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2014•International Journal of Research in IT and ManagementRequires access

A study on effects of FDI in retail on MSMES in India

Baljeet Kaur, Anu Priya Arora

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Abstract

The post-liberalization period observed a growing trend of FDI inflows in India with a high growth rate. The relaxation of policies towards international trade and investment supported by an affirmative response from capital exporting countries is also regarded as a prime mover of FDI inflows into India. Whether it is retail sector, education sector or information technology or telecommunication sector, there is a constant variation in FDI inflows into these sectors over the years. Indian retail industry is one of the sunrise sectors with vast growth potential. According to the Investment Commission of India, the retail sector is likely to grow nearly three times its current levels to $660 billion by 2015. Despite of the recent developments in retailing and its enormous contribution to the economy, retailing continues to be the least progressed industries and the growth of organized retailing in India has been much slower in contrast to rest of the world.

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What this paper is about

The post-liberalization period observed a growing trend of FDI inflows in India with a high growth rate. The relaxation of policies towards international trade and investment supported by an affirmative response from capital exporting countries is also regarded as a prime mover of FDI inflows into India. Whether it is retail sector, education sector or information technology or telecommunication sector, there is a constant variation in FDI inflows into these sectors over the years. Indian retail industry is one of the sunrise sectors with vast growth potential. According to the Investment Commission of India, the retail sector is likely to grow nearly three times its current levels to $660 billion by 2015. Despite of the recent developments in retailing and its enormous contribution to the economy, retailing continues to be the least progressed industries and the growth of organized retailing in India has been much slower in contrast to rest of the world.

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Available abstract

The post-liberalization period observed a growing trend of FDI inflows in India with a high growth rate. The relaxation of policies towards international trade and investment supported by an affirmative response from capital exporting countries is also regarded as a prime mover of FDI inflows into India. Whether it is retail sector, education sector or information technology or telecommunication sector, there is a constant variation in FDI inflows into these sectors over the years. Indian retail industry is one of the sunrise sectors with vast growth potential. According to the Investment Commission of India, the retail sector is likely to grow nearly three times its current levels to $660 billion by 2015. Despite of the recent developments in retailing and its enormous contribution to the economy, retailing continues to be the least progressed industries and the growth of organized retailing in India has been much slower in contrast to rest of the world.

Key concepts: Liberalization, Foreign direct investment, Business, Commission, Investment (military), Agriculture, International economics, Economics

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