FDI in Retail Sector India : Opportunities, Concerns and Policy Suggestions

India is often, rightly called as the land of villages. Due to the high density of retail outlets in the world, India, sometimes, is also referred as land of small shops. India has 1.5 crore retail shops against the US 9 lakh shops catering to more than 14 times of retail market in India. Post globalization, the retail sector in India is hailed as one of the sunrise sectors in the economy. Retail sector is the largest private industry in India. It employs around 4.2 crore people which is 9% of the total work force in India. It contributes to 10% of its GDP. The retail sector is growing at a very faster phase as the total Private Consumption Expenditure of Indians during post liberalization is growing very fast. Since 2005 every year it is growing at 14% per annum and present it is worth $450 billion. AT Kearney, the well-known international management consultancy rightly pointed out that globally, India is the 'second most attractive retail destination' among thirty emergent markets. The Price water house coopers have ranked India among the six most attractive destinations for investments in retailing alongside China, Turkey, Thailand, Malaysia and Hungary. Hence the world retail giants are eyeing their share in Indian retail market