Fdi In Retail And Its Contributions

• Foreign Direct Investment is an investment made by an outside country in the host country having most of the ownership and controlling power. For a host country it can provide a source of new technologies, capital, processes, products, organizational management, skills, and a strong impetus to the economy. FDI in India has been on the rise since 2014 and steadily has been finding its growth.

• FDI in retail industry means that foreign companies in certain categories can sell products through their own retail shop in the country. At present FDI in pure retailing is not permitted under Indian law. Government of India has allowed FDI in retail of specific brand of products. As India is one of the developing countries , so FDI must be promoted but must be kept under control as it can affect the economy of the country.

• The retail sector in India is one of the biggest contributors to the economy in terms of revenue and contributes about 15% towards its GDP. It provides the second highest rate of employment after agriculture. The retail sector in India is vast and has huge scope for development as majority of the constituents are of the unorganised sector