FDI in Indian retail should be welcomed.

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FDI in Indian retail should be welcomed. (01-6-2012)
Foreign Direct Investment or FDI in Indian retail sector up to 51 % is the most emotive topic and has been in discussion everywhere in the country.

For

- FDI in India Retail should be welcomed as this will bring a lot of money in India.
- Foreign Investment will help the government to build new infrastructure and improve rural infrastructure.
- Farmers will be the biggest beneficiaries from this move, as they will be able to improve their productivity and get high prices by selling their crops directly in the market to the large organized players.
- Government will also gain by FDI through transparent and accountable monitoring of goods and supply change management systems.
- Products will be available to the consumers at reduced price.
- This will provide lots of job opportunities to unemployed people in India.
- It will provide more options to the farmers with less wastage of agriculture product.
- FDI in retail will increase the competition for Indian players pushing them to improve their products and services. The final beneficiary of this competition will be the consumers.

Against

- FDI in Indian Retail should not be welcomed as they sell only their products throughout sourcing at cheap rates from foreign companies which reduces the value of Indian commodities and labour.
- Companies like Wall Mart, Tesco etc. will only engage well educated and smart workforce in small proportion. Thus it will not solve the problem of unemployment.
- It will create competitive markets for the Indian companies as they will be struggling with the foreign companies to increase the demand of their products.
- The market of our local shopkeepers will suffer.
- Farmers will become poorer as these big companies will slowly turn into monopoly buyers ruling the rates.

FDI has its advantages as well as disadvantages. FDI in right areas is required for the development of the country. Rather than inviting FDI in retail (which can be managed by big retailing companies in India), we should invite FDI in technology and infrastructure.
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