Trend in foreign direct investment in Indian retail market: Empirical evidence

The foreign direct investment (FDI) helps in transferring of financial resource, technology, innovative and improved management techniques along with raising productivity. Indian retail sector is one of the most sought after sectors that carry great potential for attracting FDI. The global FDI flows rose to $1,524 billion in 2011 from $1,309 billion in 2010. It was noticed that Mauritius, Singapore, USA, UK and Japan are the top most investor as compared to the rest of the global market interested in the Indian economy. FDI inflow was received by the service sector which was accompanied by construction development and township as well as telecommunication industry and was heavily concentrated around Mumbai and Delhi city. The food and grocery is the largest category within the retail sector with 60 per cent share followed by apparel and mobile segment.