Drawback of (FDI) in Retail:-
ü Would give rise to cut-throat competition rather than promoting incremental business.
ü Promoting cartels and creating monopoly.
ü Increase in the real estate prices.
ü Marginalize domestic entrepreneurs.
ü The financial strength of foreign players would displace the unorganized players.
ü Absence of proper regulatory guidelines would induce unfair trade practices like Predatory pricing.
Thus it can be said that this investment boom could change the face of Indian retail by offering quality goods at lower prices to the consumers. In addition to this, the presence of global retailers will further enhance exports from India as they would also source Indian goods for their international outlets in a big way leading to a remarkable increase in Indian exports.
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