FDI can supplement and complement the Indian industry and make
it globally competitive, open up export markets and provide access
to international quality goods and services. It can raise resources
through technological up gradation, optimal utilization of human
and natural resources, and backward and forward linkages.
There are promising fields like the food processing sector in
the country. Foreign retail giants are willing to buy processed
food from the country. Foreign direct investment (FDI) in retail
space, specialized goods retailing like sports goods, electronics
and stationery is also being contemplated. The government has
to walk a tightrope to ensure a `level playing field' for everyone.
It is hoped that the Indian retail industry will integrate the
unorganized retail market with the organized one. The relaxation
of the FDI ceiling has opened the doors for India's largest FDI
in the real estate sector. Groups showing interest in India include
major Indian and international companies. Foreign players have
been keenly watching the development. Opening up of the Indian
economy provided them with new opportunities. The changed set
up has instilled great confidence in them. Since the year1994,
NRIs have gone on to invest a sizeable amount, of which a big
chunk has found its way into the property market. The market got
a lot of exposure and has shown some degree of maturity.