The Impact of FDI Policy Reforms on The Retail Sector in India

Abstract

The Indian economy is booming, with an average GDP growth rate of more than 7 per cent (2014- 18) and is expected to be the world’s third largest economy after the USA and China by 2050 (Dadush and Stancil, 2009). India has witnessed a noticeable growth in the organized retail industry after the liberalization of the economy in the early nineties. Healthy economic growth, favourable demographic trends with young and thriving population, increasing disposable incomes, and urbanization are some of the factors driving growth in the organized retail market in India. According to A. T. Kearney’s Annual Global Retail Development Index, 2017, India ranks first among the top 30 emerging markets for retail globally. The present study aims at the investigating current retail scenario in India, analyzing the impact FDI reforms in attracting FDI in retail and evaluating the challenges and threats of FDI in Indian retail industry.