Retail FDI in India: A Confirmatory Factor Approach

Retailing Industry in India is becoming a promising sector due to increasing awareness and brand consciousness among people across different socio-economic classes. Retail FDI in India is allowed in single brand retail and multi brand retail (MBRT)but subjective to some conditions. Therefore, the present study aims to analyze the issues of FDI in retail from the perspective of the academic community by developing a model taking into the consideration the different aspects of the FDI and its implications. Factors extracted through exploratory factor analysis are perceived benefits, foreign retailer’s attitude, perceived risk, retail FDI and GDP growth and foreign retail policy. Thereafter, the factors are confirmed through confirmatory factor analysis which demonstrated good fit statistics. Perceived benefits and GDP growth are considered as two prominent factors supported with the highest factor loadings. The unidimensionality, reliability and validity of hypothesized model are hereby tested and confirmed through suitable statistics.