TMC will oppose FDI in retail

It is  praiseworthy that key UPA ally Trinamool Congress today said it is

 opposed to FDI in retail. 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.

Dr.C.Murukadas, Business Standard, Aug.5, 2012