evolved industries and the growth of organized retailing in India has been much slower as compared to rest of the world. Undoubtedly, this gloomy situation of the retail sector, despite the ongoing wave of incessant liberalization and globalization, stems from the absence of an FDI encouraging policy in the Indian retail sector. The issue of opening of retail sector for FDI is most controversial concern in recent time. As the Indian retail sector in vast thus FDI in such forum is a big challenge which is the purpose of present paper.

IJLTEM.COM, 2019

Organized retail in India is managed by both the Ministries of Commerce & Consumer Affairs. While the Ministry of Commerce takes care of the retail policy, the Ministry of Consumer Affairs regulates retailing in terms of licenses and legislations. There is a need to govern retail operations through a single apex body. A single agency can take care of retail operations more effectively, especially with regard to addressing the grievances of retailers. The development of the retail sector can take place at a faster pace if a comprehensive legislation is enacted. Lack of sophisticated retail planning is another major challenge the sector faces. Available space is easily interchangeable between commercial and retail use. In most cities, it is difficult to find suitable properties in central locations for retail, primarily due to fragmented private holdings, infrequent auctioning of large government owned vacant lands and litigation disputes between owners. Due to the absence of 'industry status', organized retail in India faces difficulties in procurement of organized financing and fiscal incentives. The Government should grant the much needed 'industry status' to the sector so that the sops that come with it helps promote both big & small retailers. The retail sector and its environment have experienced radical changes in the last decade. Most of the changes are due to changing demographic, and changes in the retail sector including the addition of Carrefour, K-Mart, etc. This is focusing on the relative importance of the various products purchased at organized retail outlets and the choice of format, choice for Private Label brand and the acceptance level as well. The research paper is basically focusing on the challenges faced by organized retailers in India.

This paper provides detailed information about the growth of retailing industry in India. It examines the growing awareness and brand consciousness among people across different socio-economic classes in India and how the urban and semi-urban retail markets are witnessing significant growth. It explores the role of the Government of India in the industries growth and the need for further reforms. In India the vast middle class and its almost untapped retail industry are the key attractive forces for global retail giants wanting to enter into newer markets, which in turn will help the India Retail Industry to grow faster. The paper includes growth of retail sector in India, strategies, strength and opportunities of retail stores, retail format in India, recent trends, and opportunities and challenges. This paper concludes with the likely impact of the entry of global players into the Indian retailing industry. It also highlights the challenges faced by the industry in near future.