The Economic Survey 2008-09 recommended enhancement of Foreign Direct Investment (FDI) in multi-brand retail cap in sensitive sectors like insurance, defense and modern retail. That opening of retail would drive economic growth was the basis of the recommendations, although this subject did not find favor from the government allies. The survey said a beginning could be made in food retailing. Initially, FDI could be allowed, subject to the setting up a modern logistics system, perhaps jointly with other organized retailers. India at present allows 51% of FDI in wholesale cash-n-carry, but has not allowed FDI in multi-brand retail.

A recent parliamentary committee is opposed to the entry of large Indian corporates in the business of modern (organized) retailing, particularly those who sell fruits and vegetables and grocery and those who use malls to sell these products. According to the committee's findings, modern retailing results in job losses and forces small traders to go out of business. This, though, is at complete variance with the findings of an experts panel (ICRIER) appointed by the Commerce Ministry to go into the impact of big retail on conventional retailers (also referred to as Kiranas or `mom-n-pop' stores).

The Analyst Magazine, Foreign Direct Investment, FDI, Indian Retail Industry, Economic Growth, Multi-Brand Retailers,l Conventional Traders, Technological Upgradation, Human and Natural Resources, Indian Entrepreneurs, Technological Upgradation, Optimal Utilization, Food Retailing.