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Fdi in Retail: Beneficial or Detrimental and It’s Future Affect on Indian Economy

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Submitted By harjotkaur
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FDI IN RETAIL: BENEFICIAL OR DETRIMENTAL
AND IT’S
FUTURE AFFECT ON INDIAN ECONOMY
BY
HARJOT KAUR PARMAR
(UGC NET, MBA, PGDM, BBA,)

ABSTRACT
FDI is a type of investment that involves the injection of foreign funds into an enterprise that operates in a different country of origin from the investor. Regardless of today’s crisis, India is considered as one of the most superlative place by foreign investors because of its increasing young population and rising disposable income among the middle class society, that is why large corporations like walmart are showing keen interest in initiating there retail operations in India. But mass round of discussions and debate has started after Government decision on 14 September 2012 allowing FDI in aviation up to 49%, in the broadcast sector up to 74%, in multi-brand retail up to 51% and in single-brand retail up to 100% with high level of disagreement and resistance from the opposition who believe that entry of Big Corporations in retail sector will badly effect the crores of retail shopkeepers and vendors resulting in depart of kirana stores, Whereas government is in favor and believe that it will generate large scale of employment, benefit both farmers as well as consumers and will help in reducing inflation. This research paper aim is to find why foreign investors are attracted towards India, find arguments in favor and against of FDI and what will be its effect on Indian economy in future, whether FDI will be favorable for Indian economy or not .

I. INTRODUCTION

Foreign Direct Investment (FDI)
Consistent economic growth, de-regulation, liberal investment rules, and operational flexibility are all the factors that helped in increasing the inflow of Foreign direct investment or FDI.
According to the International Monetary Fund,
“foreign direct investment, commonly known as FDI, "... refers to an

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