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FDI Document Transcript
1. Available ONLINE www.vsrdjournals.com VSRD-IJBMR, Vol. 2 (7), 2012, 327-
337RESEARCH ARTICLERESEARCH ARTICLE Foreign Direct Investment : The Big
Bang in Indian Retail 1 Arun Kr. Singh* and 2P.K. AgarwalABSTRACTThe winds of
globalization sweeping across has taken the Indian economic environment in its fold and
theproposals for further integration has gained momentum, The transformation has also
changed the Indianconsumer from a state of conserving resources, hes now ready to
accept the shopping culture. The governmentencouraged by the outcome of economic
policy of 1991 in India, has proposed retail reforms mainly as 100%FDI in the retail
sector in India. It may benefit by bringing in investment into development of complete
backendinfra structure like cold chain & supply chain enhancing efficiency from farm to
fork, as well as eliminating theexploitative system of middlemen which bleeds the
farmers and squeezes the consumers. The paper scrutinizesthe relationship of Foreign
Direct Investments with the Indian Retail Sector. However, the Indian governmentmust
take decision to contain this revolution & safeguard the health of the Indian retail sector
to stabilizethemselves against competition from the giant players of the global economy
in the present state of slowinggrowth, stubborn inflation & widening fiscal deficit in the
country.Indias retail industry is divided into organized and unorganized sectors. Post
liberalization, organized retail hasgrown exponentially and is a testament of the Indian
middle classs burgeoning purchasing power. As aconsequence, the opening up of the
wholesale and single brand retail sector to foreign direct investment (FDI)was
inevitable. India is ranked as the third most attractive nation for retail investment among
30 emergingmarkets with domestic companies like the Future Group, Tatas Westside,
Reliance Fresh, Raheja Group andBharti Retail competing for market share.The current
regulations on retail allow 100% FDI in wholesale cash-and-carry trading. In single-
brand retailing,100% FDI is permitted while it is prohibited in multi-brand retailing. The
question arises whether opening up ofFDI in multi-brand retail will create problems or
provide opportunities. There is no clear answer and ampleviews have been expressed by
that in favour and against FDI.____________________________1 Research Scholar,
Department of Management, Mewar University, Chittorgarh, Rajasthan, INDIA.
2Director, DeewanInstitute of Management Studies, Meerut, Uttar Pradesh, INDIA.
*Correspondence: aksr27@gmail.com
2. Arun Kr. Singh et al / VSRD International Journal of Business & Management
Research Vol. 2 (7), 2012This paper is an attempt to get an insight as to what are the
trends in Indian retail industry, advantages &disadvantage of 100% FDI in
retail.Keywords: Retail; Organized Retail; Unorganized Retail; FDI.1.
INTRODUCTIONFor Indian retailing, things started to change slowly in the 1980s,
when India first began opening its economy.Textiles sector (which companies like
Bombay Dyeing, Raymonds, S Kumars and Grasim) was the first to seethe emergence of
retail chains. Later on, Titan, maker of premium watches, successfully created an
organizedretailing concept in India by establishing a series of elegant showrooms. For
long, these remained the onlyorganized retailers, but the latter half of the 1990s saw a
fresh wave of entrants in the retailing business. Thistime around it was not the
manufacturer looking for an alternative sales channel. These were pure retailers withno
serious plans of getting into manufacturing. These entrants were in various fields, like -
FoodWorld,Subhiksha and Nilgiris in food and FMCG; Planet M and Music World in
music; Crossword and Fountainheadin books.Now India is in the midst of a retail boom.
