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Retail Sector and Foreign Direct Investment in India

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Retail Sector and Foreign Direct Investment in India Sagar G 3rd Semester, Department of Management Studies Rajeev Institution of Technology, Hassan wavesagar9@gmail.com

In many countries, the retail dimension has gone well ahead the middle class clientele to penetrate the poor and its profound and rapid transformation has not parted India. The modern-day retail in India is reflected in rambling shopping centre, malls and huge complexes offer shopping, entertainment and food under one roof. There has been considerable growth in retail business in recent past and is hovering for much faster growth in coming days.

Though emerging market economies have gone well ahead and reaped the benefits of modern retail …show more content…

At present Wall-mart is operating through its subsidiary in Bangalore in the process of setting up offices in New Delhi and Mumbai.

The emergence of new modern retail in India has attracted attention in recent years. Joseph, Mathew et.al (2008) has carried an extensive study on the impact of organised retailing on unorganised sector. The consulting firm KSA Technopak has organized retail summits in major metros which have witnessed participation from major domestic and international retailers.

Indian retailing is undergoing a process of evolution and is poised to undergo dramatic transformation. Sreejith .A (2007) opines a verbal picture of the impending retail boom likely to happen sooner than later. The signs are all over the place. Mulky, Avinash et.al (2003) writes that modernization of retailing in India would be influenced by some important factors which includes economic development, improvements in civic situation, changes in consumer needs, attitudes and behaviour, changes in government policies, increased investment in retailing and rise in the power of organized retail. The development of modern retail will have several implications for managerial practice in manufacturing firms.

Dipankar Dey of ICFAI Kolkata deliberates in his paper that unlike in other sectors, FDI in retail will have a much wider impact on the economy. Essentially, organised global retail chains will break the traditional

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