Changing Pattern of Foreign Direct Investment in India during Post Reform Period

Abstract

This paper delves into the evolving landscape of Foreign Direct Investment (FDI) in India's retail sector during the post-reform period, spanning from the early 1990s to the present day. Through an extensive review of literature and empirical analysis, it sheds light on the intricate interplay between policy reforms, market dynamics, and economic growth in shaping FDI patterns. It underscores the significance of FDI in bridging the gap between domestic savings and investment, thereby fueling overall capital formation. Through empirical data analysis, the paper provides insights into the changing patterns of FDI inflows, sector-wise distribution, and geographical preferences of investors. Furthermore, the paper delves into the challenges and opportunities associated with FDI in India's retail sector. It highlights regulatory hurdles, such as local sourcing requirements and complex tax structures, as significant impediments to foreign investors. In conclusion, the paper underscores the pivotal role of FDI in driving economic growth and sectoral development in India. It advocates for continued policy reforms and initiatives to attract foreign investment while addressing regulatory bottlenecks. By providing valuable insights and recommendations, the paper aims to inform policymakers, investors, and stakeholders about the evolving landscape of FDI in India's retail sector.