FDI in Multi-brand Retail: A Senseless Decision

FDI in Multi-brand Retail: A Senseless Decision
In India, there are millions of retail traders, selling daily requirements of food items (i.e. food grains, groceries, fish, meat, etc.) and consumer durables. Many of them also carry on vending of vegetables, fruits, and grocery items through the push carts, which move around residential localities. The retail traders, mostly provision/grocery/consumer durable stores, serve all sections of the society, including the upper middle class and rich people. Even the push cart vendors have regular customers from the upper-middle class and richer sections. It is quite possible that people will migrate to foreign retail chain stores, partly due to the perceived better quality of the items and lower prices. The foreign supermarkets will first destroy the small businesses and then destroy the agriculturist-farmers and other producers with a monopoly. The foreign conglomerates like Wall-Mart will deliberately sell the items for some time at lower prices; they have the capacity to run the business even on loss for a few years. But once they are able destroy the small retail traders and push cart vendors, they will mindlessly raise the prices and restrict the services. Take, for instance, some of the existing Indian retail chains charge Rs. 2-3 for providing carry bags, which is free in the small retail stores. Moreover, they often sell spoiled items for reduced prices. Already the tiny entrepreneurs doing retail trading have a precarious existence. They find it difficult to earn adequate in even for meeting daily requirements. Once the foreign conglomerates enter retail trading, their livelihood will be affected very much. As far as Indonesia is concerned, Mr. Anand Sharma’s contention is wrong. It is a small county. Moreover, reports show that FDI in retail trading has ruined many local small retail shop owners. Therefore, Indonesia has recently imposed many restrictions on foreign retail chains. We indeed are at a loss to understand the need for opening up retail trade, which is the source of employment and livelihood for millions of people all over the country. The argument put forth by the authorities is absurd and hurtful. India has no need for FDI in retail sector; there is no need for the foreign retail chains in India. Let wisdom prevail upon our leaders!