FDI in Retail Sector in India Current Practices and Impact over Indian Economy
Author : Dr. Gajendar Kumar Jangir and Dr. Punam Chand
Abstract :
In the contemporary global landscape characterized by rapid changes, there is a growing inclination among the international community to align itself with the Indian economy for integration purposes. The government, buoyed by the positive results of the economic strategy implemented in India in 1991, has put out proposals for retail reforms, mostly centred on allowing 100% foreign direct investment (FDI) in the retail sector of the country. Introducing investments into the development of a comprehensive backend infrastructure, such as cold chain and supply chain systems, has the potential to enhance the efficiency of the food chain while also eliminating the exploitative practices of intermediaries that negatively impact farmers and consumers. However, it is important to note that this initiative may not directly result in an increase in purchasing power for individuals or provide a substantial number of job opportunities to address the current state of our struggling economy. This study critically examines the correlation between Foreign Direct Investments and the Indian Retail Sector. Nevertheless, it is imperative for the Indian government to promptly and judiciously implement measures to control this revolution and protect the well-being of the Indian retail industry. This is necessary to establish stability in the face of competition from major players in the global economy, particularly given the current conditions of decelerating economic growth, persistent inflation, and expanding fiscal deficit in the country. Darwin's thesis of "survival of the fittest" has gained more relevance within the context of the corporate world.
Keywords :
Global business Olympics, giant, cold chain, supply chain, cash flow, fiscal deficit economy, economic policy, employment, FDI, multi brand retail