The sector witnessed significant transformation in the past decadefrom small-
unorganized family-owned retail formats to organized retailing. Indian business houses
andmanufacturers are setting up retail formats while real estate companies and venture
capitalist are investing inretail infrastructure. Many international brands have entered the
market. With the growth in organized retailing,unorganized retailers are fast changing
their business models. However, retailing is one of the few sectors whereforeign direct
investment (FDI) is not allowed at present.2. RESEARCH METHODOLOGYThe sheer
potential of Retail sector and its contribution in Indian economy highlights the relevance
of this paper.The objectives of paper are : Advantages & Disadvantages of FDI in
Retail. Impact of FDI on various stakeholders. Evaluate the effect of Organized Retail
on the Unorganized Retail.3. MATERIAL AND METHODThe study is based on
different literatures, Case studies and analysis of organized retail market.3.1. Indian
Retailing TrendsThe retail industry in India is of late often being hailed as one of the
sunrise sectors in the economy. ATKearney, the well-known international management
consultancy, recently identified India as the second mostattractive retail destination
globally from among thirty emergent markets. It has made India the cause of a gooddeal
of excitement and the cynosure of many foreign eyes. With a contribution of 14% to the
national GDP and 328
3. Arun Kr. Singh et al / VSRD International Journal of Business & Management
Research Vol. 2 (7), 2012employing 7% of the total workforce (only agriculture employs
more) in the country, the retail industry isdefinitely one of the pillars of the Indian
economy. Modern retail formats - The growth of western-style malls is changing the way
urban consumers shop. Were seeing many bigger box, value based formats setting up
shop. The size of these stores is about 50,000 square feet, a departure from the smaller
mom & pop-type store that dominates the local retail landscape. Shoppers Stop -
department store format. Westside - emulated the Marks & Spencer model of 100 per
cent private label, very good value for money merchandise for the entire family. Giant
and Big Bazaar - hypermarket/cash & carry store. Food World and Nilgiris
supermarket format. Pantaloons and The Home Store - specialty retailing. Tanishq has
very successfully pioneered a very high quality organized retail business in fine
jewellery.A new entrant in the retail environment is the discounter format. It is also is
known as cash and- carry orhypermarket. These formats usually work on bulk buying and
bulk selling. Shopping experience in terms ofambience or the service is not the mainstay
here.3.2. FDI in Retail IndustryFDI in retail industry means that foreign companies in
certain categories can sell products through their ownretail shop in the country. At
present, foreign direct investment (FDI) in pure retailing is not permitted underIndian
law. Government of India has allowed FDI in retail of specific brand of products.
Following this, foreigncompanies in certain categories can sell products through their
own retail shops in the country.Indias retail industry is estimated to be worth
approximately US$411.28 billion and is still growing, expected toreach US$804.06
billion in 2015. As part of the economic liberalization process set in place by the
IndustrialPolicy of 1991, the Indian government has opened the retail sector to FDI
slowly through a series of steps:1995 : World Trade Organizations General Agreement
on Trade in Services, Which includes both wholesaleand retailing services, came into
effect.1997 : FDI in cash and carry (wholesale) with 100% rights allowed under the
government approval route.2006 : FDI in cash and carry (wholesale) brought under the
automatic route. Up to 51 percent investment ina single-brand retail outlet permitted.2011
: 100% FDI in single brand retail permitted.The Indian government removed the 51
percent cap on FDI into single-brand retail outlets in December 2011,and opened the
market fully to foreign investors by permitting 100 percent foreign investment in this
area. 329
4. Arun Kr. Singh et al / VSRD International Journal of Business & Management
Research Vol. 2 (7), 2012Government has also made some, albeit limited, progress in
allowing multi-brand retailing, which has so farbeen prohibited in India. At present, this
is restricted to 49 percent foreign equity participation. The specter oflarge supermarket
brands displacing traditional Indian mom-and-pop stores is a hot political issue in India,
andthe progress and development of the newly liberalized single-brand retail industry
will be watched with somekeen eyes as concerns further possible liberalization in the
multi-brand sector.In this Paper, Author discusses the policy developments for FDI in
these two retail categories, with a focus onthe details of the multi-brand retail FDI
discussion.3.3. FDI in Single-Brand RetailWhile the precise meaning of single-brand
retail has not been clearly defined in any Indian government circularor notification,
single-brand retail generally refers to the selling of goods under a single brand name.Up
to 100 percent FDI is permissible in single-brand retail, subject to the Foreign Investment
Promotion Board(FIPB) sanctions and conditions mentioned in Press Note 3[8]. These
conditions stipulate that:Only single-brand products are sold (i.e. sale of multi-brand
goods is not allowed, even if produced by the samemanufacturer).Products are sold
under the same brand internationally Single-brand products include only those
identified during manufacturing Any additional product categories to be sold under
single-brand retail must first receive additional government approvalFDI in single-brand
retail implies that a retail store with foreign investment can only sell one brand.
