Indian Retail Sector FDI Regime - Law & Policy - Issues , Analysis and Suggestions

Abstract

FDI in retail trading, particularly multi brand retail trading (MBRT) remains one of the most contentious policy issues. This article goes beyond the MBRT sector and seeks to examine FDI in single brand product retail trading (SBRT) policy as well, with takeaway lessons. At the outset, some key pertinent issues are identified, after which the adequacy of the current FDI regime to effectively address them is analysed. The law and policy implications (the ex-ante analysis) will be highlighted by anticipating future problems due to the restrictions placed in FDI in both these sectors. This paper also suggests normative improvements to the current retail FDI policy, proposing creative solutions for each of the law and policy problem discussed, thereby enhancing efficacy of the retail FDI policy in achieving its objectives. This paper provides a critical analysis so that necessary policy improvements can be systematically carried out, keeping in mind the interests of the stakeholders and the nation as a whole.