Evaluating the Need for FDI in Retail Based on the Retailers PerformanceYear: 2016

Authors: A Gandhi, R Shankar
Journal: Annual Research Journal of Symbiosis Centre for Management Studies,
Publication date: 2015
Publisher: SCMS
URL: click here


The paper aims to do a benchmarking study of Indian retailers using Data envelopment Analysis (DEA). The efficiency of 18 retailers is ascertained using DEA models on the basis of the inputs that they use and the outputs that they produce. The study suggests possible potential improvements that can be made by the retailer to the inputs like cost of labor and capital employed to move towards the efficiency frontier. The study further evaluates the need for Foreign Direct Investment (FDI) in India, in light of the current level of efficiency of the Indian retailers. Implications of the study are discussed.