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Promoting organized retail in India was initiated by the Government of India in 2006 by opening up single brand retailing to FDI. The international players are allowed to enter into the Indian retail market through five entry routes Viz., franchising, joint venture, manufacturing, cash and carry wholesale trading and distribution. The value of the retail segment is expected to grow from an estimated INR 22.53 trn in 2012 to INR 27.73 trn by 2016.This paper seeks to discuss about the pros and Cons of “Wal-Mart effect” on the Indian economy by justifying the economic rationale for the need for FDI in retail sector. It also focuses on the externalities and the spillovers that would be experienced in the Indian market due to liberalization of FDI in retail sector and stresses upon certain preconditions that have to be recommended by the DIPP for the smooth functioning of the economy

Fine-tuning the retail sector in India and the preconditions for FDI in Retailing