Authors : Mohamed Rafiuddin, Dr. Satyanarayanan. G.

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 Volume 3 Issue 9

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In the era of Globalization, liberalization and privatization, the economy as a whole is opening up significantly. Several nations across the world have allowed Foreign Direct Investment many years ago. Chinese government took a call to allow allowed foreign direct investment (FDI) in nineteen ninety two; Brazilian, Mexican, and Argentinean Governments in 1994, Thailand & Indonesia allowed in 1997 & 1998. India is not far behind in this journey. India has already increased fifty one percent foreign direct investment (FDI) in single brand retailing to hundred percent, in cash & carry, 100% FDI is allowed and 100% foreign direct investment allowed across leather product (includes Harness & Saddlery) export sector. Foreign direct investment (FDI) across multi brand retailing is been discussed for several years now. FDI in multi-brand retailing has its advantages and limitations. We cannot ignore a possible threat to domestic retailers from entry of global players. One needs to understand myths and realities of global player’s entry into India and review the impact of organized retailing on un-organized sector. FDI’s entry into Indian retail sector is inevitable. However with Government policies, it will be level playing field for Indian and International entities thereby ensuring that Indian entities do not suffer. The author believes that to enable Indian economy to integrate with global economy, with proper regulatory framework, foreign direct investment (FDI) should be allowed and encouraged.
Keywords:-single-brand retail; multi-brand retail; economy; domestic retailer; global player; Indian Economy; Government policies, multi-national retailers.