The paper opportunities and challenges of FDI in retail in india by (Rajib Bhattachryya)

studies the growth of FDI in the global economic landscape over the last two decades has
made it an fundamental part of the development strategy of the both developed and
developing nations. It acts as a major change in the development of a country through
improvement of technology, managerial skills and capabilities in various sectors. The
development of indian market attracts a number of foreign retailers and domestic corporate
to invest in this sector. By adoption of advanced supply chain and benefit consumers and
producers (farmers) FDI in the retail can elaborate markets by reducing transaction and
manufacturing costs of business. The main focuses of this paper on the opportunities and
major challenges faces while expansion of FDI in retail sector in india.

(DIPP Report,2010) Indian government advises that retail source a percentage of

manufactured products from the small and medium domestic enterprises. Due to the
openness of the retail sector to FDI provide a boost to small-and medium enterprises.

Generation of significant employment potential, specially between the rural and semi-urban
youth due to expansion in the retail sector. It is very difficult to forecast about the future of
indian retail sector.

Government should aware about the fear raised by carper and adequate measures must be
taken so that the positive effect may overcomes the negative ones and the domestic
retailers can coexist even after big foreign retailers enter into market.