The Impact of FDI in Retail on SMEs Sector with Special Reference to Malappuram District

  • Aslam Muhammed Yaseen.C.K Majlis Arts and Science College, Valanchery, India
  • Sreejith. P Majlis Arts and Science College, Valanchery, India
Keywords: Development, FDI policies, Globalisation, Government policies, Indian economy, SMEs.


A fairly liberal foreign direct investment policy is the path for any country to globalization and through that to a world class development. An economy should be flexible enough to welcome international business players to invest high in that economy. Entrance of international brands to a country improves the health of an economy and it also increases the standard of living in that country. Even though India resisted FDI earlier, later realized it’s a necessity in the effort of becoming a developed country. When India liberalized their FDI policies in 1990s, most had a concern that whether it will affect our domestic businesses. Even though there are Indian companies who failed to compete with foreign ones, totally our liberalized FDI has been giving a win-win result till now. But, it is clear that Globalization has changed the face of our economy and the style of doing business in it. One of the area which Globalization had most influence was unarguably Small and Medium scale enterprises (SMEs). Growth of organized retailing and E-commerce has made both positive and negative effects on SMEs. For last 3 years, there have been several vital changes in FDI policy of India which liberalized the terms even more. We can expect the waves of those changes hitting the shore soon. In this current developing scenario, it is important to forecast the effects of those policies in our economy.In this article, the author investigates on the attitude of small and medium entrepreneurs on our new FDI policies.


Anuradha.A, Prabhu.R, (2014).Fine-tuningtheretailsectorinIndiaandthepreconditionsforFDIinretailing. IOSR journal of humanities and social science. 19(1).71-77
Baskaran A (2010), “The Impact of Foreign Direct Investment on Indian Economy”, Excel Books.
Direct Tax Laws (2010), “Guide To Foreign Direct Investments In India With FDI Policy Issued on 1st April 2010”, Taxmann Publications Pvt. Ltd.
G. Gopala Krishna Murthy (2007), “Foreign Institutional Investors – Indian and Global Scenario”, Icfai University Press, Hyderabad
H. S. Kehal (2005), “Foreign Investments in Developing Countries”, Palgrave Macmillan, New York
Jack L. Treynor (2007), “Treynor on Institutional Investing”, Wiley
Joseph Koshy (2006) “FDI in Retail sector” Copyright© 2006, Joseph and Joseph Law Offices
Kamal Garg (2010), “Foreign Direct Investments in India”, Bharat Law House Private Limited
Nitin Kansal, (2009), “FDI and FII in India” Available on the Internet at (
How to Cite
Yaseen.C.K, A. M., & P, S. (2017). The Impact of FDI in Retail on SMEs Sector with Special Reference to Malappuram District. International Journal of Marketing Research Innovation, 1(1), 1-7.
Research Paper/Theoretical Paper/Review Paper/Short Communication Paper