International Journal of Economics and Finance; Vol. 6, No. 11; 2014 ISSN 1916-971X E-ISSN 1916-9728 Published by Canadian Center of Science and Education 9 Impact of FDI in Retailing: An Empirical Analysis on Perception of Unemployed Youth on Employment Opportunities in India Desti Kannaiah 1 & V. Selvam 2 1 Faculty, School of Business, James Cook University, Singapore 2 Professor of Commerce, SSL, VIT University, Tamil Nadu, India Correspondence: Desti Kannaiah, Faculty, School of Business, James Cook University, Singapore. E-mail: kannaiah.desti@jcu.edu.au Received: July 31, 2014 Accepted: August 29, 2014 Online Published: October 25, 2014 doi:10.5539/ijef.v6n11p9 URL: http://dx.doi.org/10.5539/ijef.v6n11p9 Abstract Purpose: In recent years, numerous researches have been conducted on Foreign Direct Investment (FDI) from various perspectives. From a survey on FDI literatures of infrastructure, construction, and service sectors perspective, there are some studies based on the FDI in retailing in single and multi brand made by scholars. However, the perception of unemployed youth on impact of FDI in retailing about employment opportunities in India is yet to be explored. This article is therefore timely and fills the gap in FDI in retailing literature. In a nutshell, the existing organized retailers show a turnover in the range of $15 billion to $18 billion, leading to the creation of about one million direct and indirect jobs. This implies that Foreign Direct Investment (FDI) retailers need to generate $60 billion of turnover in India; it contributes about 14% to India’s gross domestic product (GDP) and is growing at the rate of 15%. The retail sector would guess that in three years it would be a Herculean achievement if FDI leads to the creation of even 0.3 to 0.4 million net additional jobs. In India the pay scales for organized retail shopping mall employees are getting nearly a monthly salary of Rs.5,750 to Rs.6,250 compared to others unorganized retail shopping mall employees, they get a monthly salary of Rs.4,000 to Rs.4,500. It is very interesting to note that the multi-brand retail FDI policy in other countries like China approved 100% limit that reflects employment opportunities rose from 28 million to 54 million from 1992 to 2001. Based on the above backdrop, an attempt has been made in this paper to study the impact of FDI in retailing with the perception of unemployed youth on employment opportunities in India. Design/Methodology/Approach: Primary data using convenient sampling through questionnaire and interview method as well as secondary data from wide range of literature and various journal publications had been utilized. Frequency distribution, percentage analysis and one way ANOVA were used to test the objectives of the study. In order to test the reliability of the scale, the researcher applied Cronbach’s Alpha (CFA) to measure the internal consistency of the variables. Findings: The findings of the study on impact of FDI in retailing emphasized that the educated youth will get more good and decent employment opportunities in India. Originality/Value: Impact of FDI in retailing: An empirical analysis on perception of unemployed youth on employment opportunities in India is the original work of the authors. Keywords: foreign direct investment, retailing, employment opportunities 1. Foreign Direct Investment: An Overview Liberalization of economy has opened a new outlook for the development of FDI in the Indian perspective. The introduction of foreign capital by the investors has been successful in bridging over the gap between requirement of retailers and retail sector. The merit is that customers of almost all branded categories appear satisfied with the quality of services made available to them. A paramount priority to the changing expectations of customers and an equivalent tailoring of financing inputs in tune with the changing business environment have awfully been helpful in increasing the market share of the investors. A transcendental priority to creativity while developing the financial resources has considerably helped them in sensitizing the impulse of prospects. According to A. T. Kearney (2011), the well known International Management Consultancy, recently ranked India as globally, the ‘second most attractive retail destination’ from among thirty emergent markets. It reported that the Indian retail