Fdi: an effective tool to fill the gaps in organised retail sector in india

Author: 
Mugdha Sehgal and Batra J.K

Many researches have been done upon the paybacks of FDI but very few have focused upon the need to assess that how FDI would be able to remove all complexities and shortcomings of Indian retail sector. The present paper focuses on the gaps left out in the organised retail sector in India and how FDI will prove to be an effective tool to cover up these deficiencies.
The boom in Indian market has fascinated a lot of foreign retailers and domestic corporates to invest in our retail market. An increased income and purchasing power, growing consumer awareness and rising brand promotions has led to a big transformation in our retail sector and thus resulting in an improved and modernized business platform. FDI in the retail can expand markets by reducing transaction and transformation costs of business through adoption of advanced supply chain and can also be profitable for consumers and suppliers (farmers). But on the other hand, the organised retail industry has to fight with upcoming resistance and barriers from traders, politicians of India for FDI and the government has to devise a separate policy for the industry. The objective of my paper is to provide answers to the following questions: How the FDI policy will succeed to bring an improvement in supply chain in Indian retail sector? What benefits FDI would offer to farmers for increasing their efficiency? Whether the foreign players entered into the Indian Retail market through FDI will be able to increase the Customer Satisfaction of Indian Consumers? Will it be possible for FDI to Boost Healthy Competition and check inflation in Indian Retail sector?
The study is conducted with a sample size of 100 respondents categorized ascommerce and management students, economics and international business professors and few consumers of Delhi and NCR region using random sampling method. Likert's scale and percentage method will be used for data analysis.

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DOI: 
DOI: http://dx.doi.org/10.24327/ijcar.2017.4113.0441
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