FDI i.e., Foreign Direct Investment in retail sector is a widely debated topic whether this is good or bad for Indian Economy. Let's explore on the issue and see whether FDI in retail will boost Indian economy or not.
There are some factions of the government who are opposing the FDI in retail sector as they foresee that this will take away the jobs from the hands of the hawkers and retail shopkeepers. The FDI will surely provide services in a much lower rate or probably at par with the small retailers but in long run they will dominate on the market and hence they will be in a position to charge as much as they wish as there would be no other competitor to provide retail facilities to the people.
Many people fear that the FDI in retail sector will eliminate jobs instead of creating more jobs as their retail chains will be more mechanised and hence will require fewer persons to operate the stores. Some people also fear that the foreign companies will bring trained staff from other countries and hence local people would not be able to get jobs.
Our honourable Prime Minister and other supporters of FDI in retail sector profess that more jobs would be created and FDI in retails would open up new avenues of jobs and enhanced services to the public and farmers,
FDI in retail sector will help in meeting the gaps of the demand and supply of the fastly urbanising Indian towns and cities. The lack of storage and cold storage which the Indian farmers are facing will disappear sooner than expected as the big retailers will try to capture the raw materials and farms produce at source to maximise the profit margin.
The FDI in retail sector will enhance the market competition and people will be able to get faster and affordable services at their door steps. The Indian retailers will also learn from them and they will also replicate their models in other small and medium towns thus enabling the whole country to get benefitted from the foreign direct investment in the retail sector of Indian economy.
The decision of the United Progressive Alliance government's decision to allow the FDI in retail sector on the condition that state government can opt out of the scheme and may disallow the FDI in retail sector. Most of the states led by coalition of Congress has allowed the FDI in retails. Thus, we are in a position to see the outcomes of the FDI in retail sector and hence the states which are not allowing FDI in Retail Sector will have a chance to assess the good and bad results of the FDI in retail. We, in media, will be able to see the impact of allowing and disallowing FDI in retail sector.
We will like to hear from you on the topic of the discussion. Thanking for sparing some precious moments of life for going through my article. Hope to see you again!
Shashikant Nishant Sharma