What do u think of FDI in retail to be introduced in India?

[Harsha]

I have been reading about FDI in news. I cant get a proper idea whether it is good or bad for the nation. I can say the short-term effects would be loss to small scale stores and in the long term Monopoly is possible. Can u add more views on this?

[Justin]

It is a medium to make black money white. The rich will get more richer. No doubt it will create jobs in retail sector.

[Karthik]

FDI will benefit the farmers as well as the customer. Customer will get products of some standard quality.With the improvement in storage facilities the farmer can sell his products at a fixed rate as there be less depreciation of goods due to better storage facilities.

[prem]

It is a bad option in short term as well as long term. Let me lay my case on this issue. See, the fdi would bring in a lot of foreign currency and alot of bribe money for our beloved politicians and babus. They will import grains and other items from other countries where they get it cheaply. Either our farmers would have to match the price or sell it to agents at throw away prices. The fdi companies would buy land which mostly would be farm which would be converted to NA plots. The farmer would get rich overnight but we will lose agriculture. To make locals happy alot of youngster's would get employment but soon they would be layed off citing global issues n inexperience. Most small traders r who supply grocery on credit to customers hence they would not be hampered, but they will too lose big customers, who would buy from big retails at good prices. But soon when India will lose most of the agricultural land they will increase prices to collect all the backlock. As we lose agricultural land it would be hard for us to make a comeback. The simple cure is to built large storage centers for fruits, vegetables n grains. Increase output of energy n irrigation to villages. So that when farmers sell these products they don't get destroyed due to poor storage. Encourage young business to flourish. Built the economy from inside not from outside. As we soon would be feeding largest population we would require a huge amount of food and just imagine the day our country not producing much n being dependent on import. Horrific. Prices would surge and hunger deaths would be highest. Our PM said these r reforms neccessary for money but forgot about the n number of scams his cabinet is into which forced billions of loss to our country and now wants to recover those from the tax paying citizens of the country. I can smell a civil revolution soon but nonpolitical as politicians can change their stance in a heart beat.

@JD - U should not make such comments. I have said what I think of fdi, u have to say, pls do so about fdi and not me. If u have some reservation about my comments, highlight them but don't be rude. I hope u would retract ur statement n post a fresh one.

Be with me on twitter @rethish01
Be my friends on Facebook - rethish.nair.946@facebook.com

[JD]

this Mr rethish nair seems to be an idiot close minded person...

[Max]

It will take long time for consumers to actually get benefited for FDI.

The government will benefit first. Foreign companies will pour in lots of money to secure land, electricity, workers, etc. Government will get money in the form of security deposit, stamp duty, land acquisition, sales tax registration charges, import duty, etc.

Look at all that money going into government treasury accounts.

I'm not against FDI. But, consumers should be benefited first, not the government.

[anil kumar]

FDI is a good decision taken by PM. Further India will attract Foreign investments and become a super country soon.

http://www.sterlingdevelopers.com

[manav m]

Lets look at both pros & cons of the FDI

Benefits
1. more choices for buyers
2. cheaper options for buyers ( organized retail chains get cheaper products from companies due to their scale of buying, which a kirana walah doesnt get)
3. Minimum wages ensured to people working in these stores (which a kirana wala doesnt ensures, dont just think about Kirana wala also think about 4-5 people he employes)
4. today the farmer doesnt get the right price for his produce, and middlemen makes majority of the money due to his storage facilities and muscle power. when the middle men is eliminated from the entire chain, the farmer shall get more for his produce and customer shall get it cheaper than the earlier prices
5. India's forex reserve to shoot up-> means higher value for the Rupee -> your money is worth more when you travel abroad or enters purchase outside country

the kirana wala shall survive like always due to customized dealing, convenience, lower operating costs and credit on offer
if at all Kirana wala is at risk, he is at risk from all other organized players like Tata, Reliance, Birla as well, as they cut the middlemen too and source directly from the companies then why I should let go of the dollar coming into my country? especially when I loose my dollar on oil imports (which shall continue to go up in future)

Also, if I have to choose between 99 Cr Customers and 1 Cr middlemen (hypothetical figure) I think being a democratic nation I can decide in favor of the customers

[Chandan]

For development of India FDI should be introduced

[gandharva]

FDI in India is for the good.

Present condition with no FDI in retail
1. Do farmers get right price for their products?
2. Can farmers sell their products without middle men?
3. Is super market practice doing any harm to farmers?
4. Can a farmer adapt new technologies in agriculture industry without proper investment?
5. Is there any chances of improving agriculture as a industry?
6. If anybody has a land and if he wants to earn from it then will it be wise to use the land for agri
purpose or real estate?
7. Are all farmers self reliant for agriculture?
8. Is retail business shines without agricultural products?
9. Is knowledge on agriculture effectively utilised?
10. Is agricultural product rate bringing down the inflation?

If your answer is yes for more than 2/3 of the questions then FDI in retail may be harmful to the nation as a whole.
If more than 2/3 of the answers are NO then FDI in retail is benefitial to India.

Now India is second to China as a economically growing country, the reason behind this is Industrial Globalisation.
During globalisation transformation the same opposition was there as to Indigenous products might get affected. But due to technical collaboration & joint ventures we are now self reliant in technologies in industries to compete with foreign companies to make India a fastest growing country next to China. That means our productivity in infrastructure, development & technology increased. Now we can produce the same product competable to foreign companies with more economical than imported ones.
If we use the products that are produced with more advanced technologies by joint ventures then we can learn how to produce them by technical collaborations. After some years monopoly will not be there as we might have known how to produce them.
This was the brain behind the Globalisation in industries. Indigenous manufacturers started marketing foreign products for some years & then started producing the same products economically with technical collaboration with them. Because production indigeneously with the same technology will be economical than importing those products. But China is producing with still economically that is why they are number one. After some years they have started their own products & compete with others.

The same thing is going to happen to our agricultural industry in another 10 years. For the first few years we use the products. Then we will learn how to produce them. Next years we start to produce them but with more economical than them. Afterwards we will be self reliant in producing them avoiding monopoly. So after 10 years we will be the largest producers of agricultural products in the world & second largest growing country in the world for sure.

Hence by past industrial globalisation experience we will welcome FDI in retail till we learn how to produce them because Japan is producing agricultural products in lesser time due to hybrid technology. Let us learn how to produce them and make our own innovation afterwards.