FDI in multi-brand retail?

I do agree that there should be FDI investment in retail industry. Because, when FDI comes they so bring new technology & Foreign inflow. As, it will make Indian co. familiar with there way of working.

The same apprehensions were expressed, when opening up economy for foreign investments. Time has proved that, this helped in Indian industry getting to know their real potential vis-a-vis international companies, and ultimately it proved to be good for overall economy.

In the same way, real worth of local small players will be evaluated when exposed to challenges. Market is vast enough to susutain all kinds of players. In stead of providing protected market to local merchants, making them to compete with big players will do them good only. But, Government should ensure level playing field for all.

I agree 100% with Akhilesh. Now that the ruling party has come to power mostly on its own steam, it is free to roll out all its policies without any 'hindrances'. FDI in retail will definitely be allowed, although in a 'slow and phased manner'. We need to consider that we need the investments, the infrastructure and the policies & legislation to organise and support the modern format. The smaller producer stands to gain from consolidation of demand from the local market as well as have opportunities to export to foreign market with the help of modern retailers. Especially in cases where the market is still 'unorganised' like the leather goods industry, garments, food industry etc.

To give an example of food retail. Hopefully FDI will open up the cold chain, distribution and logistics, to minimize the large waste of farm produce and also correct the huge difference in prices (farm price and market price) which is bloated due to the multiple 'middle layer of middle men and agents. Contract farming by large retailers will bring in  benefits to farmers. The consumers will hugely benefit from better service, wider range, and low prices. Lastly the full retail ecosystem will contribute more taxes, than the present scenario.

Knowing the Indian expertise and acumen in this field, I would not expect today's retailer to be wiped out. They will co-exist in some manner and I expect them to learn the modern format and expand globally as retail chains or as producer-exporters.

The country has so far not allowed any FDI in multi-brand retail due to strident political opposition, particularly of the Left, to the entry of multinational retail giants in India, who in their opinion, could ruin livelihood security of small traders and a large number of persons employed with traditional form of retail business. However, as fears of foreign fund flows into India diminishing in the next few months are becoming real, the government has begun to seriously think in terms of revisiting its policy on FDI in the retail sector. This, if allowed, will open up floodgates of new capital as foreign retail majors are too keen to foray into India’s retail sector.