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The paper examines the effect of foreign direct investments on the Indian retail sector. The inflow of foreign direct investments into India's retail sector has growth and boosted the Indian country's GDP. In order to research and assess the effect, government policy and other determinant were also discussed. India's retail industry is booming, with plenty of opportunities. Investing possibilities Until 2006, there were limits on foreign direct investment inflows. The Indian retail sector in India is a rapidly expanding market with numerous investment opportunities. Until 2006, there were limits on foreign direct investment inflows. Since 2006, however, the government has made a positive shift in policy, encouraging foreign companies to invest in the country. India is a great place to invest in and own. The paper looks at how India's retail industry is growing, as well as tax incentives and other factors that affect foreign direct investments inflows. It also looks at the obstacles and threats that allowing a foreign company to invest in India poses to Indian retailers (small, medium, and large).

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