IDEAS home Printed from https://ideas.repec.org/a/ibn/ijefaa/v8y2016i12p216-223.html
   My bibliography  Save this article

Foreign Direct Investment and Retailing in India: Opportunities and Challenges

Author

Listed:
  • Desti Kannaiah
  • A. Vinayagamoorthy

Abstract

India being second most-populous country has immense scope for retail expansion as along with time urbanization and consumerism has also been increasing. Initially India was conservative regarding FDI; it imposed restriction on foreign companies to limit their share in equity capital of their Indian subsidiaries but over the time Government of India gradually liberalized foreign investment in various sectors. Recently in 2011 India permitted 100% FDI in single brand retail and in 2012, 51% FDI permitted in multi brand. Even though organized retail sector in India is at the infant stage, India has today become a budding target for FDI. India today offers the most persuasive investment opportunity for mass merchants and food retailers looking to expand overseas as Indian economy is growing at a rapid pace with consumers having high purchasing power. FDI is a sturdy source for the intensification of retailing and will create enormous opportunities for innovation in retail sector in India but at the same time it is quite likely that a section of the domestic retailing industry will be severely hurt due to the entry of foreign retailers. In this paper researchers have tried to accentuate both the thoughts in detail and concluded the most constructive view on Opportunities and Challenges of FDI in Indian Retailing.

Suggested Citation

  • Desti Kannaiah & A. Vinayagamoorthy, 2016. "Foreign Direct Investment and Retailing in India: Opportunities and Challenges," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 8(12), pages 216-223, December.
    • Handle: RePEc:ibn:ijefaa:v:8:y:2016:i:12:p:216-223
    as

    Download full text from publisher

    File URL: http://ccsenet.org/journal/index.php/ijef/article/view/64579/34755
    Download Restriction: no
    File URL: http://ccsenet.org/journal/index.php/ijef/article/view/64579
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Anusha Chari & T. C. A. Madhav Raghavan, 2012. "Foreign Direct Investment in India’s Retail Bazaar: Opportunities and Challenges," The World Economy, Wiley Blackwell, vol. 35(1), pages 79-90, January.
    2. Namita Rajput & Subodh Kesharwani & Akanksha Khanna, 2012. "FDI and Indian Retail Sector: An Analysis," Journal of Business Administration Research, Journal of Business Administration Research, Sciedu Press, vol. 1(1), pages 53-64, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hampel-Milagrosa, Aimée & Brankamp, Hauke & Cremer, Thomas & Haddad, Alexander & Pannwitz, Katharina & Wehinger, Franziska & Agasty, Sangeeta & Sarkar, Tamal, 2017. "Retail FDI liberalisation and the transformation of agrifood value chains in India," IDOS Studies, German Institute of Development and Sustainability (IDOS), volume 95, number 95, July.
    2. Santra, Swarup & Bagaria, Nidhi, 2014. "Foreign direct investment in retail market in India: some issues and challenges," MPRA Paper 53521, University Library of Munich, Germany.
    3. Lakatos, Csilla & Fukui, Tani, 2014. "The Liberalization of Retail Services in India," World Development, Elsevier, vol. 59(C), pages 327-340.
    4. Trebbin, Anika, 2014. "Linking small farmers to modern retail through producer organizations – Experiences with producer companies in India," Food Policy, Elsevier, vol. 45(C), pages 35-44.
    5. Batsakis, Georgios & Theoharakis, Vasilis & Li, Chengguang & Konara, Palitha, 2023. "Internationalization and digitalization: Their differing role on grocer and non-grocer retailer performance," Journal of Retailing, Elsevier, vol. 99(3), pages 400-419.
    6. Abraham, Mathew & Verteramo Chiu, Leslie & Joshi, Ekta & Ali Ilahi, Muhammad & Pingali, Prabhu, 2022. "Aggregation models and small farm commercialization – A scoping review of the global literature," Food Policy, Elsevier, vol. 110(C).

    More about this item

    Keywords

    Foreign Direct Investment (FDI); retail sector; India; single & multi-brand retail;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ibn:ijefaa:v:8:y:2016:i:12:p:216-223. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Canadian Center of Science and Education (email available below). General contact details of provider: https://edirc.repec.org/data/cepflch.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.