Is FDI in retail sector good for India?

I think this is a great idea, especially for agricultural produce. Now most of the money is made by middle-men while both the producers (=farmers) and consumer get a raw deal.

Big organized retail could cut out the middle men and could deliver value to producers and consumers.

These middle-men are part of the society, where will they go?

Smart ones will add value in whatever they are doing and they will survive. They can utilize their local knowledge and be a part of new value chain.

Inefficient lot will find it tough to squeeze farmers anymore and will bend (be innovative) or break.

I do not think that it is such a bad idea.

Moreover, FDI limit (I think 51%... need to verify) is a good thing and clause of 30% buying from Indian Small Scale Industries has the potential to more than offset for the job losses of middlemen.

They will do some other business or switch to labor jobs.

There is already a shortage of skilled labor in India.

If India has to compete in a globalized world, it will need a much bigger skilled workforce. Unless people are forced to move out of sectors like agriculture and retailing, costs of labor will keep rising and make India uncompetitive.

In India, both agriculture and retailing are very inefficient. On paper, this inefficiency does boost India's employment data, but in reality it leads to large-scale wastage of India's resources (including human resources) and inflates prices in the economy.

In the long-term, free economies have shown better growth and all-round development compared to "controlled" and "closed" economies.

Excessive socialism has already done a lot of damage to the economy. India doesn't need any more socialism. No, thank you.

Moreover, by preventing FDI in retailing, India will weaken its position in WTO. That is one thing that India can't afford to do now.

If we block their companies, tomorrow they will block our companies. Imagine what will happen if the west asks its companies not to outsource from India.

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Everyone not paying the tax in India, that is one of the factor govt may bringing FDI into retail. when FDI comes at least they pay the taxes.

My opinion that we need to fix our system (corruption) issue rather expecting from other countries. that's again still a dream!

COMPREHENSIVELY !! PUT, ALCHEMIST, case for opening up of retail couldn't be made any better.

I am waiting for IKEA to enter India, They have excellent products for household. I furnished my house kitchen, bedroom etc form Godrej, such a third class products and quality.


I wish IKEA had been there, things would have been better for my life!

Overall it is a excellent move. Think how much employment it will generate once these global retailers come to india!

I FEEL THEY ONLY ALLOW OUR COMPANIES UNTILL THEY FEEL IT IS PROFITABLE TO THEM UNLESS THEY WILL FIND ALTERNATIVES WAYS TO STOP OUR COMPANIES, THE OUTSOURCING NEW HUBS LIKE SINGAPORE AND OTHER COUNTRIES WILL HURT INDIA IN OUTSOURCING ANY WAY IN FUTURE. AND MORE CHINESE LEARNING ENGLISH ALSO A POTENTIAL THREAT FOR OUTSOURCING INDUSTRY.

I think the limit should be less than 50%,

This looks like the same problem when computers started to invade India, most of Indians felt threat to their JOB. but today we can't even think life without computers.

I doubt how many lower middle class people will go to the super malls to buy their requirements? Usually they opt for paying one time settlement [cash dues] at the start of the month for their bought goods.

There are more serious issues than this little FDI problem such as the gigantic size scams we are witnessing these days, time taking serious cases [BHOPAL,BOFORS] WITH LITTLE PUNISHMENTS OR NO PUNISHMENT.

What is profitable for companies is not always profitable for the country as a whole.

Outsourcing work to other countries decreases costs for companies in the west, but it also takes away jobs from the local people.

It is for the politicians to decide which side they want to be with - the companies or the people.

With deteriorating economic conditions, populism is getting more popular in the west.

If we stop their companies from coming to India, it would give their politicians a chance to attack the Indian outsourcing industry.

In my opinion, poorer economies are bigger beneficiaries of globalization as they can offer cheaper products and services to the richer economies. It makes no sense for India to be in the anti-globalization camp.

If India opens up the retail sector, a lots of small businesses will have to close down and many jobs will be lost.

However this increase in unemployment will be because productivity per worker will increase.

That is much more acceptable than increase in unemployment that happens when jobs are sent overseas.

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Me too waiting for IKEA .

It is 100% true. I am amazed with the quality of IKEA that too with the reasonable price.

Have you used or just saying because people say so?

I agree it's slightly cheap compare to other but not durable at all.

People who just want for use and through (in rented house) is good idea to buy from IKEA.

For setting up own home it's not recommended at all.

By the way, I am neither against or favor of FDI.

Happy investing!

Quality of IKEA furniture is OK for the price. I have used IKEA furniture for aorund 3 years.

The price is low because the furniture is not made of 100% wood. Another factor for low price is that the furniture is designed with parts that can be shipped in flat packages (thus saving transport costs). The design is also simple because you have to assemble the furniture yourself.

So the furniture is convenient but not of high quality. It is no match for Indian kids.