A $350-400 billion industry, A mean of earning livelihood for millions and one of the most booming sectors among all.
Today we are going through an age of retail revolution in India. A lot of factors are responsible for this, but the major ones include
• Increase in disposable incomes
• Better infrastructure
• Better quality at reasonable prices
The growth prospects of Indian retail industry are gigantic. Pundits estimate that it will burgeon into a $1-1.2 trillion industry by 2015 i.e. a two fold increase in a short span of 5 years. The rapid growth rate of retail industry has made India a cynosure to the world. The leaders of retail in International market are pouring in funds in Indian retail like never before. They want to hit the nail right on its head but the Govt. of India has put some cap over FDI to save the interest of small retailers.
The current scenario allows up-to
• 100% FDI in cash and carry stores
• 51% FDI in single brand stores
• 0% FDI in multi brands stores
Cash and carry stores provide opportunities of infrastructure development without hurting the interest of small retailers to a great extent as it’s mainly composed of wholesale business.
Single brand stores provide us an enriched and world class shopping experience
Multi brand stores also provide us world class shopping experience but in addition they also act as a single platform for all our general necessities at very reasonable prices. Markers or hyper markets like Big Bazaar, Spencer’s, Reliance, More etc come under the umbrella of multi brand stores.
Of all the above multi brand retailing is most important and impacting. Till now FDI allowed in multi brand retailing is 0%.
Top retailers like Wal-Mart, Tesco , Carrefour etc are lobbying hard to enter into the Indian retail market and even their entry will also revolutionize the Indian retail sector all over again.
Now the question arises why isn’t Govt. not opening up FDI in multi brand retail?
Because with the introduction of multinational companies in multi brand retail, not only we will witness better pricing, even more range of products, more jobs, increased rate of development also it will wreak havoc on the business and life of small retailers.
They will be left in lurch as the can never compete with these mammoth companies in any aspect.
The introduction of large retailers like Big bazaar, Reliance etc have already eaten their share of pie and created a bunch of problems for them.
Many studies suggest the introduction of FDI in multi brand retailing for better growth and efficiency but I have a question to ask here
Wouldn’t it be an injustice to those who are already in hand to mouth feeding situation?
I don’t oppose development but I believe that it should be sustainable. Every life has an equal right to live so the onus lies on Govt., bureaucrats, Industrialists etc that they don’t hurt the living of a large weak group of people just to serve the interest of a small strong group of people.

Contributed by Ankit Maheshwari