Positives and Negatives of FDI in Retail   2 comments


Promising to bring in Reforms UPA-II Finally seems to be making bold decisions.Even overlooking the threat put forth by a key ally Trinamool Congress .However Farmers seems to be happy as they were  angry and Fedup with disorganized APMC yard with pathetic infrastructure and unfair prices fixed by middlemen .Even Large and Medium retailers are expected to procure goods at 10%-15% lower than current price .Even as many Farmers say MNC’s offer 15%-30% more than what middle men use to offer.

Advantages of 100% FDI  in single brand Retail and upto 51% in Multibrand Retail

  • International Shopping Experience
  • Close to 4 million Jobs are expected to be generated in Store Operations n Front and Logistics
  • Higher Revenue Collections From Retail as VAT is collected by default in  Organized Retail Environment as we move towards GST
  • More Opportunities for start up in supermarket and hypermarket
  • Farmers and Consumers benefit as a result of better pricing
  • Enhanced Cold Storage facilities

Disadvantages of FDI in single brand Retail and upto 51% in Multibrand Retail

  •  SME’s and Kirana’s might be forced to shut down unless they upgrade
  • Monopoly as they dictate pricing in the long run as competition runs out in the long run
  • Government should also think of regulatory body which has not be proposed yet
Conclusion
With Target ,Walmart,Tesco and Carrefour waiting impatiently to enter Indian market to get a share of growing Indian Retail market .As Indian Organized Retail Market is just 4% of Overall market currently expect fireworks in the coming days .With opposition from BJP and LEFT .Center has made sure they don’t force it and left if for states to decide .All in all a bold step by a government which wants to show it’s not in ICU .However this move was rejoiced by Corporate India.Hope those displaced by this will be Rehabilitated
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Posted November 25, 2011 by avinash2060 in Uncategorized

2 responses to “Positives and Negatives of FDI in Retail

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  1. Pingback: India | FDI in retail will increase unemployment: BJP – The Economic Times « Skillsinfo's Blog

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