Proposed FDI in Multi-Brand Retailing:Will it heat the Indian unorganized Retail Sector?

Retail industry of India is divided into two sectors viz. organized and unorganized sectors. The Govt. of India was forced to put on hold FDI in multi-brand retail by several political parties. Presently, for single brand retailers, 51 per cent FDI is permitted. The problem arises whether opening up of FDI in multi-brand retail will create problems or provide opportunities for local retailers. People those who oppose to the FDI in multi-brand retail, feel that FDI will pose some threats before the unorganized retail sector and will adversely impact the small retailers, farmers and consumers. Foreign direct investment in multi-brand retail will start a better integration of Indian economy into the global markets. There is no reason to worry by small retailers and shopkeepers may get displaced. This article examines the prospects of FDI in multi-brand retail in India.