Forexample, if Adidas were to obtain permission to retail its flagship brand in India,
those retail outlets could onlysell products under the Adidas brand. For Adidas to sell
products under the Reebok brand, which it owns,separate government permission is
required and (if permission is granted) Reebok products must then be sold inseparate
retail outlets.3.4. FDI in Multi-Brand RetailWhile the government of India has also not
clearly defined the term multi-brand retail, FDI in multi-brandretail generally refers to
selling multiple brands under one roof. Currently, this sector is limited to a maximumof
49 percent foreign equity participation.These are positive step and it will encourage
international brands to set up shop in India. On the other hand, thiswill also lead to
competition among Indian players. It will be the consumers who stand to gain, This
would notchange the market dynamics immediately as it will take some time for these
plans to fructify. The growingdominance of multinational companies in the countrys
$200 billion retail business, had warned that any move toincrease FDI in the retail sector
would ruin the business of small and medium traders scattered over the
country.Organized retailers in India are opposing the entry of MNCs in retail trading
because of their predatory pricingstrategy that wipes out competition, when the
Government decides to allow foreign players to enter the retail 330
5. Arun Kr. Singh et al / VSRD International Journal of Business & Management
Research Vol. 2 (7), 2012space, it should first restrict them to lifestyle products segment
before permitting them to spread their wings intoother areas like grocery marketing that
has a direct impact on `kirana stores.FDI in retail trade has forced the wholesalers and
food processors to improve, raised exports, and triggeredgrowth by outsourcing supplies
domestically. The availability of standardized products has also boosted tourismin these
countries. FDI in retail sector has been a key driver of productivity growth in Brazil,
Poland andThailand. This has resulted in lower prices to the consumer, more
consumption and higher profit for theproducer.4. FOREIGN DIRECT INVESTMENT -
IMPACT AND ANALYSISMarket liberalization, a growing middle-class, and
increasingly assertive consumers are sowing the seeds for aretail transformation that will
bring more Indian and multinational players on the scene. The big Indian retailplayers
looking to expand their operations include Shoppers Stop, Pantaloon, Reliance, Lifestyle,
Food World,Viveks, Nilgiris, Ebony, Crosswords, Globus, Barista, Caf Coffee Day,
Wills Lifestyle, Raymond, Titan, Bataand Westside. Well-established business houses
such as Wadia, Godrej, Tata, Hero, etc., are drawing up plans toenter the fast-growing
organized retail market in India. The international players currently in India
includeMcDonalds, Pizza Hut, Dominos, Levis, Lee, Nike, Adidas, TGIF, Benetton,
Swarovski, Sony, Sharp, Kodak,and the Medicine Shoppe. Global players are entering
India indirectly, via the licensee/franchisee route, sinceForeign Direct Investment (FDI)
is not allowed in the sector.Despite all these developments, the organized retail business
still comprises a small proportion of the total sizeof the Rs 9,00,00-crore ($200 billion)
retail sector. Retail business is growing at 5-6 per cent per annum. Thesize of organized
retailing was estimated around Rs 26,000 crore in 2004, about three per cent of the
total.However, it is now set to grow at 25-30 per cent per annum. In developed countries,
organized retailing makesfor over 70 per cent of the total business.Recently, the
Government announced its intention to open up the retail sector to foreign investment. It
is still,however, debating whether to allow 26 per cent or 49 per cent FDI in the sector.
