Evaluating the Impact of Foreign Direct Investment in Retail on Economic Growth and Consumer Perceptions

Author:Mohd Mohsin Qureshi*, S.K.S. Yadav

Abstract:
This study examines the impact of Foreign Direct Investment (FDI) in retailing on economic growth and consumer value in India. With the liberalization of the economy in the 1990s, FDI has played a crucial role in transforming India’s retail sector by introducing modern retail formats, enhancing product variety, and improving pricing strategies. By examining the fluctuations in the retail market and FDI inflows, the research investigates how external investments influence consumer value, economic growth, and the accessibility of high-quality goods and services. The analysis reveals that FDI in retail plays a significant role in driving economic growth, lowering prices, increasing product variety, and providing access to global brands. However, challenges such as policy uncertainties, global economic shifts, and market corrections affect FDI inflows. Through the study, consumer perceptions are analyzed, highlighting the varying impact of FDI across different education levels. The findings underscore the need for policy stability, improved infrastructure, and strategic efforts to boost investor confidence. The study offers valuable recommendations for fostering a conducive environment for sustainable growth in India's retail sector and attracting consistent FDI inflows. The insights derived contribute to understanding India’s position in the global retail market and its potential to become a hub for international investments.

Keywords:FDI, Retail, Economic Growth, Consumer Value.

DOI:10.46333/ijtc/13/2/5

International Journal of Trade & Commerce (Vol: 13 Issue:2)