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

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

Rita Naraindas Khatri (H. R. College of Commerce and Economics, India)
DOI: 10.4018/978-1-5225-3026-8.ch008
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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.
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Objectives Of The Study

  • To study the economy of India and China.

  • To analyze the foreign direct investment in India and China.

  • To understand the FDI policy in retail sector in India and China.

  • To identify the factor responsible for the difference in the growth of the retail trade and compare the difference in the growth of retail business in India and China.

Research Methodology

The study is based on secondary data analysis only. In order to collect the data, the researcher has referred various reports on India- China retail developments like China retail report, India retail report, Ernst and young report, and Deloitte report on India China retail. Past research has also been reviewed by referring the article and research paper published by the research organization in order to find the strength and weakness of the economy. Data has also been collected from case studies, books, journals, newspapers and online databases and websites of DIPP (Department of Industrial Policy and Promotion), RBI (Reserve Bank of India) and FICCI (Federation of Indian Chambers of Commerce and Industry), Ministry of commerce of India and Ministry of Commerce of China.

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