Opening up FDI  Floodgate 

 Estimates show that India has the highest shop density in the world, i.e. 10 outlets for every 1000 people.  India is emerging as one of the largest retail markets in the world; it is poised to become the third largest retail market, next only to US and Chins, in the near future. The demand for goods and services in the country is growing rapidly due to high rate of population growth, fast increase in disposable income and rapid urbanisation. Therefore, the potential for retail trade is high and growing. In the past decade or so, big retails stores have come up on a large scale, all over the country.  Besides many Indian corporates have also entered the retail market, which has caused the ruin of many tiny retailers.

Many global retail chains are waiting in the wings to enter the Indian retail arena. A Company like Wall-Mart, if it enters India, will sell everything tradable in the retail market, which an ordinary retailer can never imagine selling. The tiny traders will never be able to stand the price war created by these big retailers and as a result they will not be able to survive. These persons will not be able to find jobs in other sectors   because of lack of job opportunities.  Experiences show that even retailers in the organised sector will not be capable of facing the onslaught from firms such as Wall-Mart, if and when it comes. Therefore, allowing the multinational retail giants into India tantamount to opening the Pandora’s Box.

The major  multinational retail giants expected to enter India, once  FDI in multi-brand retail  is allowed, are: Wall-Mart (US), Carrefour (France) , Metro AG (Germany), Ahold  (Netherlands), Tesco (UK), Kroger (US),  Costco (US)  ITM Enterprises (France), Edeka  Zentrale (Germany).  Many single brand retail giants are also waiting for a chance to enter full-fledged in the Indian retail market.