India Allows FDI In Retail Sector? What possible fallouts you see?
November 29, 2011 1:19am CST
Last week, the Indian Government decided to liberalize foreign investment in retail. This is the biggest reform measure United Progressive Alliance government led by Congress has pushed since it's re-election. This had created a row with Opposition parties and some of ruling Congress members and allies openly showing their displeasure over the controversial govt move. While Indian Govt feels allowing FDI in retail sector will give much necessary fillip to Indian economy, opposition parties feel it will hurt trading community badly and there will be more unemployment. Do you think India Govt is right in allowing FDI in retail? Are opposition parties expressing genuine fears or just scoring brownie points? Share your views. Thanks.
29 Nov 11
No. More foreign money inflation further increases. cost of living will go up. Poor people will be affected more. This may give opportunity for rich to become further richer. USA and European countries will invest here to compensate for the lack of business in their countries. Serious thought should be had before allowing FDI in retail trade because it will affect lakhs of small traders. For India's majority i.e. poor people big shops are not approachable. In many families they buy rice for that particular day and oil,dhal for that occasion. For them FDI in retail will result in big loss of approachable shops for them.
30 Nov 11
I can see no positive outcome that would result from this decision. All I can see now is more inflation, value of rupee will now come even further down, increased prices of all basic necessities and products. This will do create jobs but only to a few hundred and not a vast majority. The gap will increase even further between the so-called shining India and poor Bharat. I really feel that instead of allowing FDI in retail sector so freely, there should have been more emphasis on production and agricultural industry, these would really sustain our economy in the long run, even though the growth may seem slower in the beginning.
29 Nov 11
As much as I have read and heard about FDI in the retail sector has been negative. The giant retail companies like Walmart sale cheaper product at start to cover market and after small competitors are gone they takes the prices to sky high.They can afford that because it is a malty million dollar company. They work with monopoly so after there are less competition they force farmers to give product at company's terms. They are making their products from cheaper countries like China so local industries are affected a lot and job's are affected in the country. This is what the current situation in U.S. and some of the other countries. So I don't see any benefits in allowing FDI in the retail sector. Even the superstores like big bazar , reliance fresh , etc.. don't sale products at cheaper rates hence they are buying them from direct manufacturers at very low price.