PERMISSION GRANTED TO FDI TO RUN RETAIL STORES CHAIN IN INDIA WILL BADLY HURT INTEREST OF SMALL TRADERS ALREADY IN BUSINESS

Well Organized Retail Sector

  There will be  unrest and violence in the country in the coming days by those who are engaged in retails business for the last many centuries as the government of India has approved the draft on 24th November, 2011 prepared by Commerce and industry ministry to allow 51% FDI in multi-brand retail and increase the limit on single-brand retail to 100% from the current 51%.  

While UPA-2 is granting permission to FDI to run Retail chains in India who have spoiled the economy of USA and Eurozone, Thailand, Poland, China, etc while contrary to Indian Government decision to allow FDI-President of USA Barack Obama had to tweet to Americans Quote :Today, support small businesses in your community by shopping at your favorite local stores. #SmallBusinessSaturday

The impact of organised retail on unorganised retails was well understood by ICRIER IN THEIR STUDY IN DETAILS, please click below hyperlink to know all about the effects :-

"ICRIER Study on Impact of Organized Retailing on Unorganized Retail in India"

"The proposal approved will spoil the business and profit of small traders and retailers in the  country which is more than 22 crore people who are engaged in the retail business and hawkers who will be badly hitted by government draconian decision. These traders very hardly earn their bread and butter by giving service not less than 14 hours a day.

There is already transitional change in the culture and habits of youngsters who are also eagerly waiting to deal with retail chains such as Walmart, Carrefour, and Tesco who have been waiting impatiently for years to open their stores in India. Once the stores are allowed to open, the new generation will buy the daily used items from FDI stores which will badly affect the business of small traders.

Over the last few years, the government has allowed 100% foreign ownership in cash and carry operations and 51% FDI in single-brand retail, but lack of political consensus has so far kept foreign competition out of multi-brand retail.

Opposition parties like BJP and Communists etc and even some constituents of the UPA like the Trinamool Congress have also expressed anguish over the sanction given to FDI. It is said that the farmer would be benefited as the FDI chain stores will buy their proceeds directly-specially perishable crops which would be stored in cold storage.

Engaged in the real estate business have put pressure on the government to allow 51% FDI investment in the retail business this will open lot of opportunities to those are are linked with real estate  business as per rough estimate nearly  200000 acres land has to be developed for FDI entry, and it is estimated that nearly 5 millions will get jobs but what for those who will loose their business and compelled to work as an employee of retail stores run by FDI in India,

To permit farm produce purchased directly from farmers to be sold through FDI-funded retailers, the proposal says fresh agriculture produce, including fish, meat and poultry, may be unbranded, and will be cheaper in the market, but so far experiences with Big bazaar , Vishal marts show that they sell the products at the same rates at which small retailers are selling in the open market.