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Foreign Direct Investments and Retail

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INTRODUCTION India has explored its sixty eight independent years and the journey has been never then less a roller-coaster ride. While in its initial years, stakeholders have been cautious to strengthen the contemporary economy at that time rather than taking some out-of-box bold measures. And yes certainly we were blessed by those long run benefitting policies. But in 1990 Indian government realized the need to loosen the constraints and fire up the market with some foreign investment under leadership of Mr. Manmohan Singh (then finance minister). And thus was born FDI i.e Foreign Direct Investment in multi-brands like Adidas, Nike etc. Few years’ later government came up with concept of 51% investment of FDI in Retail in order to empower the fact that government was not lethargic or paralysis and Indian market is ready to face up with international brandishing and competition. But this move suddenly created a stir in temperatures of many economy and market experts, with all having a bunch of points to cast their viewpoints, in favor or in opposition of the move. and its on till date. WHAT IS FDI? FDI meaning foreign direct investment, and basically its implementation will bring in Wal-Mart Inc, Carrefour etc to own 51% of retail ventures and 100% of single brand stores. With our government allowing such a boosting and eye-flashing percentages of foreign investments, it also ties the hands of investors in several prospects solely for the encouragements and cherishment of small retailers and venders, at least government officials says so!!! Lets look from baseline how our market is shaped off and whether its internal module will support FDI concept or a wipe-out of small retailers may take real shape? MARKET MODULE OF INDIA Retailing in India takes place through two corridors: Firstly through Unorganized Sector, mainly consisting of about 97% Indian Retailing Market and this sector contribute majorly in out GDP. Secondly throug

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