FDI IN INDIAN RETAIL SECTOR - AN ANALYSIS

Foreign Direct Investment (FDI) has always been a matter of controversy in India. Whether FDI in Retail sector in India will be beneficial or harmful in the long run is a matter of strong debate among the economists and political thinkers. It is uncertain to predict the actual long run effects of FDI in the retail sector as well as the whole economy of India. At present, the advantages and disadvantages of FDI can be contemplated and only the views can be given which are perceived differently by different section of intellectuals. From one point of view FDI is an instrument of exploitation by the capitalist countries and on the other hand, others think that without inflow of foreign capital, underdeveloped countries cannot hope for rapid economic development and hence capitally poor countries should welcome FDI. Foreign Investment is always accompanied with new technology and idea and leads to skill formation. This fact cannot be denied while weighing the disadvantages of FDI.This paper examines the present scenario of FDI in Retail sector of India and the relative advantages and disadvantages as perceived by different social and political thinkers