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Policy of foreign direct investment liberalisation in India: implications for retail sector

Author

Listed:
  • Utsav Masharu

    (Leeds Beckett University)

  • Muhammad Ali Nasir

    (Leeds Beckett University)

Abstract

This study has analysed the impact of liberalisation of Indian economy and FDI policy on the retail sector since its implementation in the 1990s. It also further analyses sub-categories by investigating its impact on the unorganised retail sector and the flow of FDI in single-brand retail and multi-brand retail sectors. A comprehensive and critical review of the existing evidence on the subject was carried out, and descriptive statistical analysis of data from 1991 to 2013 was performed which leads to conclude that the policy of FDI liberalisation has proved to provide diversification and sustainable development to the Indian economy and specifically retail sector which is considered to be one of the significant pillars of economy. Furthermore, for continuous growth of the economy, it seems vital to encourage more investment in other sectors by liberalising the restrictive policies.

Suggested Citation

  • Utsav Masharu & Muhammad Ali Nasir, 2018. "Policy of foreign direct investment liberalisation in India: implications for retail sector," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 65(4), pages 465-487, December.
    • Handle: RePEc:spr:inrvec:v:65:y:2018:i:4:d:10.1007_s12232-018-0306-y
    DOI: 10.1007/s12232-018-0306-y
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    References listed on IDEAS

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    1. Jatinder Singh & Shashi Ranjan Jha & Yadawendra Singh, 2011. "Impact of Liberalization on Foreign Direct Investment: An Empirical Analysis of Indian Economy in Post-Reform Period," The IUP Journal of Public Finance, IUP Publications, vol. 0(3), pages 23-33, August.
    2. Santra, Swarup & Bagaria, Nidhi, 2014. "Foreign direct investment in retail market in India: some issues and challenges," MPRA Paper 53521, University Library of Munich, Germany.
    3. Thomas Reardon & Julio A. Berdegué, 2002. "The Rapid Rise of Supermarkets in Latin America: Challenges and Opportunities for Development," Development Policy Review, Overseas Development Institute, vol. 20(4), pages 371-388, September.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Siddhartha Pradeep, 2022. "Role of monetary policy on CO2 emissions in India," SN Business & Economics, Springer, vol. 2(1), pages 1-33, January.

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    More about this item

    Keywords

    FDI; Trade liberalisation; Transition economies; Retail sector; Organised and unorganised retail; Single-brand retail and multi-brand retail;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
    • L88 - Industrial Organization - - Industry Studies: Services - - - Government Policy

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