Initially, the idea was to beginwith 26 per cent and then gradually liberalize it further.
However, since China moved from 49 per cent to 100per cent FDI in this sector last year,
the Commerce Ministry and the Prime Ministers Office (PMO) appear to beinclined to go
for 49 per cent FDI at one go, despite opposition from Left parties.Even as the
government is debating the level FDI in of retail, a number of foreign players, including
the worldslargest corporation, the $288- billion Wal-Mart Stores, Inc., have announced
their intention to enter India in abig way. With the impending opening up of the sector to
overseas investment, they are now keen on forays intothe sector in partnership with
multinational chains. According to industry analysts, as many as 20 big Indiancompanies
are working on plans to enter the sector in partnership with foreign investors.Despite all
these favourable developments, the Government appears to be still dithering in giving a
green signalto FDI in this sector in view of the opposition from Left parties. It is indeed
unfortunate that this issue ishanging fire for nearly four years now, even as the
government has allowed foreign investment in a number ofsectors including banking,
telecom and insurance. 331
6. Arun Kr. Singh et al / VSRD International Journal of Business & Management
Research Vol. 2 (7), 2012As of now, the Indian retail sector, largely due to its fragmented
structure, suffers from limited access to capital,labour and suitable real estate options. In
contrast, China, which allowed 49 per cent FDI in the retail sectorsince 1992, benefited
immensely with foreign players bringing capital and new technologies and growing
exportmarket for domestic products. At present, around 40 foreign retail players account
for almost 20 per cent of theorganized retailing in that country. India is tipped as the
second largest retail market after China, and the totalsize of the Indian retail industry is
expected to touch the $300 billion mark in the next five years from thecurrent $200
billion. The size of organized retailing is expected to touch $30 billion by 2010 or
approximately10 per cent of the total. Various retailers from across the word have been
visiting India over the past few monthswith a view to establishing their presence in a
market that is expected to witness exiting developments.On the contrary, the opening up
of the sector to FDI will lead new economic opportunities and there will bemore
employment generation. According to a policy paper prepared by the Department of
Industrial Policy andPromotion (DIPP), FDI in retail must result in backward linkages of
production and manufacturing and spurdomestic retailing as well as exports.The opening
up of retail to FDI should be designed in a such as way that many sectors - including
agriculture,food processing, manufacturing, packaging and logistics -reap benefits. It is
understood that the multinationalsthat invest in retail business in India would also source
Indian goods for their international outlets in a big wayand thus provide a boost to Indian
exports. Indian retail chains would get integrated with global supply chainssince FDI will
bring in technology, quality standards and marketing.According to the World Bank,
opening the retail sector to FDI would be beneficial for India in terms of priceand
availability of products. Experience everywhere has shown that organized retailing tends
to have a majorcontrolling effect on inflation because large organized retailers are able to
buy directly from producers at mostcompetitive prices. The scale of operation and
technology help organized retailers score over the unorganizedplayers, giving the
consumers both cost and service advantages.Government has opened up the real estate
sector by allowing 100 per cent FDI in the construction projects. Themove is expected to
attract foreign funds and new technology into the market. Second, Foreign Trade
Policy2005-06 has extended the benefit of the export promotion capital goods (EPCG)
scheme to the real estate sector.This is expected to tremendously boost the organized
retail sector by enabling it to create better and moderninfrastructure. Also, the extension
of concessional duty scheme for import of capital goods by retailers withminimum area
of 1,000 square metres and implementation of VAT will significantly help organized
retailing.5. ADVANTAGES OF FDI IN RETAIL5.1. Opportunities GaloreWhile it is
important not to lose sight of the local Mom and Pop shops, there is a distinct
opportunity for FDIin multi-brand retail. At the present moment, Indian companies are
