Pros of allowing FDI in Multi-Brand retail sector for India
- Some domestic retailers have had to fold up because they expanded too fast and couldn't finance their plans. Eg. Vishal, Subhikshaand Koutons. FDI will provide the much needed funding.
- Willbring down the difference between farm- gate prices and retail prices
- Will bring technical know-how to set up efficient supply chains which could act as models of development
- Will increase employment as companies will need to hire millions for their pan-India retail operations
- It will also make joint ventures easier, simpler and cleaner
- Researchers estimate avoidable supply chain costs (wastage, excess inventory and excess transportation costs) in Indian food and grocery sales to be about US$24 billion
- It will bring with it the technologies and expertise required to build robust food supply chains.
- Foreign players will invest in backend infrastructure and cold chains necessary to reduce wastage of farm produce.
- It can tackle food inflation which is a major problem today
Cons of allowing FDI in Multi-Brand retail sector in India
- Retail sector is the second-largest employer in the country and a flood of foreign competition may lead to many people losing their jobs
- Local traders and retailer associations, manufacturers, small retailers and NGOs are strongly opposing it
Fear that foreign players will totally monopolize
and grasp the market
कोई टिप्पणी नहीं:
एक टिप्पणी भेजें