POINTING TO a kirana shop, Dr. B. R. Ambedkar once said, "The disappearance of these shops is certain". He was such a visionary that he could see the future. Ambedkar's comment not only referred the future of a progressive India but also mentioned the challenges ahead before the retailers of this country. Now in the 21st century India holds the testimony 'the youngest nation on the globe'. For a nation, on the verge of becoming a developed one, change is inevitable. Foreign Direct Investment in multi-brand retail is the houseful topic of discussion now. There are two kinds of foreign investments India receives. One is FII and the other is FDI. FII, Foreign Institutional Investment, is of short term nature and mainly related to stock market and related investment avenues.

In simple terms it will never become a productive capital for our country hence never contribute to the real growth of the nation. The second type of foreign investment, FDI is entirely different from FII since it is a long term fund and contributes immensely for the growth of this country. In simple terms FDI cannot be withdrawn overnight.

Who is afraid of global giants?

In 1991, when we opened our gates before liberalization, there was a massive uproar from all the nooks and corners of the society against the move. Some even wrote the obituary of India as a nation. But after two decades of liberalization we are able to count more bright spots in the economy than the dark ones. Everyone tasted the fruits of liberalization in one way or another. Disinvestment of any type was widely opposed in India from the day one itself. If Foreign Direct Investment in the multi-brand retail sector be increased what will be repercussions? People who are against the move point out the immediate death of Indian farmer and also the demise of Indian retail business segment.

But organized retail accounts for just 5.5 percent of India's $470 billion retail market, reported moneycontrol. That means the percentage, which is now meagre, will increase slightly. Global giants like Walmart will open direct shops in India's metros. How this is going to kill the poor Indian farmer and the kirana shop owner in an Indian village? Instead, it will increase the storage capacity all over the country and wipe out the middle men from the retail scene. Farmers will be rewarded with better payment for their hard work. No one in India is afraid of global giants, be it walmart or Carrefour. Rather we will have better know-how to use these opportunities for our own benefit.

According to experts, the more the storage capacity the lesser food inflation numbers will be. "This is a shame" These were the words of Mr. Adi Godrej, Chairman of Godrej Group, soon after the FDI increase in multi brand retail proposal was stalled. These words represent the collective response of the business world in India. I think the issue is not yet over, and we have to educate the people and then steps should be taken. Otherwise, this is a political decision, and it's not always that it needs to benefit the larger portion of the society.