The pros and cons of foreign equity in retailing
November 24th, 2011 - 8:22 pm ICT by IANSNew Delhi, Nov 24 (IANS) The following 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 will invest in supply chains which will reduce wastage, estimated at 40 percent in the case of fruits and vegetables
- Small and medium enterprises will have a bigger market, along with better technology and branding
- It will bring much-needed foreign investment into the country, along with technology and global best-practices
- It will actually create employment than displace people engaged in small stores
– It will induce better competition in the market, thus benefiting both producers and consumers
- Pros and cons of foreign equity in retailing - Nov 25, 2011
- India opens doors to global retail chains (Roundup) - Nov 24, 2011
- Industry lauds decision to allow FDI in multi-brand retail - Nov 24, 2011
- FDI in retail could help consumers, farmers - Feb 25, 2011
- Farmer association supports FDI in retail - Dec 22, 2011
- Some states against FDI in multi-brand retail: Montek - Mar 01, 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
- Amid opposition, India declares retail trade open - Nov 25, 2011
- 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
- FDI in multi-brand retail will reduce prices, says RBI - Nov 26, 2011
- Can't let politics block valued foreign equity in retail: Pranab - Dec 02, 2011
- BJP opposes FDI in multi-brand retail - Nov 24, 2011
Tags: better technology, favour, foreign investment, fruits and vegetables, global retailers, intermediaries, livelihood, market farmers, 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