exporting different types of products tonumerous retailers across the globe. There is a
large segment of the population which feels that there is adifference in the quality of the
products sold to foreign retailers and the same products sold in the Indian market. 332
7. Arun Kr. Singh et al / VSRD International Journal of Business & Management
Research Vol. 2 (7), 2012In view of the availability of higher disposable incomes for
Indians, there is an increasing tendency to pay forquality and ease and access to a one-
stop shop which will have a wide range of different products.If the market is opened,
then the pricing could also change and the monopoly of certain domestic
Indiancompanies will be challenged. In the eventual analysis, the consumers will benefit
in the form of potential lowerprices due to enhanced and, possibly, tough competition in
the market.5.2. Benefits for the FarmersPresumably, with the onset of multi-brand retail,
the food and packaging industry will also get an impetus.Though India is the second
largest producer of fruits and vegetables, it has a very limited integrated cold-
chaininfrastructure. Lack of adequate storage facilities causes heavy losses to farmers, in
terms of wastage in qualityand quantity of produce in general, and of fruits and
vegetables in particular. With liberalization, there could bea complete overhaul of the
currently fragmented supply chain infrastructure. Extensive backward integration
bymultinational retailers, coupled with their technical and operational expertise, can
hopefully remedy suchstructural flaws. Also, farmers can benefit with the farm-to fork
ventures with retailers which helps (i) to cutdown intermediaries ; (ii) give better prices to
farmers, and (iii) provide stability and economics of scale whichwill benefit, in the
ultimate analysis, both the farmers and consumers.5.3. Improved Technology And
LogisticsImproved technology in the sphere of processing, grading, handling and
packaging of goods and furthertechnical developments in areas like electronic weighing,
billing, barcode scanning etc. could be a directconsequence of foreign companies opening
retail shops in India,. Further, transportation facilities can get aboost, in the form of
increased number of refrigerated vans and precooling chambers which can help bring
downwastage of goods.5.4. Impact on Real-Estate DevelopmentRetail is closely
dependant on real estate as any retailer will require substantial spaces for setting up
business.Real estate in India has gone through a revamp due to the demand of high-end
retail malls and peopleschanging perception towards an enjoyable shopping experience.
Thus real estate can get a further facelift inIndia and receive more investment with the
opening up of FDI in multi-brand retail.6. DISADVANTAGES OF FDI IN
RETAILOpponents of the FDI feel that liberalization would jeopardize the unorganized
retail sector and would adverselyaffect the small retailers, farmers and consumers and
give rise to monopolies of large corporate houses whichcan adversely affect the pricing
and availability of goods. They also contend that the retail sector in India is oneof the
major employment providers and permitting FDI in this sector can displace the
unorganized retailersleading to loss of livelihood.1. The entry of large global retailers
such as Wal-Mart would kill local shops and millions of jobs. 333
8. Arun Kr. Singh et al / VSRD International Journal of Business & Management
Research Vol. 2 (7), 20122. The global retailers would collude and exercise monopolistic
power to raise prices and monopolistic (bigbuying) power to reduce the prices received
by the suppliers.Hence, both the consumers and the suppliers would lose, while the profit
margins of such retail chains would goup.3. It would lead to lopsided growth in cities,
causing discontent and social tension elsewhere.However, these arguments can be
overruled in the light of the ICRIER study conducted in India in 2008, whichshowed that
although unorganized retail suffered initially with the opening up of organized retail in
theirvicinity, this effect significantly weakened over time. The rate of closure of
unorganized retail shops in grossterms was found to be 4.2 % per annum, which was
much lower than the international rate of closure of smallbusinesses. Similarly, the rate of
closure on account of competition from organized retail was found to stilllower, at 1.7 per
cent per annum. This was achieved through competitive response from traditional
retailers andthrough improved business practices and technology up gradation.However,
the development of organized retail has the potential of generating employment for both
