Impact of FDI in Retailing: An Empirical Analysis on Perception of Unemployed Youth on Employment Opportunities in India

  •  Desti Kannaiah    
  •  V. Selvam    


Purpose: In recent years, numerous researches have been conducted on Foreign Direct Investment (FDI) from various perspectives. From a survey on FDI literatures of infrastructure, construction, and service sectors perspective, there are some studies based on the FDI in retailing in single and multi brand made by scholars. However, the perception of unemployed youth on impact of FDI in retailing about employment opportunities in India is yet to be explored. This article is therefore timely and fills the gap in FDI in retailing literature. In a nutshell, the existing organized retailers show a turnover in the range of $15 billion to $18 billion, leading to the creation of about one million direct and indirect jobs. This implies that Foreign Direct Investment (FDI) retailers need to generate $60 billion of turnover in India; it contributes about 14% to India’s gross domestic product (GDP) and is growing at the rate of 15%. The retail sector would guess that in three years it would be a Herculean achievement if FDI leads to the creation of even 0.3 to 0.4 million net additional jobs. In India the pay scales for organized retail shopping mall employees are getting nearly a monthly salary of Rs.5,750 to Rs.6,250 compared to others unorganized retail shopping mall employees, they get a monthly salary of Rs.4,000 to Rs.4,500. It is very interesting to note that the multi-brand retail FDI policy in other countries like China approved 100% limit that reflects employment opportunities rose from 28 million to 54 million from 1992 to 2001. Based on the above backdrop, an attempt has been made in this paper to study the impact of FDI in retailing with the perception of unemployed youth on employment opportunities in India.

Design/Methodology/Approach: Primary data using convenient sampling through questionnaire and interview method as well as secondary data from wide range of literature and various journal publications had been utilized. Frequency distribution, percentage analysis and one way ANOVA were used to test the objectives of the study. In order to test the reliability of the scale, the researcher applied Cronbach’s Alpha (CFA) to measure the internal consistency of the variables.

Findings: The findings of the study on impact of FDI in retailing emphasized that the educated youth will get more good and decent employment opportunities in India.

Originality/Value: Impact of FDI in retailing: An empirical analysis on perception of unemployed youth on employment opportunities in India is the original work of the authors.

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