Union Cabinet has decided to permit Foreign Direct Investment upto 51% in retail sector.For sure this was a hot topic of discussion since last December but I do'nt forsee this to be a step towards economic growth.Passing of such a policy has paved the way towards the gradual drifting of the monopoly on the retail sector to the Foreign companies which shall reap the benefits in coming future
For sure this policy promises economic growth and development now but keeping in mind a long term approach I forsee this to be an evil in disguise .It has far more long term negative effects on the economy .We as Indian's do not see this to be in favor of the country rather this to be similar than setting up of East India Company disguised as FDI (I am possibly referring to companies like Walmart and Tesco who are much inclined to set there base in India with the help of this policy) .This has far greater negative consequences in Future as if now the this bill is for cities where the urban population is more than one million, hence it is quite certain that after having conquered the retail sector in the metro cities the same shall also be passed for the non metro cities and towns so in anyway or the other we shall loose the retail sector to the foreign companies. Although this ensure growth and jobs now ,but has long term negative effect on our economy. Probably one must analyze the possible outcomes before making any decision ,and to me this bill indicate the same as it poses some disastrous outcomes in the near future .
It is quite a fact that India need new infrastructure facilities,refrigeration technology,transportation,engineering etc.For sure this bill promises the all of above but at a price over retail sector.It has also put up another question that rather than comprising our retail sector for the interior growth why should the Indian gov take up the charge to improve all ?? This should be a fair acceptable challenge and should be well sorted out and planned rather than depending on the Foreign Investment
For nations like usa uk ,who have trillions of dollars in cash reserve foresee india as a nation with immense of opportunities for investment purposes .For them this FDI seems to be a way to counter the global down slide. By investing in INDIA they not only ensure there future but also monopoly over it .Gradually with a strong hold in India they might have a chance to enter Asia retail sector as well .Probably this might be the only way for sure as it appears to me now.However i do see this policy as a success in the field of aviation owing to the fact that this sector in India requires funds as it is quite in loss .The FDI policy in this sector shall ensure many companies investing heavily thus giving us opportunities and jobs .
Our country is headed by an educated economists ,but i do not consider this to be a wise decision taken by this government although the UPA leaders are very much hopeful that if FDI is allowed in retail sector, millions of job will be created and poverty of Indian rural folks and farmers will be eliminated or at least help in reduction of poverty of India.
Here It is worthwhile to mention here that the Walmart which originated and prospered in USA failed to create considerable job opportunities in USA and Tesco which has its root in Europe failed to create even a lac job opportunity in Europe . West is facing an acute problem of unemployment and financial crisis .By adopting FDI in retail India is going to invite a chain of problems,existing retailers or the local KIRANA stores will be reduced to zero and local vendors will soon make up for a better part of the unemployed force in India.
So now it becomes quite clear that overall this FDI policy is not a win win approach but rather a fail attempt which has compromised the retail sector in India
For sure this policy promises economic growth and development now but keeping in mind a long term approach I forsee this to be an evil in disguise .It has far more long term negative effects on the economy .We as Indian's do not see this to be in favor of the country rather this to be similar than setting up of East India Company disguised as FDI (I am possibly referring to companies like Walmart and Tesco who are much inclined to set there base in India with the help of this policy) .This has far greater negative consequences in Future as if now the this bill is for cities where the urban population is more than one million, hence it is quite certain that after having conquered the retail sector in the metro cities the same shall also be passed for the non metro cities and towns so in anyway or the other we shall loose the retail sector to the foreign companies. Although this ensure growth and jobs now ,but has long term negative effect on our economy. Probably one must analyze the possible outcomes before making any decision ,and to me this bill indicate the same as it poses some disastrous outcomes in the near future .
It is quite a fact that India need new infrastructure facilities,refrigeration technology,transportation,engineering etc.For sure this bill promises the all of above but at a price over retail sector.It has also put up another question that rather than comprising our retail sector for the interior growth why should the Indian gov take up the charge to improve all ?? This should be a fair acceptable challenge and should be well sorted out and planned rather than depending on the Foreign Investment
For nations like usa uk ,who have trillions of dollars in cash reserve foresee india as a nation with immense of opportunities for investment purposes .For them this FDI seems to be a way to counter the global down slide. By investing in INDIA they not only ensure there future but also monopoly over it .Gradually with a strong hold in India they might have a chance to enter Asia retail sector as well .Probably this might be the only way for sure as it appears to me now.However i do see this policy as a success in the field of aviation owing to the fact that this sector in India requires funds as it is quite in loss .The FDI policy in this sector shall ensure many companies investing heavily thus giving us opportunities and jobs .
Our country is headed by an educated economists ,but i do not consider this to be a wise decision taken by this government although the UPA leaders are very much hopeful that if FDI is allowed in retail sector, millions of job will be created and poverty of Indian rural folks and farmers will be eliminated or at least help in reduction of poverty of India.
Here It is worthwhile to mention here that the Walmart which originated and prospered in USA failed to create considerable job opportunities in USA and Tesco which has its root in Europe failed to create even a lac job opportunity in Europe . West is facing an acute problem of unemployment and financial crisis .By adopting FDI in retail India is going to invite a chain of problems,existing retailers or the local KIRANA stores will be reduced to zero and local vendors will soon make up for a better part of the unemployed force in India.
So now it becomes quite clear that overall this FDI policy is not a win win approach but rather a fail attempt which has compromised the retail sector in India
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