Centre to tap states on multi-brand retail: Will the issue of Multi-brand retail ever be solved??

The multi brand retail will be there sooner or latter. The government is in two minds since the mom and pop stores may go out of business but it will not happen in India since they are so wide spread all over the country.

Yes in long run the customers stands to benefit since the existing small retailers will have to cut down on their profit margin, 

The main issue with multi brand retail being opened up fully to FDI is the fear that many small retailers may go out of business. However, it is only a matter of time and multi brand retail FDI may be fully opened up in the future. This will also aid in full current/capital account convertibility issues.

Thanks for the referral, Namrata...

It is only question of time. Wait and see. As long as we do not have stable government, alternative policy will bring this. It will be good to all.

I think its just a matter of time. Wal-mart strategy for India is solid. They are patient and willing to work with the government and support the farmer. While the government yet has not approved of more that 51% FDI, there point of view is very myopic in dealing with protecting smaller retailers. Wal-mart today is tying up with the smaller guys like the farmers, training them and also teaching them to become effective sellers. They are wanting to own the supply chain right from the grass roots by taking care of miniscule matters like the quality of seeds to be used to major issues like negotiating with the government about opening up direct retail for foreign players. From their point of view, they are creating more jobs for thousands to be employed and at the same time helping the farmers becoming self-reliant and avert against fleecing from middlemen. The up side therefore is bigger and better than the downside. Political lobbying has always been there, but its a battle that will be lost by the opposing parties eventually.

This step will only delay the final decision, just like how GST roll out is delayed which is crucial step-stone to unlock the real potential of agri-produce, and proper remuneration to poor hapless farmers.

This is only to safeguard the political backlash, (if at all anything comes up) central govt alone cant be targetted, since Central Govt could mention that it was not a unilateral decision, but a collective decision taken by both Central & State Govts.

Instead, if Central & State Govts take initiatives to re-vamp the age old APMC legislations, hawkers, grocers, kirana stores all would be benefited equally; FDI in retail can be moderated and allowed after considering all windfalls, after effects etc. Only the middlemen who neither invests nor pays the right value to the grass root farmers would be thrown out of business - this lot also does not take part properly in nation building because they never pay taxes too, and IT raids will reach nowhere too.

Where as modern trade retailers add to the tax booty of states through audit complying POS sales details, procurement & storage details, revenue & employment details. They even pay more than minimum wages compared to exploitation of workforce happening in traditional trade outlets/stock points.

Moreover the ultimate customer would be having a choice of buying points, from which he/she will eventually buy - despite all gimmicks, promos, offers - he/she will evaluate properly the value for rupee spent for even the salt being purchased.