Spill over Effect of Foreign Direct Investment (FDI) in the Realm of Globalisation in India

Abstract

Indian retail industry is a sunrise sector and many global players are willing to enter this. Indian retail industry is one of the pillars of the Indian Economy. Since 1991, when the policy of the liberalization was introduced by the Indian Government, FDI has been a highly controversial issue. From the last 3-4 years our Government is talking about the FDI in retail sector as there are some growth drivers for this sector. But, if the Government decides to open up the doors for FDI in this sector then some consequences will be there. No doubt that FDI plays a very important role in the development of any economy but this development always has two aspects i.e. positive and negative. Experiences of FDI in retail of various countries like China, Russia, Thailand, etc. have been good. We are of the opinion that FDI should be allowed in retail sector in a phased manner but before that all the issues pertaining to this must be resolved.