is FDIin retail trading a step towrds competitve market structure?give reason .please with explanation

Yes, FDI in retail will allow potential competitors from foreign countries to directly invest in their business operations in India. Foreign companies, being more efficient than Indian companies due to availability of better technology and sound financial support, will increase the competition in the Indian market to a great extent. To bear such competition, Indian firms would have to invest in technology and logistics operations so that the MNC's cannot capture the entire market share.

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