Role of FDI in Indian Retail Business

Role of FDI in Indian Retail Business Dr. Veena Sharma Associate Professor (Economics) RRMK Arya Mahila Mahavidyalya Pathankot Email: veenamandar@gmail. com Mobile: +91-9915196342 Liberalization Globalisation Privatisation have brought in radical changes in the Indian Retail markets. Retail Business is a global concept nowadays. Retail business grew between 25 - 30 percent in India and 13 percent in fast growing economies China and Russia. India is more attractive than ever to global retailers. India's economic growth, was 8 percent. With the increase in the purchasing power of the people the retail business is sure to flourish Retailing in India is one of the pillars of its economy and accounts for 14 to 15 percent of its G D P. The Indian retail market is estimated to be US dollars 450 billion and one of the top five retail markets in the world by economic value. India is one of the fastest growing retail market in the world, with 1.2 billion people. In January 2012, India approved reforms for single-brand stores welcoming anyone in the world to innovate in Indian retail market with 100% ownership, but imposed the requirement that the single brand retailer source 30 percent of its goods from. The government allowed 51% foreign investment in multi-brand retail, relaxed FDI norms for civil aviation and broadcasting sectors and FDI cap in Broadcasting was raised to 74% from 49% and allowed foreign investment in power exchanges in September, Oct 2012. The growing affluence of India's consuming class, the emergence of the new breed of entrepreneurs and a flood of imported products in the food and grocery space, has driven the current retail boom in the domestic market