Foreign Direct Investment in Retail Trade

Employment is one of the key indicator of national development and prosperity. Aim of every government is to create more employment opportunities, avenues and conducive work environment for its people. Government of India in its decision to allow foreign direct investment in retail too visualizes creating ten million jobs in retail domain. The argument forwarded by government and others favoring foreign direct investment in multi brand retail trade believes that both modern retail trade (big chains) powered by foreign investments (funds) and traditional retail (unorganized and small) can co-exists together in competitive environment. The competitive environment will also create ten million jobs in retail domain in addition to existing jobs in current retail sphere of India. Job addition in retail sphere is questioned by several critiques, thus needing an answer. Though government has vaguely projected a figure of ten million additional employment but it has not clearly defined how and quality of employment.