FORIENGN DIRECT INVESTMENT IN INDIAN RETAIL SECTOR: A CRITICAL ANLYSIS

Volume : IV, Issue : III, March - 2015

Dr. Naila Iqbal Khan

 India being a signatory to World Trade Organizations General Agreement on Trade–in Services, which includes 

wholesale and retailing services, had to open up the retail trade sector to foreign investment. There were initial 

reservations towards this issue arising from fear of job losses, procurement from international market, competition 

and loss of entrepreneurial opportunities to locals. However, the government in a series of moves opened up the retail sector slowly to Foreign 

Direct Investment (.FDI.). In 1997, FDI in cash and carry (wholesale) with 100% ownership was allowed under the government approval route. 

Subsequently It was ought under the automatic route in 2006..Opening the retail industry to FDI will ing forth benefits in terms of advance 

employment, organized retail stores, availability of quality products at a better and cheaper price. It enables a country’s product or service to 

enter into the global market. 