National Journal of Multidisciplinary Research and Development

National Journal of Multidisciplinary Research and Development


National Journal of Multidisciplinary Research and Development
National Journal of Multidisciplinary Research and Development
Vol. 5, Issue 3 (2020)

Impact of FDI on retail marketing in India


Akhileshwar Kumar Singh

In current policy of FDI, Government of India allowed 51% FDI in single brand retail and 100% in cash & carry only. But in India, FDI in multi brand retail has not yet been permitted. One of the major steps was taken by the Government of India in Nov 2011, to encourage the organized retailing in the country was the recent decision of the cabinet to allow 51% FDI in multi brand retail and 100% in single brand retail. The decision was delayed and held back for some time because of the absence of political consensus in the Government and controversies raised in the country. The government has ultimately taken the bold decision and notified the much-awaited policy allowing 100 % FDI in single brand retail from the existing 51%. The retail market in India is divided into two sector- organized and unorganized sector. The organized sector contributes to about 93% of the retail market whereas unorganized constitutes about 7%. Due to growing economy, advancing technology and other factors, India is viewed as a destination attractive for inflow of FDI.
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