Is it a prudent to allow foreign direct investment (FDI) in the retail sector? Your views?
1)The biggest fear is loss of livelihood for millions of small retailers / roadside shops spread across the country. It is said that these small retailers cannot withstand the competition from giant and deep pocket MNC retailers.
2)There is also a fear that the MNCs would form a cartel to jack up the prices once they overcome the resistance from local big and small retailers. They say that the MNC retailers would resort to price fixing. Of course, there is some truth in the above two arguments.
1)MNC retailers would bring in their technology, expertise, innovation and competition which are beneficial in the lon ...more
In My Opinion if it implemented, would result in consumer prices coming down owing to competition. This would augur well for the consumer as well as for the industry. It will also creating jobs and securing better returns for farmers. It has been proposed that at least 50% of the jobs in the retail outlets should be reserved for the rural youth.
At present, India is the second largest producer of fruits and vegetables in the world. But, 35% of the production goes to waste because of inadequate processing and cold-storage facilities. If FDI is possible we Get High Class Technology
The Problem is the opposition parties says International players can undersell goods at a cheap price, thereby eliminating small retailers completely out of business, It will badly affect the Small retailers and Middle mans