Using your phone's internet browser
go to:  qna.rediff.com
Click and drag this link to
the Home icon in your browser.
Q.

Is it a prudent to allow foreign direct investment (FDI) in the retail sector? Your views?

Asked by Good Citizen, 08 Jul '10 12:55 pm
  Invite a friend  |  
  Save  |  
 Earn 10 points for answering
Answer this question  Earn 10 points for answering    
4000 characters remaining  
  
    
Keep me signed inNew User? Sign up

Answers (5)

1.

No!!
Answered by dharamender nebhnani, 08 Jul '10 02:32 pm

 
  
Report abuse
Useful
 (0)
Not Useful
 (0)
Your vote on this answer has already been received
 
2.

Well, it has both pros and cons. Since India is a strange case, even the pros can become cons like the happenings in the Union Carbide case. It all depends on what type of legal framework you put in place and how honestly they are enforced to deliver justice and safeguard the interests of the country and its citizens from being taken for a ride.

First Cons:

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.

Pros:

1)MNC retailers would bring in their technology, expertise, innovation and competition which are beneficial in the lon ...more
Answered by Tony Fernandez, 08 Jul '10 01:51 pm

 
  
Report abuse
Useful
 (2)
Not Useful
 (0)
Your vote on this answer has already been received
3.

The Govt , in the Commerce Ministry,paints a rosy picture about Foreign Direct Investment in multibrand retail. I t argues that more FDI will alltogether change the rural economy,not to speak of Urban economy, generating immense potential for opportunities to both the rural and urban population, apart from ensuring a fair return to the farmers.. How this optmistic end result is arrived at by the Govt is not understood. But the ordinary pople, the small and medium size traders and the petty shopkeepers in interior rural areas as well as in the urban interiors are apprehensive of this move of the Govt. About 30 million people find their livelihood in the retail sector, And evaluating the results of the coming of indian supermarkets owned by the Reliance, Birlas and Tata into even small towns, which found many shop keepers pulling down the shutters, I think, there is cause to worry about the plight of the small time vendors.
Answered by thampy chacko, 08 Jul '10 01:14 pm

 
  
Report abuse
Useful
 (2)
Not Useful
 (0)
Your vote on this answer has already been received
4.

Good Citizen , Now a days Central Government is seriously Discussing about the FDI.
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
Answered by Musfer, 08 Jul '10 01:09 pm

 
  
Report abuse
Useful
 (1)
Not Useful
 (0)
Your vote on this answer has already been received
5.

We should now desist from allowing or prohibiting as we are mature enough for a free economy
Answered by RSehgal, 08 Jul '10 05:32 pm

 
  
Report abuse
Useful
 (0)
Not Useful
 (0)
Your vote on this answer has already been received

Ask a Question

Get answers from the community

600 characters remaining

Related Answer

Q.
A

Yes. He is upset. So also the ruling party. That is why a renewed demand for his resignation by the opposition benches and both the houses have been a..more

Answered by Dharmarajan