Would a sudden opening to FDI in retail impact India negatively?
Deputy Chairman of Planning commission Mr. Montek Singh Ahluwalia puts his
point of view as it is a step towards modernization of retail sector. His accusation
is that the current retail system is imbalanced. It fetches low price to
farmers and charges higher price to consumers.
But a sudden approval of 51% in retail is an eyesore to
many. Also our biggest counterpart China allowed its FDI in retail with certain
restrictions on location and size of the stores. Even then, more than half of small
retailers’ shutdowns occurred. Once
again, Mr. Ahluwalia quoted that it was an absolute necessary step for India to
go for to get into the bandwagon. Not only modernization, but he asserts that
it will benefit farmers to gain more and produce more variety according to the
giant outlet needs. And the consumer of course will have cheaper prices, better
quality and a good shopping experience.
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