Volume : 4, Issue : 3, March - 2015

FORIENGN DIRECT INVESTMENT IN INDIAN RETAIL SECTOR: A CRITICAL ANLYSIS

Dr. Naila Iqbal Khan

Abstract :

<p>&lt;p&gt;&amp;nbsp;India being a signatory to World Trade Organizations General Agreement on Trade&amp;ndash;in Services, which includes&amp;nbsp;&lt;/p&gt; &lt;div&gt;wholesale and retailing services, had to open up the retail trade sector to foreign investment. There were initial&amp;nbsp;&lt;/div&gt; &lt;div&gt;reservations towards this issue arising from fear of job losses, procurement from international market, competition&amp;nbsp;&lt;/div&gt; &lt;div&gt;and loss of entrepreneurial opportunities to locals. However, the government in a series of moves opened up the retail sector slowly to Foreign&amp;nbsp;&lt;/div&gt; &lt;div&gt;Direct Investment (.FDI.). In 1997, FDI in cash and carry (wholesale) with 100% ownership was allowed under the government approval route.&amp;nbsp;&lt;/div&gt; &lt;div&gt;Subsequently It was ought under the automatic route in 2006..Opening the retail industry to FDI will ing forth benefits in terms of advance&amp;nbsp;&lt;/div&gt; &lt;div&gt;employment, organized retail stores, availability of quality products at a better and cheaper price. It enables a country&amp;rsquo;s product or service to&amp;nbsp;&lt;/div&gt; &lt;div&gt;enter into the global market.&amp;nbsp;&lt;/div&gt;</p>