After waiting for reasonable time and going through internal
thought process and analysis, I decided to publish my point of views on some
key issues, which are holding my attention and some part of my thought process.
I am using most accessible media i.e. internet and instrument as blogs for this
matter.
I strongly believe that, all time we are dealing with ‘Relative
Truth’, so these are my point of views on some matter and still there is scope
for addition, correction and improvement, for which I would like to encourage
readers to provide their valuable inputs as comments.
This particular blog is on recent development in Indian
economy i.e. ‘ FDI In Retail’. I believe it is kind of a bold step taken by
government and particular prime minister Dr M M Singh, I respect him and his
capabilities as a good economist. Find some Pros and Cons on matter of FDI in
retail in India as below, which I have gathered from news media and add my
thoughts.
Pros:
-
As new global retailers will invest in infrastructure
to build warehouses and logistics, it will reduce wastage
-
Organized farmer and manufacturers can feel more
secured, as they will enter into contract with global payers for their production,
also will enjoy higher reach for their production
-
New and better technology will be introduces by
global retailers in the sector, it will help to be more productive and to
improve quality
-
Consumers will/can have better value for their
money as mediators will be reduced and access of global products
-
Large chunk
of educated youth will have better opportunity for job
-
Major beneficiaries are educated youth,
organized farmers and manufacturers, consumers, production oriented countries
like China, infrastructure and logistic companies and definitely global
retailers
-
Small/marginal farmers and manufacturers will
have hard time to compete with global and local big players, law of survival of
the fittest will prevail
-
Many mediators and mom – pop store owners will
be at loss, even some need to change their profession
-
Manufacturing oriented countries like China will
have access of large market of India
-
New entrepreneurs will have hard time to
establish them selves
-
Global players’ dominance will increase in Indian
economy
-
More trend for urbanization will be observed,
rural market will suffer, as people living near big cities will try to get
products from big outlets on weekly or monthly basis
- Major loss will be for small farmers and manufacturers, rural market players, mediators, mom-pop stores
In
above context, I also would like to add more thought on existing situation of
Indian economy and market
-
Gap between wealthy and poor are increasing
-
Despite Govt. efforts to reduce migration from
villages, urbanization trend is being experienced in all over India
-
Many of our traditional players like cobbler,
carpenter, tailors, mom – pop store owners are loosing or already lost shine
-
Infrastructure needs to be improved for wastage reduction,
better productivity, increase quality and reduce prices
-
Retail process needs to be more transparent to
save consumers from wrong practices by mediators
Looking
at these situations, I believe FDI in retail is like ‘riding on a tiger’ which
needs very well planning and strategies, I hope we will able to deliver both.
sincerely
drupad
h. solanki