Commerce and Industry Ministry is considering to bring in FDI in Multi-brand retail, however there are strong oppositions from the state governments and indian retailers who fear that foreign companies would take over the markets. Do you think a decision to bring in 51% of FDI in Multi-brand in retail would be a wise decision?
I am not in favor of FDI in retail as it will be lead to closing of many small businesses that are being run by people. These businesses are a means for their bread and butter and by bringing FDI in multi-brand retail, these people will face huge problems and it will snatch away their bread and butter. In my view it will not be a wise decision to bring in 51% of FDI in Multi-brand in retail.
I don't think that bringing in 51% of FDI in Multi-brand retail will be a wise decision. It will not solve any problem rather increase problems, which is not being realized by Government. FDI in retail will lead to more unemployment problems. It will hamper the agriculture industry vastly, which is the primary occupation of most of the people in India. It will also lead to closing down of small scale and cottage industry. This will affect the growth of Indian economy which is dependent on these sectors.
I would like to know what difference would it make in having multi-brand retail FDI in India when we already have FDI in single brand? Instead of disallowing foreign investments, we could create some policies wherein the foreign companies will be bound to make purchases from local producers and vendors so that Indian domestic producers are not cheated. Apart from this, there could be a arbitrary body which could monitor the rates/prices at which local producers can sell their produce to these FDI companies. This would ensure that the local producers are given a fair price for what they deliver. Investments are something which India is in dire need to strengthen its infrastructure, therefore denying FDI in Multi-brand would not be a very good decision.
I agree with you that FDI in multi-brand will make no difference when there is already FDI in single brand but making policies that will enforce the foreign companies to make purchases from local producers and vendors so that Indian domestic producers and sellers do not suffer is not very practical because they are supposed to have 51% share which is more than us and this makes them have more power and rights than us. That is why I am not in support of FDI whether in multi brand or single brand.
