The Comparative Study of the FDI in India and China in Retail Sector

Abstract

Every economy across the globe is developing at a rapid pace. Offshore investment opportunities have not only transformed some of the business sectors like infrastructure, technology, media, and telecommunication, but it has also brought some dynamic changes in the life style and shopping preference of the consumers. One such sector that has diverted the attention of the mass is the retail sector. Over the last few years, retail sector has experienced drastic transformation. Some countries are well developed while others are emerging in the retail sector. India and China are among the top developing countries attracting huge foreign direct investment. China follows open investment policy and has liberalized the investment for foreign players while India adopted conservative investment policy with strong government involvement. Retail growth in India is very slow as compared to China. Therefore, this chapter attempts to highlight the economy of India and China and has compared some of the parameters of the economy to reflect the difference in the growth in India and China.