FDI in retail sector

FDI- FOREIGN DIRECT INVESTMENT means injection of the funds into an enterprise by a company having its origin and operation in a different country. With the introduction of Foreign Direct Investment, the investor invests funds in the company directly and as a result of this ownership the owner is granted management rights. Foreign Direct Investment plays a central role in the growth of Indian economy. It is essential part for the global economic system. With the help of various national policies and international investment architecture, benefits of the FDI can be availed to the larger extent. For the purpose of FDI, India is the second most important destination in the world followed by China in 2010-12. Various retail reforms were announced by the Central Government of India in November 2011, for Single Brand Stores and Multi Brand Stores. These reforms in the market lay the foundation for Innovations in retailing and competition with the single as well as multi brand retailers. Generally Foreign Direct Investment refers to the investment of foreign assets into domestic goods and services. Retail sector is emerging as one of the attractive sectors and is able to attract new foreign players. Number of Stakeholders emerged in the process of retailing, from retailers to end consumers having a bearing effect of FDI in retail. This paper covers FDI in single brand, Retail sector in India, FDI policy in India, FDI policy in retail, FDI routes, Sectors in which FDI is prohibited in India, Foreign investor’s concern Regarding FDI in single and multi brand.