It will offer broad range of choices and better quality to end consumers and will bring in many new business opportunities for Small and medium enterprises across India. With increased investment in Retail sector , the Quality of products will improve, providing greater transparency, better monitoring of adulteration and counterfeit products.FDI in Retail would drive efficiencies leading to increased affordability and International level shopping facilities for consumers. As the MNC’s such as Wal-Mart , willing to establish their brands here, spread, bulk buying from SMEs will increase leading to more business opportunities.
Besides, Organized Retail and Mom N Pop Stores (kiranas ) can very easily co-exist, as they do in other economies around the world. In fact, wholesale cash-and-carry stores such as ‘Metro’ allows many kiranas to flourish through access to quality, low-priced merchandise and produce, business training and much more.
In the process, FDI in Retail , would make kiranas to be competitive, by enhancing their customer proposition such as adding more brands on their shelves, better display, renovation of the store, acceptance of credit cards, faster home delivery etc.
All this will eventually benefit the end consumer.
Writing my arguments against FDI.
ReplyDelete1. The cost of capital in US is 2% while in India it is 10%. If US Co's bring in huge capital, our labour should also get access to US Market. Else disparity would increase, rich will get richer & poor will get poorer. This has happened with us in last 20 yrs since 1991. Our Gini index double after liberalization.
2. Why govt wants FDI? We are stuck in 1991 kind of situation where our current cash flow is getting depleted putting pressure on Rupee. FDI and disinvestment would bring in some dollars but it is not a solution. It is a face saver till elections.