GROWTH OF FDI IN RETAILING-A VIEW

The winds of globalization sweeping across has taken the Indian economic environment in its fold and the proposals for further integration has gained momentum, The transformation has also changed the Indian consumer from a state of conserving resources, he’s now ready to accept the shopping culture. The government encouraged by the outcome of economic policy of 1991 in India, has proposed retail reforms mainly as 100% FDI in the retail sector in India. It may benefit by bringing in investment into development of complete backend infrastructure like cold chain & supply chain enhancing efficiency from farm to fork, as well as eliminating the exploitative system of middlemen which bleeds the farmers and squeezes the consumers. The paper scrutinizes the relationship of Foreign Direct Investments with the Indian Retail Sector. However, the Indian government must take decision to contain this revolution & safeguard the health of the Indian retail sector to stabilize themselves against competition from the giant players of the global economy in the present state of slowing growth, stubborn inflation & widening fiscal deficit in the country.