Role and growth of direct forein investment in india after 1991: Implication of financial crisis to India
Rajesh Kumar Dikshit
Developing economies started to feel the impact later, but the worst is yet to come. Services contribute highest in the Gross Domestic Products (GDP) among all sectors in India. It is observed that Indian services sector attracted the FDI (FDI) significantly in comparison to other sectors. Recent Global economic crisis costs two to three years growth for nearly all developed and developing nation except emerging economies inclusive of India. Foreign investment has always been constantly growing in the retail Sector. This is primarily due to the reason that foreign investors have always viewed the Indian Market as a potentially profitable market in addition to housing the second largest population in the world. The opening of the retail sector offers tremendous opportunities to the foreign Investors and gives them access to effectively more than a billion customers. This paper analyses what constitutes FDI in services in India, will put light on the advantages, disadvantages and challenges faced by FDI in retail in single and multi-brand.