the skilledand unskilled sections of the population. The Government can protect small
retailers by restricting FDI to bepermitted only for stores having floor size greater than,
say, 2,000 square feet. Moreover, monopolies of largecorporate houses can also be
controlled by the Government by enforcement of strict regulations and, whereneeded,
through the Competition Commission of India which is empowered to evaluate abuse of
dominantposition.The foreign direct investment (FDI) in the Indian retail sector should be
allowed in a phased manner so that itcould serve the purpose of much-needed capital and
bring boom in the sector, according to Confederation ofIndian Industry (CII) Chairman
Kishore Biyani.1. FDI should be gradually allowed first in relatively less sensitive sectors
like garments, lifestyleproducts, house ware and entertainment."2. Alternative funding
mechanisms and investment opportunities should be considered like FIIs andventure
capital in the primary market, besides FDI. Hence they should be legalized and
encouraged in theprimary market.3. Industry needs time for capital formation, which
would take at least two-three years.The gradual inflow of FDI should not be a hindrance
for the growth of the retail sector.Goals:1. To serve the purpose of much needed capital
and bring a boom in this sector.2. To enhance the backend infrastructure. 334
9. Arun Kr. Singh et al / VSRD International Journal of Business & Management
Research Vol. 2 (7), 20127. WHETHER FDI IN RETAIL SHOULD BE ALLOWED IN
INDIA?Three arguments are generally extended against allowing FDI in the retail sector.
First, this will prevent thegrowth of domestic organized retail industry. Second, it will
result in closure of small retail stores, the so-calledmom-and-pop stores and third, that it
will disrupt the social community and the given way of life. The firstargument is passes
simply because with the entry of Reliance, Tatas and other large domestic players
thedomestic retail industry has surely come of age. These corporate dont need
protection. Actually, if these infantsare protected any longer they have good chances of
becoming delinquent adults. Soon enough, monopoly rentswill begin to accrue and bad
habits will get entrenched and it will then be more difficult to open the sector.Domestic
players have the best locations anyway and a clear head start. The equity argument does
not have solidempirical basis. As the ICRIER study on the same subject has shown,
liberalization of retail raises overalleconomic welfare and does not result in loss of
employment. Some restructuring will take place but localmarkets will not close down. As
the entry of Haldiram has not led to the demise of Nathus and Agarwalmishthan
bhandars. Both can coexist as they fulfill different needs and serve different clientele.
Organizedretailing generates additionality of demand by reducing costs, lowering prices
and also improves returns toproducers by eliminating unnecessary intermediaries. The
third argument has greater substance. Malls couldlead to greater urban anonymity and a
complete break down of the bazaar culture and the disappearance of thedown town
space that has its own charm. But in France, Germany, the Nordic countries and also
other parts ofEurope, experience has shown that local communities can thrive if they are
empowered and involved in urbanplanning. Organized retail does not necessarily result in
the dreaded mid-west. So FDI in retail improves growthprospects, does not harm equity
and discourages monopoly rents and therefore should be allowed.8. CURRENT
REGULATORY FRAMEWORKThe regulatory regime for the existing homegrown
retailers is quite exhaustive with as many as 40 licenses andpermissions required to be
obtained by the retailer from diverse authorities, depending on the nature of activity.For
example, a multi-brand retailer selling food and perishable items has to have a prevention
of foodadulteration license under the Prevention of Food Adulteration Act, a weights &
measures license underWeights & Measures Act for regulating the weights and measures
and labels on the food products sold, alongwith an agricultural produce marketing
committee license under the Agricultural Produce Marketing CommitteeAct for selling
fruits and vegetables. If a retailer decides to launch a store in more than one state then
thenumber of licenses will multiply accordingly. Therefore, an entity establishing retail
stores across India willhave to face enormous licensing obligations in each state of
operation. This too acts as a deterrent.As the government has opens up the sector to FDI,
