If you look carefully, you will realize the debate on allowing foreign direct investment (FDI) in retail is happening entirely on a different level.
The current debate is all about whether organized retailing in India should be allowed or not? Look at the stakeholders that are being cited - farmers, consumers, retailers, whole-sellers etc. etc. Where is the FDI part? It is all about organized retail.
Organized retailing in India is already happening and it is here to stay. What will happen if FDI in this organized retail is allowed? I do not know. But one thing is for sure - jobs will not be shifted to the USA, Germany or France as various politicians have been claiming on various TV channels.
Job shift will definitely happen but from unorganized retail to organized retail.
The current debate is all about whether organized retailing in India should be allowed or not? Look at the stakeholders that are being cited - farmers, consumers, retailers, whole-sellers etc. etc. Where is the FDI part? It is all about organized retail.
Organized retailing in India is already happening and it is here to stay. What will happen if FDI in this organized retail is allowed? I do not know. But one thing is for sure - jobs will not be shifted to the USA, Germany or France as various politicians have been claiming on various TV channels.
Job shift will definitely happen but from unorganized retail to organized retail.
1 comment:
There is one valid point which needs to be taken care of. The companies with deep pockets can take losses for a longer period of time to drive out the competition. Though these losses would not be called losses. They might be hidden and be termed under bigger words such as supply chain efficiency, economy of scale and scope etc. Whereas smaller players can not take loss for long. Slowly there will be only few bigger player which might exercise their monopoly. It will not happen immediately but can happen slowly. Govt. needs to keep an open and vigilant eye on it and punish the doers strictly and with speed. (I think there is a policy against this). If this is taken care of, I think everyone will be fine.
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