Fdi in Indian Retail Stores
Controversy over Indian retail reforms
A horticultural produce retail market in Kolkata, India; produce loss in these retail formats is very high for perishables
Critics of the Indian retail reforms announcement are making one or more of the following points:,[50][51]
Independent stores will close, leading to massive job losses. Walmart employs very few people in the United States. If allowed to expand in India as much as Walmart has expanded in the United States, few thousand jobs may be created but millions will be lost. * Walmart's efficiency at supply chain management leads to "direct" procurement of goods from the supplier. In addition to eliminating the "middle-man", due to its status as the leading retailer, suppliers of goods also bend over backwards to drop prices in order to assure consistent cash flow. There is the fear that this may not benefit the farmer, or the suppliers of Walmart. * The small retailer and the middle man present in the retail industry plays a large part in supporting the local economy, since they typically themselves procure goods and services from the area they have their retail shops in. This leads to increased economic activity, and wealth redistribution. With large, efficient retailers, the corporate profits are not spent in the areas where they're generated, hence killing the local economy. * Walmart will lower prices to dump goods, get competition out of the way, become a monopoly, then raise prices. We have seen this in the case of the soft drinks industry. Pepsi and Coke came in and wiped out all the domestic brands. * India doesn't need foreign retailers, since homegrown companies and traditional markets may be able to do the job. * Work will be done by Indians, profits will go to foreigners. * Remember East India Company. It entered India as a trader and then took over politically. * There will be sterile homogene
Advantages of FDI in retail sector in India: * Growth in economy: Due to
A horticultural produce retail market in Kolkata, India; produce loss in these retail formats is very high for perishables
Critics of the Indian retail reforms announcement are making one or more of the following points:,[50][51]
Independent stores will close, leading to massive job losses. Walmart employs very few people in the United States. If allowed to expand in India as much as Walmart has expanded in the United States, few thousand jobs may be created but millions will be lost. * Walmart's efficiency at supply chain management leads to "direct" procurement of goods from the supplier. In addition to eliminating the "middle-man", due to its status as the leading retailer, suppliers of goods also bend over backwards to drop prices in order to assure consistent cash flow. There is the fear that this may not benefit the farmer, or the suppliers of Walmart. * The small retailer and the middle man present in the retail industry plays a large part in supporting the local economy, since they typically themselves procure goods and services from the area they have their retail shops in. This leads to increased economic activity, and wealth redistribution. With large, efficient retailers, the corporate profits are not spent in the areas where they're generated, hence killing the local economy. * Walmart will lower prices to dump goods, get competition out of the way, become a monopoly, then raise prices. We have seen this in the case of the soft drinks industry. Pepsi and Coke came in and wiped out all the domestic brands. * India doesn't need foreign retailers, since homegrown companies and traditional markets may be able to do the job. * Work will be done by Indians, profits will go to foreigners. * Remember East India Company. It entered India as a trader and then took over politically. * There will be sterile homogene
Advantages of FDI in retail sector in India: * Growth in economy: Due to