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Abstract
Foreign Direct Investment (FDI) has always been a matter of controversy in India. Whether FDI in Retail sector in India will be beneficial or harmful in the long run is a matter of strong debate among the economists and political thinkers. It is uncertain to predict the actual long run effects of FDI in the retail sector as well as the whole economy of India. India is the second most important FDI destination in the world in 2010-2012 after China. The recent changes brought in the retail sector by the government have made the retail sector to have large number of retailers for India.
On 20th September, 2012 the Government of India has approved 51% FDI in Multiband retail and 100% (revised) in Single Brand retail sector through Government Route with some riders. Govt. of India is firm to implement the FDI in multi Brand Retail’ Agitation and Bandhs have been called by some political parties. Retail is one of the largest sectors of Indian economy the unorganized retail sector in India occupies 97% of the retail business and the rest 3% is contributed by the organized sector. The unorganized retail sector contributes about 13% to the GDP and absorbs 6% of our labour force.