Pros and cons of foreign equity in retailing
November 25th, 2011 - 5:10 pm ICT by IANSFollowing are the main issues raised by those in favour of foreign equity in multi-brand retailing and those opposed to it:
Those against:
- It will lead to closure of tens of thousands of mom-and-pop shops across the country and endanger livelihood of 40 million people
- It may bring down prices initially, but fuel inflation once multinational companies get a stronghold in the retail market
- Farmers may be given remunerative prices initially, but eventually they will be at the mercy of big retailers
– Small and medium enterprises will become victims of predatory pricing policies of multinational retailers
- It will disintegrate established supply chains by encouraging monopolies of global retailers
Those in favour:
- It will cut intermediaries between farmers and the retailers, thereby helping them get more money for their produce
- It will help in bringing down prices at retail level and calm inflation
- Big retail chains have to put 50 percent of total investment in supply chains which will reduce wastage, estimated at 40-50 percent in case of fruits and vegetables
- Retailers will have to source at least 30 percent of requirement from small and medium enterprises. This will give them a bigger market, better technology and branding
- It will bring much-needed foreign investment into the country, along with technology and global best-practices
- Mega stores will be allowed only in cities where population is above 1 million. So it will not displace people engaged in small stores but will actually create employment
– It will induce better competition in the market, thus benefiting both producers and consumers
- The pros and cons of foreign equity in retailing - Nov 24, 2011
- India opens doors to global retail chains (Roundup) - Nov 24, 2011
- Farmer association supports FDI in retail - Dec 22, 2011
- FDI in retail could help consumers, farmers - Feb 25, 2011
- Industry lauds decision to allow FDI in multi-brand retail - Nov 24, 2011
- Some states against FDI in multi-brand retail: Montek - Mar 01, 2011
- Amid opposition, India declares retail trade open - Nov 25, 2011
- Recall of retail FDI regressive, disappointing: India Inc (Roundup) - Dec 07, 2011
- CPI-M opposes move to allow FDI in multi-brand retail - May 28, 2011
- Battle ahead for government in allowing foreign retailers - Aug 29, 2010
- Comments from India Inc. on foreign equity in retail trade - Nov 25, 2011
- Wal-Mart to target 35,000 Indian farmers for agri-business supply chain by 2015 - Oct 26, 2010
- Shopkeepers protest but shoppers don't mind foreign retailers (Afternoon Lead) - Dec 01, 2011
- Odisha wants rollback of FDI decision - Nov 28, 2011
- Top retailers seek 51 percent FDI in multi-brand retail - Aug 12, 2010
Tags: better technology, foreign investment, fruits and vegetables, global retailers, intermediaries, livelihood, market farmers, mega stores, monopolies, multinational companies, multinational retailers, pop shops, producers and consumers, pros and cons, retail chains, retail level, retail market, small and medium enterprises, stronghold, supply chains