FDI in India - Its Impact on Entrepreneurial Ventures in India

8 Pages Posted: 20 Mar 2017

See all articles by Sabiha Fazalbhoy

Sabiha Fazalbhoy

Symbiosis Centre For Management Studies

Date Written: January 1, 2013


This Paper intends to examine the impact of FDI in India on Entrepreneurial Ventures, both existing and upcoming. As a part of the Research Methodology, Data was gathered by a survey conducted on two existing entrepreneurial firms and one upcoming one, using a Questionnaire method. The Questionnaire was composed of both factual and perceptional questions. Utilizing the collected data this study shows that the sampled Entrepreneurial firms are high on Innovation and thereby a hypothesis was made for the same.The firms selected were based on their performance, innovation, invention, risk taking factors. The conclusion establishes a relationship between the government policies and the performance of Entrepreneurial units. If the government policies are framed to promote entrepreneurial ventures then the impact would be positive, however if the government policies are more favorable towards FDI then this would lead to tarnishing the upcoming entrepreneurial ventures in the coming years, as the business giants would absorb these new and tiny ventures and constrain their development process. A recent article published in the Times of India also states that the government must put a check and see the constitutional validity of the centre’s decision to allow foreign direct investment in multi brand retail. A Supreme Court bench also questioned the government whether they had received any proposals since the parliament approved the policy decision about six to seven weeks ago. This was justified by the government by stating that the foreign direct investment in retail would take some time as it is a part of series of reforms that would transform the country’s investment scenario to make it lucrative enough for foreign investors and importantly for consumers and small traders and entrepreneurs. Finally the Supreme Court also asked the government to spell out safeguards put in place to protect small traders from a possible onslaught of multinationals in the future.

Keywords: FDI, Entrepreneurial ventures, innovation, Supreme Court, government policy, questionnaire

Suggested Citation

Fazalbhoy, Sabiha, FDI in India - Its Impact on Entrepreneurial Ventures in India (January 1, 2013). Available at SSRN: https://ssrn.com/abstract=2934774 or http://dx.doi.org/10.2139/ssrn.2934774

Sabiha Fazalbhoy (Contact Author)

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