i want to have your views on fdi in retail?

Answer 1

FDI in retail, is very good for URBAN Consumer, who has good money to spend, it will close down shops who overcharge or sell outdated, poor quality item at higher prices....

Stores Like Carrefour, Walmart (with Airtel), Reliance, Big Bazaar, Spencer.....can offer good prices for daily needed items

Answer 2

Foreign Direct Investment in Retail Sector in India

Retail in India – A Brief Snapshot

October 13, 2005 : Retailing is the largest private sector in India and second to agriculture in employment. India today has perhaps the highest retail outlet density – with approximately 15 million retail outlets. The entire retail trade contributes about 10-11% to India’s GDP and is valued at an estimated Rs 9,30,000 crores. Out of this, organized retailing industry is around Rs 35,000 crores. Organized retailing is primarily urban centric, its share as represented in urban scenario is projected to be 12 to 20%. Growing at more than 30%, the organized sector is driving the retail growth in India and contributes significantly to the growth of the economy. This economic growth comes primarily from increased consumer spending.


India as an Emerging Destination for FDI

India today represents the most compelling investment opportunity for mass merchants and food retailers looking to expand overseas. According to AT Kearney’s Annual Global Retail Development Index for 2005 – an annual study of retail investment attractiveness among 30 emerging markets – India displaced Russia to move from the second place to the first. India’s retail market, totaling $300 billion, is vastly underserved and has grown at an average rate of 10% in the last five years. This increased spending and consumer confidence is a positive indication for the growth of the Indian economy.

Present FDI Regime and Entry Routes

The Central Government in 1997 had taken a careful policy decision of keeping FDI in Retail at bay. But the present policy allows India to have a presence of international brands, through different routes as follows:

–Franchise
–Joint Venture
–Manufacturing
–Distribution

–Cash & Carry (100%)

FDI in Retail – Benefits & Concerns

Benefits and Impact on the country:

–Inflow of investment and funds
–Growth of Infrastructure
–Knowledge Base / Technical know-how
–Reduced Cost and Increased Efficiency
–Franchising opportunity for local entrepreneurs
–Investment in supply chain, cold chains and warehousing
–Implementation of IT in retail
–Stimulate Infant industries and other supporting industries
–Increased Local sourcing
–Increase number and improve quality of Employment
- Provide better value to end customers

Hence, it will lead to overall economic growth and create benchmarks.

Concerns regarding foreign investments:

–Foreign players would displace the unorganized retailers because of their superior financial strengths
–Induce unfair trade practices like Predatory Pricing, in the absence of proper regulatory guidelines
–Create Monopoly and promote cartels
–Give rise to cut-throat competition rather than promoting incremental business
–Increase in real estate prices and marginalise domestic entrepreneurs

Hence, checks are to be injected to ensure the over all growth of small and big retailers and to create a level playing field for all.

Answer 3

if they r tgting rural poor & helping them
then its good

Answer 4

if they r tgting rural poor & helping them
then its good