A practical evaluation would show that FDI in retail would not fetch much and major investors like Wal-Mart may have little impact on Indians who like to buy from their nearest grocer.
THE RULING government’s decision to permit greater FDI in retail has resonated across political clouds. Most major parties in parliament house are simply playing their limited self interest agendas instead of debate and analysing its effects on farmers, consumers, workers and the economy in general.
There is a lot to be said about big foreign companies coming to India and strategy makers failed to give details on how retails really work in country. Mostly people believe that foreign participation in domestic market is widespread with fears of colonialism. The foreign supermarkets would most likely destroy the small businesses, agriculturists, farmers and other producers. On other side, the country urgently needs to take strategic decision to draw foreign funds, which among other things could boost the falling rupee. “There is nothing wrong to raise FDI limit from 51 to 100 percent in single –brand retail but government must explain its pros and cons to people,” said a business man who is looking forward to invest in foreign retail chain. “I do feel there are some points that need to be made clear, middle class buyers are more interested in foreign brands,” added another business man. The government clearly displays the success of the FDI policy with positive feedback and experience in telecom, automobile and insurance sectors. Opposing it is like lack of larger vision. There should not be fear of losing small trade as organised retail takes place in larger system and famers, small time traders will benefit in a big way and directly because big chains have to procure raw materials etc openly from farmers by eliminating middlemen. This will open the door to farmers to get new technology and scientific methods of farming, higher yield and reasonable better prices. A practical evaluation would show that FDI in retail would not fetch much FDI and major investors like Wal-Mart may make little impact on Indians as they are not regular customers and never let their cultural traits die. It’s become practice of opposition parties to oppose the policy of ruling government without debating on issues for momentary gain.