Foreign Direct Investment is being given green signal with shares in the retail market. How far this decision of the Central Govt. is going to fesibly help out the elimination of the mediators from the market and curb down black marketing?
Home/FDI.. boon or bane?
The implementation of FDI in retail sector and providing them a share of about 50% in the domestic market is going to curb down the middle party marketeers but is definitely going to snatch breads of many distributors.. many of them whose ONLY livelihood depends on this.
And closing down of all the local shops and opening a mega store of WALMART is not a very feasible idea as they say they would provide everything really cheap but still the BPL section would remain untouched of its benefits.
The implementation of FDI in retail sector and providing them a share of about 50% in the domestic market is going to curb down the middle party marketeers but is definitely going to snatch breads of many distributors.. many of them whose ONLY livelihood depends on this.
And closing down of all the local shops and opening a mega store of WALMART is not a very feasible idea as they say they would provide everything really cheap but still the BPL section would remain untouched of its benefits.
FDI in my opinion is bad for the country’s economy. As we are in the category of developing country and to develop properly we need to control the country’s economy very carefully. If the % in FDI in retail sector (multi-brand) is increased then the investment in India’s retail market will be from foreign investors and the profits are also drained to the investors. And moreover in INDIA, the retail sector mainly depends upon the agricultural sectors and the producer and if FDI is increased then it is going to affect the agricultural sector of the Country very badly and which will affect the country’s economy. And if the % of FDI is increased to 100% in retail (both single and multi-brand) sector then government will lose the control over this sector completely and then it cannot help in controlling this sector with its rule and regulations as the whole retail sector would be privatised. And this privatisation can make a very serious effect on the country’s economy. And one of the most disadvantage of FDI in retail sector is that as we know that the retail sector is one of the major employment provider and permitting FDI in this sector can displace the unorganised sector and leading to loss of livelihood the most favouring example is if wall mart entry in retail sector is allowed then it will kill the millions of local shops and jobs. The global retailers would exercise monopolistic power to raise prices and monopolistic power to reduce the prices received by the supplier. Hence both the consumer and supplier would lose while the profit margin in such retail change would go up. So from the above points i can say that FDI in retail sector is not good for India.