FDI in India's retail trade. (15th March 2019)

• Record Type: Journal Article
• Authors: Kaushal, Leena Ajit
• Is Part Of: International journal of business and globalisation. Volume 22:Number 2(2019)
• Page Start: 143
• Page End: 153
• Publication Date: 2019-03-15
• Subjects: foreign direct investment -- FDI -- retail -- organised retail -- India -- multi-brand retail; International business enterprises -- Periodicals; Business ethics -- Periodicals; International economic integration -- Periodicals; Globalization -- Periodicals; 338.88105
• Languages: English
• ISSNs: 1753-3627

Abstract

The paper examines the political stand of holding back 100% FDI in multi-brand retail in India on the ground of safeguarding un-organised sector, the Kiranas. The study argues that this fear is largely unfounded by highlighting the dual nature of retail sector where foreign retailers operating through super markets cater mainly to the upper income groups with a demand for differentiated products leaving the market for undifferentiated and relatively low price goods to the Kiranas who cater the lower income groups mostly in the rural areas. The study hence proposes that the foreign owned firms in the retail sector are most unlikely to pose a threat to the Kiranas rather they may facilitate the sales of the Kiranas.