Machewad Niranjana, Todkar Shivkanya

ABSTRACT

Introduction Asian Journal of Management Sciences 02 (03) 2014; 108-110. The Indian government has opened doors of FDI in the retail sector slowly and gradually. In the year 1995, the World Trade Organizations General Agreement on trade in services. Wholesale and retailing came in to effect. In the year 1997, FDI in cash and carry (whole sale) with 100 percent rights was allowed under government approval route whereas in the year 2007 FDI in cash and carry (whole sale) with 100 percent rights was brought under automatic route and up to 51 percent investment was permitted in single-brand retail subject to certain conditions. Later, 100 percent FDI in single brand retail was permitted with an added constraint that sourcing must be 30 percent local in December 2011. Further the decision to allow up to 51 percent investment in multi brand retail was originally cleared by the cabinet in November 2011, but it was withdrawn on account of the disagreements within the ruling united progressive Alliance government.