It happened, the decision has been made. Yes, but why at 51%? We may have heard a lot and read about the prevalent news on the decision of the UPA government to allow 51% FDI in retail in the country. We have also read and heard about the protest of Political Leaders like Mamata Banerjee against this decision. Well at the end of the day, it is the duty of the ruling party to implement something which they think is good for the country and it is also the opposing party’s job to oppose whatever they deem fit. But, we the common citizen should be in a position to be aware about the current prevailing scenario before we can judge and decide who is wrong and who is right. So, in order to be clear about this, let’s analyze and see its impact and defect on us and the country’s economic development.
The Good: FDI in retail will be a boon in some ways as it has been to other sectors like infrastructure, real estate and Financial sectors of the Indian Industry. This will help the farmers and agriculture businessmen to omit the middleman/trader who always end up corrupting the hard earned money by the farmers giving them less than what they actually deserve. Retail FDI will result in increasing the booming retail industry which will creates more job opportunities and also helps the supplier to be able to deal and do business directly with the retailer thus getting and receiving the exact worth of their goods and services which will stabilize the supply and demand flow. This I think will also help in maintaining a stable inflation rate of the country.
The Bad: While it will be good for the farmers to sell their good directly to the retailers, it will decrease the number and opportunities of self-employed small businessmen and agricultural brokers. And on the other hand, the Foreign Company will end up corrupting the farmer’s money with their high end intellect of business skills thus hypnotizing the poor and illiterate farmers. FDI will create more job opportunities for the people but it will also diminishes the self-employed who are engaged in their own business which will result in the foreign company keeping their earnings for themselves as they are doing only business for profits in our country and not charity works.
The Verdict: All in all, it will be very beneficial for India to introduce FDI in retail after keeping and maintaining the followings below:
- Proper awareness of trade and basic business transactions to farmers and the likes.
- The Govt should ensure that the suppliers especially the Farmers are not being deceived and are given the exact worth of their supply to foreign retailers.
- Initiative to create maximum employment of people for all retail outlets and proper and transparent rule’s and regulations of trade governance.
Impact on States where FDI Retail will be implemented
If it is implemented in state like Manipur, it will help in economy and employment of the state thus creating more job opportunities and more earnings for the farmers. As we all know, Manipur’s main source of income is agriculture and if Big Foreign retailers like Walt-Mart venture into our state, it will be good for us. The amount of people migrating to other states for employment opportunities will also decrease if not tremendously to a little extent which will be a good sign.We have already benefited to some extent the investment and expansion of banks like HDFC ICICI etc.So, I would say, with optimism and hoping and wishing for a better and more developed nation, I agree and support the FDI Retail in India.
- India Approves 51% FDI In Multi-Brand Retail (medianama.com)
- FDI in aviation, multi-brand retail approved (ibnlive.in.com)
- India Backs Foreign Investment in Retail Sector (nytimes.com)