Som Karamchetty, PhD,  Technology & Management Consulting and Business Counseling
Technical & Business Ideas toward Global Development
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FDI in Indian Retail (Year 2012)

The debate about FDI in Retail Sector in India

Government of India had announced 51% FDI in multibrand retail in India. Prior to the announcement, the issue generated intense discussion. At that time, Som wrote a white paper and two shorter versions for possible publication in the Indian media. One newspaper stated that theywould publish the shorter version; they did not.  Both the long and shorter versions are here.

                                                                                               How Can FDI in Retail Benefit India?

Indian government is intent on opening up the retail sector to 100% Foreign Direct Investment (FDI) and the opposition and some writers in the media have been expressing vehement opposition. Mr. Pradeep S. Mehta in the Business Line article suggested that parliamentarians should take a reasoned view of FDI in retail in this monsoon session. If the expectation is for foreign retailers to invest in the agricultural and food processing & storage operations in India, there should be a firm and measurable commitment as US retailers are not the ones that invest in these sectors.





FDI in Indian Retail: Can it be Beneficial to India?

Indian government is intent on opening up the retail sector to 100% Foreign Direct Investment (FDI) and the opposition and some media sources are vehemently opposed. But it is not clear if the arguments on both sides are based on real analysis of the situation and actual commitments. The eagerness of Central Government ministers to get FDI into the retail sector and the stubbornness of the opposition are understandable. However, it is not clear if the respective pronouncements are the results of comprehensive and objective analyses or merely their gut feelings. At the same time, the reports from the writers in the media also lack a deeper study of the structure and composition of the retail industry in the developed countries.

FDI in Indian Retail: Can it be Beneficial to India?

Abstract    

Just as in many countries, the retail

here



This paper presents the arguments and describes briefly the characteristics of the retail sector in the US. The influence of global giants in the retail sector, like Wal-Mart, is likely to be significant and highly beneficial under certain conditions. But at the same time, there appears to be wrong impressions about the areas where these giants would influence the Indian economic sectors perhaps, owing to a lack of understanding of the roles of retail businesses in the West.

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