Allowing the Foreign Direct Investment (FDI) in retail trade can be a risky affair. The FDI, which happens to be a multi-brand retail player, could prove out to be a big blog to domestic trade industries. The retail trade is among the single largest component in the service sector in terms of contribution to GDP. Lately, the SMEs seem to have grown over the years by being organised. However, allowing the FDI in retail sector would definitely go to hamper the small and medium entrepreneurs, thus giving adverse consequences.
By allowing the entry of Big Retail, we run over the risk of having Western monopolies. In the United States, a handful of companies are seen controlling everything right from the food to seed and the shelf. This format is definitely going to fail in Indian market owing to the highly decentralised context which has the attribute of multi-tiered marketing system. The FDI in retail will certainly shun the farmers without creating any new jobs. It will only bring down small traders and industries to dust. So, Parliament should reject this bill which allows FDI in retail market.
MohdZiyaullah Khan
Nagpur, M.S