Fdi Boon or Bane

Powerful Essays
FDI

FDI in Retail –BOON OR BANE???

*MD13109*

Abstract:
India is the attractive and profit oriented market for the investment to developed countries. Despite its good surplus and evergreen sector, the Retail-business in India lacks in Capital Investment and lack of transparency. The retailers are just focusing on urban sector and are unable to penetrate in rural sector.
FDI can be one solution that will lead to the expected development. If FDI is allowed in Retail-sector, it will help Retailers to gain more profits thus eliminating the flaws in the current system. As per government norms, if FDI is allowed then 50% of the total FDI has to be invested in backend infrastructure. This will improve the processing, distribution, packing & logistics in agro-sector. Thus a huge change in Retail-business is possible. This will have a positive impact on the Indian Economy growth. Increase of FDI in Retail also help full for providing employment. But there are also some drawbacks of FDI such as Flow of money to foreign destination and difficulty for unorganized players to withstand in cut-throat competition. Indian government has to take decision to introduce the FDI in retail along with all does and don’t.
This paper focuses on affect of FDI in Retail sector if introduced.

Keywords: Foreign Direct Investment (FDI), Retail-business, Govt. Interventions, Challenges, Recommendations.

Objective of Research- * To study the FDI (Foreign Direct Investment) in detail.

* To find out the contribution of FDI in Indian market.

* To study the impact of increase in FDI.

* To find out the effects on Indian economy of increase in FDI.

Hypothesis-
Increase in FDI going to affect positively on Indian market for Short term period.

Data and Methodology- We use secondary data for this research paper. It is just an Literature Review.The paper attempts a panel exercise for the select major emerging market economies to ascertain determinants of FDI flows. The data set



References: The Times of India (Dec 13, 2012). "BJP will break records". http://timesofindia.indiatimes.com/city/vadodara/BJP-will-break-records/articleshow/17604216.cms. Retrieved 2012-12-13. "China Edges Out U.S. as Top Foreign-Investment Draw Amid World Decline". Wall Street Journal. 10/23/2012. "India: Huge foreign investment opportunities in cold chain". Freshplaza.com. Retrieved 2012-11-17. "Retail firms with FDI can’t sell online,The Indian Express". indianexpress.com. September 22,2012. Retrieved January 10,2013. "FDI by Country". Greyhill Advisors. Retrieved 15 November 2011. "What is Foreign Direct Investment, Horizontal and Vertical « Knowledge Base". Guidewhois.com. Retrieved 2012-11-17. World Bank (2010), ‘Investing Across Borders - A Survey of 87 Economies’.

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