Business Models for Entry of FDI in Indian Retail Market and its Impact

Retailing occupies a pre-eminent position in the economies of all modern societies. The business of retail in India has seen significant changes in the last few years. We have seen the emergence of new formats, entry of big domestic players, the application of global concepts and constructs albeit with modifications to suit the Indian environment. One of foremost issue, which is hot up once again, is discussion on gateways of entry of foreign direct investment in retail and its impact. This debate invites mixed reactions-proponents articulate that it will enhance exports and create jobs while opponents argue that the advent of retail giants will pose enormous risks. The focus of this article is on identifying the business models for entry of foreign direct investment (FDI) and presents analysis of the role of FDI in Indian retail market.