in addition to the regular operating licenses, chances are thatthe foreign multi-brand
retailers will have to seek investment approvals as well from the central regulator
which,at present, is the Foreign Investment Promotion Board. With the passage of time,
the expectation would be thatthe multitude licenses across different states would be
reduced and (possibly) homogenized.9. FUTURE SCOPEThe sentiment towards 100
percent FDI in retail sector is gathering pace. Currently, the UPA has a majority inthe
house and it seems quite possible that they will be able to pass the bill, making FDI in
multi-brand retailing, 335
10. Arun Kr. Singh et al / VSRD International Journal of Business & Management
Research Vol. 2 (7), 2012a reality. Moreover, with state governments like Punjab
working with modern retailers in furtheringimprovement of trade, there is a possibility
that support will flow in from other state governments as well.However, the opposition
led by the BJP is not in favour of this move and has presented a report recently to
theParliament recommending a complete ban on FDI in retail.The proposed FDI norms
will open up strategic investment opportunity for global retailers, who have beenwaiting
to invest in India. This may have a significant impact on the current arrangement of
foreign players.This policy will require investment from retailers in areas of supply chain,
especially for perishable products,thus helping farmers to get better income leading to an
inclusive growth in the country. Given the large numberof SKUs that retailers stock
Small and Medium Enterprises (SME) sector is also set to gain from this move dueto
preference given by retailers to private label brands. The move will also encourage
smaller suppliers to taketheir products to a national platform that they could not
previously manage due to lack of an organised supplychain of their own. This policy will
also open up avenues for attracting, developing and retaining talent.Contract
manufacturers would also benefit from these policy changes. With the global economy
still recovering,investment in India is lucrative to a retailer attributable to strong
consumerism, rising disposable income,growing middle class population, favorable
macro and micro economic indicators supplemented by a stablegovernment.10.
CONCLUSIONIn the final analysis, for India, FDI in multi-brand retail should be
seriously considered by the government and,as with many other sensitive sectors (like
defence); a gradual opening up could be made possible. Despitecountry wide speculation
on the plight of various Stakeholders, trading associations, politicians, etc. have
givenvarious arguments for and against FDI in retailing. However, such arguments are
largely based on perceptionand there has not been serious academic research in this
area.India needs to take a lesson from China where organized and unorganized retail
seem to co-exist and growtogether. Further, Indias local enterprises will potentially
receive an up gradation with the import of advancedtechnological and logistics
management expertise from the foreign entities.In our view, the government has an
opportunity to utilize the liberalization for achieving certain of its owntargets: improve
its infrastructure; access sophisticated technologies; generate employment for those keen
to work in this sectorFDI would lead to a more comprehensive integration of India into
the worldwide market and, as such, it isimperative for the government to promote this
sector for the overall economic development and social welfareof the country. If done in
the right manner, it can prove to be a boon and not a curse. 336
11. Arun Kr. Singh et al / VSRD International Journal of Business & Management
Research Vol. 2 (7), 201211. REFERENCES[1] Anonymous Retail Industry in India
http://www.cci.In/pdf/surveys_reports /indias _retail_sector.pdf.[2] Department of
Commerce, Government of India, 23-Feb-2005, Press Release on FDI in Organized
Retail to generate Employment, but should not displace ongoing Retail activities,
available at http://commerce.nic.in/PressRelease/pressrelease_detail.asp? id=1673.[3]
Economic Survey (2007-08), Ministry of Finance, Government of India, New Delhi,
2008 available at http://indiabudget.nic.in/es2007-08/ economy.html.[4] ICRIER study,
Impact of Organized Retailing on the Unorganized Sector May 2008
fromhttp://siadipp.nic.in/policy/icrier_report_27052008.pdf[5] Joseph, Mathew and
Soundararajan, Nirupama (2009), Retail in India: A Critical Assessment, Academic
Foundation, NewDelhi.5[6] Kearney A.T., (2006) Retail in India Getting organized to
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