ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Need for Caution in Retail FDI

Though the government has been considering opening up the retail business to foreign direct investment for some time, it must first examine the constraints faced by traditional retailers in the supply chain and institute a package of safety nets as Thailand has done. India should also draw lessons from the restrictions placed on the expansion of organised retailing, in terms of sourcing, capital requirement, zoning, etc, in other Asian countries.This article comments on the retail FDI report that was commissioned by the department of consumer affairs and suggests the need for a more comprehensive study.

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