Fdi in Retail

VSRD International Journal of Business and Management Research, Vol. 2 No. 12, December 2012 ISSN No. 2231-248X (Online), 2319-2194 (Print) © VSRD International Journals : www.vsrdjournals.com

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RESEARCH ARTICLE

IMPACT OF FDI IN RETAIL – BOON OR CURSE

Himani Tyagi

Assistant Professor, Subharti Institute of Management & Commerce, Swami Vivekanand Subharti University, Meerut, Uttar Pradesh, INDIA. Corresponding Author : himanityagi001@gmail.com

ABSTRACT

FDI stands for Foreign Direct Investment, a component of a country's national financial accounts. Foreign direct investment is the investment of foreign assets into domestic structures, equipment, and organizations. It does not include foreign investment into the stock markets. Foreign direct investment is of growing importance to global economic growth. This is especially for developing and promising market countries. FDI from investors in developed areas like the EU and the U.S. provide funding and expertise to help smaller companies in these emerging markets to expand and increase international sales. Retailing is one of the world’s largest private industries. Liberalizations in FDI have caused a massive restructuring in retail industry. The benefit of FDI in retail industry superimposes its cost factors. Opening the retail industry to FDI will bring forth benefits in terms of advance employment, organized retail stores, availability of quality products at a better and cheaper price. It enables a countries product or service to enter into the global market. Indian retail industry is one of the sunrise sectors with huge growth potential. 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. However, 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...