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ZENITH International Journal of Business Economics & Management Research
Year : 2013, Volume : 3, Issue : 3
First page : ( 257) Last page : ( 265)
Online ISSN : 2249-8826.

Foreign direct investment in multi-brand retail opportunities, challenges and threats

Ramesh R.

Assistant Professor, Department of Management Sciences, Balaji Institute of Management Sciences, Laknepally (V), Narsampet, Warangal, A.P

Online published on 18 June, 2013.

Abstract

Multi-brand retail comes in different formats like supermarket, hypermarket, compact hyper and the ubiquitous mall. The success of this sector is best reflected in the fact that the shares of retail companies are well represented in all top mutual funds. However, the sector is constrained by several factors, primarily by a highly restrictive licensing regime and overall poor infrastructure. These factors have contributed to restrict organized retail to only about 3% of the total retail industry. This article examines the opportunities, challenges and threats of FDI in multi-brand retail in India.

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Keywords

Organised retail, sunrise sector, globalisation, foreign direct investment, strategic issues and prospects.

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