|
Proponents for FDI opined that that
foreign investment would help in improving the retail and
supply chain infrastructure, and generate large-scale
employment in the country. In addition, the Indian retailers
could absorb some of the best operational practices of these
international retailers and gain in experience. Ultimately,
the consumers would benefit due to the availability of more
product offerings, lower prices, and efficient service.
Those who opposed FDI argued that the entry of foreign
retail giants would be detrimental to the livelihoods of
unorganized retailers in India. There were an estimated 12
million shops, which accounted for 97% of the retail market
in India. There were concerns that these small retail stores
would not be able to compete with the operational
efficiencies and financial muscle of foreign players. |
|
Also, there was the aspect of increased concentration of power among a few
large buyers. Despite this opposition, it was felt that the rapid growth in the Indian
retail sector and its huge employment potential could not be ignored for
long, and that the government would have to take firm steps toward allowing
FDI in the retail sector. Some Indian retailers and industry experts opined
that the opening up should be a gradual process so that the Indian companies
could gear up to face the increased competition.
However, all things considered, given the lack of consensus on the issue of
allowing FDI in retail, the debate was expected to continue.
More >>
|
