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Foreign Direct Investment &
its Impact On
Retail trade In India
Mr.Sarwade Chetan Walmik
S.B Arts & Commerce College,
Aurangabad,
Maharashtra,
India.
 Introduction
India Is assumed to be called as an economic super
power in near future. But there is a lot of difference
between dream and current happening. With the
liberalization policy of 1992,India has opened its
doors to borrow foreign crutches for its crippled and
walk able economy and like wise the Market was
liberalized within a decade.
India is tipped as the 2nd largest retail market After
China, and the total size of the Indian Retail
Industry is Expected to touch the $750-800 billion
mark in the next five years from the current $200
billion. But the recent debate has centered on the
issue of whether FDI in retail in India will be a “Boon
or a bane”
Retail and real estate are the two booming sectors of
India in the Present times. And if industry experts are to
be believed, the prospectus of both the sectors are
mutually dependent on each other.
Retail, One Of India’s largest Industries, has presently
emerged as one of the most dynamic and fast paced
industries of our times with several players entering the
market. As the contemporary retail sector in India is
reflected in Sprawling shopping centers, multiplex-malls
and huge complexes offering shopping, entertainment
and food all under one roof, the Concept of Shopping
has altered in terms of format, and consumer buying
behavior, ushering in a revolution in shopping in India.
 Objectives of the Study
The objectives of the present study are as follows:
 To study the relationship between FDI and its
impact on Indian Dependence.
 To Study the relationship between price factors
and stainable competition.
 To study the relationship between employment
and unemployment.
 Research Methodology
The type of research conducted here is
descriptive in nature. The research is done on
the Academicians of Aurangabad. The Size of
Sample was 100 representing the universe.
Respondents are qualified people with
experience.
 Table 1.1
Table Showing the Number of academicians
according to their academic status.
Total
Major
colleges
Principal Associate
Professor
Assistant
professor
Lecturer Total
Respodents
10 16 18 23 43 100
 Analysis and Interpretation:
The table 1.1 below indicates the various profiles
of the respondents academicians.For the first
column out of 100 respondents 81% were male
and only 19% were female.the average age of
the respondents was between 30 to 45 years.
 Table 1.2
Respondents response to government’s decision
to allow 51% FDI In retail.
Academicians Strongly
agree
Agree Neither Disagree Strongly
Disagreed
100 07 32 09 39 13
 Table 1.3
Classification of Respondents on basis of market
structure (Monopoly of MNC)
Academicians Strongly
Agree
Agree Neither Disagree Strongly
disagree
100 19 33 07 29 12
 Conclusion
Retail Sector in India is growing tremendously, but to
allow FDI(i.e 100%) in Indian retail sector will be
disastrous. Without any specific rules and
regulations the profit sharing will fall in the long run.
Though at present it seems the best option to boost
the Indian economy, but in the long run when the
MNC’s will become powerful and our economy will
depend on their decisions.
“Who Will Bell the Cat?”.Then they will influence the
Indian economy and interferes in the Indian political
scenario.
It is must for India to make rules like Lebanon and
China ,that every MNC is allowed in every sector
and FDI is completely liberated in all the sector but
it should be like whatever profit these MNC’s will be
earning they should reinvest 75% of the Profit In
India.
The planner certainly have these things in mind that
FDI in retail in post WTO scenario will have positive
results in long run and also provide a chance to
have a sectarian development of economy
especially those areas where India needs to do
much more than invite FDI.
FDI Impact on Indian Retail

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FDI Impact on Indian Retail

  • 1. Foreign Direct Investment & its Impact On Retail trade In India Mr.Sarwade Chetan Walmik S.B Arts & Commerce College, Aurangabad, Maharashtra, India.
  • 2.  Introduction India Is assumed to be called as an economic super power in near future. But there is a lot of difference between dream and current happening. With the liberalization policy of 1992,India has opened its doors to borrow foreign crutches for its crippled and walk able economy and like wise the Market was liberalized within a decade. India is tipped as the 2nd largest retail market After China, and the total size of the Indian Retail Industry is Expected to touch the $750-800 billion mark in the next five years from the current $200 billion. But the recent debate has centered on the issue of whether FDI in retail in India will be a “Boon or a bane”
  • 3. Retail and real estate are the two booming sectors of India in the Present times. And if industry experts are to be believed, the prospectus of both the sectors are mutually dependent on each other. Retail, One Of India’s largest Industries, has presently emerged as one of the most dynamic and fast paced industries of our times with several players entering the market. As the contemporary retail sector in India is reflected in Sprawling shopping centers, multiplex-malls and huge complexes offering shopping, entertainment and food all under one roof, the Concept of Shopping has altered in terms of format, and consumer buying behavior, ushering in a revolution in shopping in India.
  • 4.  Objectives of the Study The objectives of the present study are as follows:  To study the relationship between FDI and its impact on Indian Dependence.  To Study the relationship between price factors and stainable competition.  To study the relationship between employment and unemployment.
  • 5.  Research Methodology The type of research conducted here is descriptive in nature. The research is done on the Academicians of Aurangabad. The Size of Sample was 100 representing the universe. Respondents are qualified people with experience.
  • 6.  Table 1.1 Table Showing the Number of academicians according to their academic status. Total Major colleges Principal Associate Professor Assistant professor Lecturer Total Respodents 10 16 18 23 43 100
  • 7.  Analysis and Interpretation: The table 1.1 below indicates the various profiles of the respondents academicians.For the first column out of 100 respondents 81% were male and only 19% were female.the average age of the respondents was between 30 to 45 years.
  • 8.  Table 1.2 Respondents response to government’s decision to allow 51% FDI In retail. Academicians Strongly agree Agree Neither Disagree Strongly Disagreed 100 07 32 09 39 13
  • 9.  Table 1.3 Classification of Respondents on basis of market structure (Monopoly of MNC) Academicians Strongly Agree Agree Neither Disagree Strongly disagree 100 19 33 07 29 12
  • 10.  Conclusion Retail Sector in India is growing tremendously, but to allow FDI(i.e 100%) in Indian retail sector will be disastrous. Without any specific rules and regulations the profit sharing will fall in the long run. Though at present it seems the best option to boost the Indian economy, but in the long run when the MNC’s will become powerful and our economy will depend on their decisions. “Who Will Bell the Cat?”.Then they will influence the Indian economy and interferes in the Indian political scenario.
  • 11. It is must for India to make rules like Lebanon and China ,that every MNC is allowed in every sector and FDI is completely liberated in all the sector but it should be like whatever profit these MNC’s will be earning they should reinvest 75% of the Profit In India. The planner certainly have these things in mind that FDI in retail in post WTO scenario will have positive results in long run and also provide a chance to have a sectarian development of economy especially those areas where India needs to do much more than invite FDI.