The FDI permit for multi brand retail trading in India - Green signal or Red signal

The Indian consumers have undergone a remarkable transformation. Just a decade or two ago, the Indian consumers saved most of their income, purchased the bare necessities and rarely indulged themselves. Today, armed with a higher income, credit cards exposure to the shopping culture of the west and a desire to improve their standard of living, the Indian consumers are spending like never before. Organized retail with its variety of products and multitude of malls and supermarkets is fueling their addiction. Their new mentality, in turn, is fueling the growth of organized retail in India. This paper firstly speaks about the global giants’ entry to India and their myths and realities. The second part shows the status of organised food retailing in India with SWOT Analysis and highlights on farmer’s issues towards FDI in multi brand retailing. The third part overviews the two faces of retail sector – Challenges and key success factors. The fourth part reviews the impact of Organized Retailing on the Unorganized Sector. The last part reveals the recommendations before allowing FDI in Multi brand Retailing.