RETAIL SECTOR - A HAVEN FOR FOREIGN DIRECT INVESTMENT IN INDIA

Abstract

Amidst the global meltdown, and financial crisis, India has managed to display resilience and attract good investments with her sound and astonishing macroeconomic variables and a GDP projection of 7.2%, and has earmarked its striking capital flow in the recent period with the private (debt and equity) flows as a lion’s share of the total capital flows. Also it envisages indirectly that the copious flow of FDI can be recalibrated at the State level. These increases in flows are towards the real estate and construction, computer related, metallurgical, petroleum industries and so on. However, recent inklings by the central government evince the consideration of foreign direct investment in retail trade and has put in debate whether it is good or not towards the advisability and consequence of this policy. This article throws light on the different sectoral roles of FDI and discusses its effect in the Indian retail scenario.