Union Finance Minister Mr. Arun Jaitly’s decision to continue the previous UPA Governments rolled back policy of the decision to permit 51% FDI in Multi Band Retail iswelcome as is the case with China which according to latest statistics is the second largest in terms of economy and FDI investment including Multi Brand Retail followed by US.
I feel this is a step in the right direction as 51% Multi Brand FDI in retail would give quality goods at competitive prices, boosts efficiency of Indian Supply Chain Management, benefits local farmers who get better prices for their produce and consumers- who’d get high quality goods including vegetables and fruits at cheaper prices. It would also boost production, growth and creates jobs and wouldn’t hit unorganized sectors such as Kirana Shops, owners of local convenient Stores, small vendors of roadside and pavements and push carts etc and wouldn’t hit local Markets and wouldn’t lead to foreign invasion as we fear and such fears wouldn’t materialize as proved in China as these local small traders in these sectors would improve their service through home delivery which these highly discounted organized Foreign retailer investors wouldn’t.
Anyway, flows in FDI in Multi Brand Retail would be low as goods would be sold on credit or cash basis. Also, many organized local vendors or tradesmen may enter into Joint Ventures with Foreign Retail Investors, boost sales of their products and make profits.
Consumers would ultimately get to benefit in terms of good or better quality goods at much lower prices as “consumer is the ultimate king or final choice is his”.