FDI in Retail MBA

What will be the possible points which I can add in favor and against on Foreign direct investment (FDI) in retail sector GD topic for MBA students ?

[Pathak]

As you want I am here telling you about the possible points that you can add in favor and against on Foreign direct investment (FDI) in retail sector GD topic for MBA students.

Foreign Direct Investment (FDI) in Retail Sector:

Favor

This will bring modern technology to the country.
Improve rural infrastructure.

It would help build infrastructure and create a competitive market.

Reduce wastage of agricultural produce.

Enable our farmers to get better prices for their crops.

Consumers will get commodities of daily use at reduced prices.

Biggest beneficiary of this would be small farmers, who would be able to improve productivity and realize higher remuneration by selling directly to large organized players and shorten the chain from farm to consumers.

Government too stands to gain by this move through more transparent and accountable monitoring of goods and supply chain management systems.

It can expect to receive an additional US$ 25-30 billion by way of taxes

Opening of retail can be seen as a solution for food inflation, which has been confounding policy-makers.

FDI in retail would help in building much needed back end infrastructure.

Investments in cold storage chain infrastructure would reduce loss of agricultural produce and provide more options to farmers.

Against
Interest rates today are as high as 14 per cent to 16 per cent how do we compete with the economies which have a 4 per cent interest rate.

Infrastructure , trade facilitations and labor laws, all these factors collectively don't make India low cost.

Please remember domestic retail normally sources domestically, international retail sources internationally because they source from the cheapest sources.

Even if big retail companies help the farmers in resurrecting their economy, what plan does the government has for millions of middlemen who are part of the business process chain that ensures manufactured products reach end users.

We engage millions of uneducated and semi-educated people at various stages of retail business spread across towns and cities but we are afraid that Tesco and Wal-Mart will only engage smart and educated workforce in small strength, comparatively. Conclusion

Government is taking this decision in good faith. Few persons and lobbies controlling the rates of food commodities in India.

And bringing more competition in market will bring better prices for buyers as well as sellers of commodities.

Parties protesting against FDIs in retail have choice to not allow FDIs in the states they are ruling.

Government should make a regulatory body for the commodity trade as we have for cellular services.