FDI in retail: The pros and cons

BT Online Bureau        Last Updated: November 26, 2011  | 11:39 IST

Paving way for the global mega chains like WalMart, Tesco and Carrefour to open outlets in India, the Cabinet on Thursday approved 51 per cent FDI in multi-brand retail. It also increased the foreign investment (FDI) ceiling to 100 per cent from the present 51 per cent in single-brand retail.

It generated a mixed response from the people.

The supporters felt that it will cut intermediaries between farmers and the retailers, thereby helping them get more money for their produce. It will also help in bringing down prices at retail level and calm inflation.

Those were against felt that it will lead to closure of tens of thousands of mom-and-pop shops across the country and endanger livelihood of 40 million people. Also, it may bring down prices initially, but fuel inflation once multinational companies get a stronghold in the retail market

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