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A Study on Foreign Direct Investment and Development in Indian Economy with Special Reference to Retail Sector
Authors: D. Revathipandian
Number of views: 331
FDI is one of the most "interesting topics in the area of international business and trade. FDI assumes a lot of
importance because it can influence rnicro, macro economic variables of a host country. It has its impact on employment,
prices, exports, imports,
Exports, balance of payments, economic growth, competition, production etc. FDI represent one of the most
important instruments through which a national economy can encourage production, knowhow, imports, increase in
employment, infrastructure development, poverty reduction, etc. The benefits achieved through the increase in
FDIs have created strong competition in the global market of free capital, all with the aim to attract as many and
as diverse FDIs as possible. The general trend in the global FDI market is the erasure of geographic borders between
developing countries and developed ones as in the past years, developing countries have not only represented a growing
FDI market, but have also been aimed at attracting capital intensive investments, as well as R & D investments. FDI is now
widely perceived as an important resource for. This paper tries to highlight the recent issue of Foreign Direct Investment in
the retail
Segments in both formats of single brand and multi-brand. The foreign investment which has prohibited entry of
investment in multi-brand has now emerged as the main issue The government recently has announced the foreign
investment of 49% stake for the foreign players to enter into the retail segment. This paper will exhibit the necessity and its
impact of foreign investment of retail in both single brand and as well as multi-brand. This paper will be an eye opener
with the SWOT Analysis and the key issues and the initiatives to be taken in this sector..The Indian government’s
favorable policy regime and robust business environment have ensured that foreign capital keeps flowing into the country.
The government has taken many initiatives in recent years such as relaxing FDI norms across sectors such as defense, PSU
oil refineries, telecom, power exchanges, and stock exchanges, Retailing among others.