NAMITA RAJPUT, Akanksha Khanna, Simple Arora


Globalisation and liberalisation the two pillars of new economic world order has lead to revolutionary change and  overhauling in the approaches and business practices worldwide in order to address the opportunities and challenges presented by the Multi Polar World. There is a paradigm shift from conventional business practices to a more geographical flexible approach thereby aligning all their business strategies to the present external environment. It is believed that Foreign Investment plays a vital role and is catalyst in achieving the economic growth of especially embryonic countries like India. Indian Retail Sector is having a enormous potential capacity to attract FDI and  is expected to grow three times the current levels mounting the level of retail FDI to 660 US billion $ by 2015.Large Format Retailers have now diminished the idea of “Grow local and sell local” completely. But the latest move by the Indian government to allow 51% FDI in Multi Brand Retailing has attracted a huge debate in the country. There are many controversies that have been raised by some political parties and trade unions relating to the outcomes of this step which has been initiated by government of India. It has been argued that the reforms will result in greater benefits to the economy, consumers and farmers. Henry Ford, the genius inventor said, “Don’t find fault, find a remedy”. This axiom reverberates ever so relevantly in today’s Indian retail sector set-up like never before. In this context, the present paper makes a modest attempt to analyse the controversial issues concerning the influx of FDI in multi brand retailing and also highlights the challenges and threats to all the players involved in it. This paper also reviews those adequate safeguards that should be build by the Indian government so that it does not end up in losing proposition.


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