International Journal on Science and Technology

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Call for Paper Volume 17 Issue 4 October-December 2026 Submit your research before last 3 days of December to publish your research paper in the issue of October-December.
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Volume 17 Issue 4
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FDI in Retail Sector: Problems and Prospects

Author(s) Ms. Sudeepa . M
Country India
Abstract Foreign Direct Investment (FDI) is considered as a lifeline to the economic development of a country especially for the developing and emerging economy like India. It is more than just a source of capital, but also a means to transfer technology, build infrastructure, boost productivity, and create jobs. This paper discusses the issues and future of FDI in the retail sector in India, which is a politically sensitive yet economically important sector. The introduction of FDI in retail is linked to better supply chain technologies, informational spillovers to domestic firms and competition that leads to greater competitiveness in terms of higher prices, product diversity, and lower post-harvest wastage for consumers and suppliers, including farmers. Meanwhile, liberalisation has given rise to serious fears of job losses in the unorganized sector, the ability of small domestic stores, and the social and economic effects of the foreign presence in the Indian retail market. This paper attempts to follow a descriptive, secondary data analysis of the process of FDI policy formation in Indian retail, current status of the FDI policy, FDI inflow patterns by sectors and principal benefits and challenges of retail FDI. The paper concludes that the FDI in retail, if policy provisions are put in place to ensure the existence of organised and traditional retail outlets, has significant potential for modernisation of the retail infrastructure and supply chains in India.
Keywords Foreign Direct Investment; Retail Sector; Multi-Brand Retail; Single-Brand Retail; Economic Development; India
Field Business Administration
Published In Volume 17, Issue 4, October-December 2026
Published On 2026-10-08
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Crossref DOI prefix of IJSAT is 10.71097/IJSAT

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