The Government of India has opened the door of foreign direct investment in retail sector of India by giving the permission to invest in (51% in case of Multi-brand retail OR 100% in case of Single-brand retail) the joint venture with some Indian entities. Most of the opposition parties & some of the erstwhile allies of the ruling party have vehemently opposed the decision but the GOI is hell-bent to implement it.
Some pros & cons of this decision can be the following:
PROS:
1) A good chunk of foreign exchange will be siphoned into the Indian economy
2) Job opportunities for literate Indians
3) Better supply chain management
4) Farmers/ Manufacturers of raw materials are expected to get better price of commodities
5) Better pricing of products due to huge competition
6) Better standard of products & more customisation as per the customers' requirements
7) Fluctuation in prices of necessary commodities due to hoarding may get minimised
8) Availability of non-seasonal products due to better preservation
and many more...
CONS:
1) Loss of job of the countless middlemen
2) Unemployment of illiterate people who used to give labour in transporting of materials (as most of the works will be mechanised)
3) Cartelisation of the retail chains
4) A powerful lobby in retail sector who could alter the political scenario in India thereby gaining decisions more favourable to them
I would like to know the views of all the TJ members on this topic. I hope everyone will contribute to make it a meaningful discussion.
Some pros & cons of this decision can be the following:
PROS:
1) A good chunk of foreign exchange will be siphoned into the Indian economy
2) Job opportunities for literate Indians
3) Better supply chain management
4) Farmers/ Manufacturers of raw materials are expected to get better price of commodities
5) Better pricing of products due to huge competition
6) Better standard of products & more customisation as per the customers' requirements
7) Fluctuation in prices of necessary commodities due to hoarding may get minimised
8) Availability of non-seasonal products due to better preservation
and many more...
CONS:
1) Loss of job of the countless middlemen
2) Unemployment of illiterate people who used to give labour in transporting of materials (as most of the works will be mechanised)
3) Cartelisation of the retail chains
4) A powerful lobby in retail sector who could alter the political scenario in India thereby gaining decisions more favourable to them
I would like to know the views of all the TJ members on this topic. I hope everyone will contribute to make it a meaningful discussion.