thanks Veeral Sir for clarifying my doubt .  This step also seems similar to 1991 liberlization reforms ...

Effects may be as follows.

1-demand of indian currency will increase hence indian currency would strengthen in short term.

2-more employment opportunities.

3- better services to customers & producers

Originally posted by : *RENU SINGH *
	thanks Veeral Sir for clarifying my doubt .  This step also seems similar to 1991 liberlization reforms ...

Yes, current reforms are like a dramatic push to reverse the nation's economic decline and boost capital flows from overseas and hence similar to 1991 reforms.

Originally posted by : CA Lokesh Pokharna (Jain)
	Effects may be as follows. 1-demand of indian currency will increase hence indian currency would strengthen in short term. 2-more employment opportunities. 3- better services to customers & producers

That's true...Three cheers for the reforms  !

Originally posted by : CA Lokesh Pokharna (Jain)
	Effects may be as follows. 1-demand of indian currency will increase hence indian currency would strengthen in short term. 2-more employment opportunities. 3- better services to customers & producers

Still better,more companies to audit.... :D 

Mujhe nahin lagta jaisa ki aap soch rahe hain waisa kuch hone wala hai.Jo log iske paksh main badi-2 dalilein de rahe hain lagta hai unki family main sab service class main hi hai koi bhi shopkeeper nahin hain.Aur rahi baat farmer ki, ki unhe unki fasal ka achcha price milega toh woh yahan par koi daan-poonya karne nahin aa rahe hain ji cheez unhe aur jagah sasti milegi woh bhartiya kisano se jyada price par kharidenge.Mujhe nahin lagat woh yahan par infrastructure develop karne main paisa kharch karne ko lekar intrested honge kyonki woh yahan par bussiness karne aa rahe hain unhe yahan ki janta se koi vote nahin chahiye jiske liye woh desh main infrastructure create karenge.

DEAR EXPERTS,

                           FDI ON RETAIL HAS BEEN A THORNY ISSUE OVER THE YEARS WITH DIFFERENCES OF OPINION BETWEEN VARIOUS POLITICAL PARTIES COMING TO THE FORE TO THE EXTENT THAT FEW EVEN THREATENING TO TERMINATE THE ALLIANCE. BEFORE, VENTURING FURTHER, WE NEED TO UNDERSTAND WHAT EXACTLY FDI ON RETAIL MEANS AND HOW  IT IS  GOING TO IMPACT THE ECONOMY. WITH FDI ON RETAILS , FOREIGN BIGGIES LIKE WALMART WOULD SET UP ITS BUSINESS OUT HERE IN INDIA  THUS OPENING UP NEW AVENUES OF INCOME GENERATION FOR THE GOVT. AS WELL AS  GENERATION OF JOBS . THE NEGATIVE SIDE OF THIS WOULD BE COMPETITION WOULD BECOME  INTENSE FOR INDEGENOUS RETAILERS AS THEIR FOREIGN COUNTERPART WOULD SELL THE SAME PRODUCT AT A LESSER COST WITH QUALITY ENSURED.  THIS IS THE REASON WHY CERTAIN GROUPS ARE OPPOSED TO IT.

OPENING THE ECONOMY TO FOREGN INVESTORS MIGHT ALSO CREATE THE RISK  OF DUMPING OF PRODUCT IN THE MARKET AND EVEN ARBITRARY OR UNDESIRED TAKEOVER.

IF THE ABOVE PITTFALLS CAN BE TAKEN CAREOF, THEN THERE SHOULD BE NO HURDLE IN THE WAY OF FDI SINCE GOOD ECONOMIC THEORY DEMANDS SUCH INNOVATIVE AND BOLD MEASURES SO AS TO SUSTAIN THE ECONOMY FROM DEBT BURDEN AS ALSO FROM THE INCREASING DEPENDENCE ON IMPORT .

REGARDS

TANVEER MD MASOOD

CALCUTTA.

MNCs have large economic and pricing power due to their large sizes. They do not have much problem with regards to financial capital and can hence resort to using advertising which is a costly affair. Also, these companies are global players who have their operations spread across countries and have effective supply chains which enable them to have economies of scale which smaller players in the domestic market of the host country cannot compete with. All this results in the MNC having cheaper products and more visibility due to the higher amounts of advertising and have been known to push out smaller industries out of business.

Since, Advantages are expected but Disadvantges are clear so at current situation od india FDI should not allowed in India...............

and

HUME MAALIK BANANA HAI NAUKAR NAHI.......................

My mind says that FDI is like a knife, It may help you or hurt you. East India Company was a terrible experience. However it seems impossible in present age. But…!

Pepsi and coke earned a lot of revenue from India and in return they didn’t give any useful contribution to common Indian. They are businessmen, friend. Business world don’t relate to common man’s problems. Market ups when diesel price rises.

Walmart, Metro,Tesco Carrefour etc. are Multinational companies which earns billion dollars as revenue. They will take more than they will give.

Is this the same country which call Mr. M.K. Gandhi as father of nation, who favored self dependency during his entire life. Hey Ram

I may seem bit pessimistic; but we need to be careful.
 

There are few advantages but many disadvantages which we may  not be aware of it, which may actually come after implementation of FDI in retail sectors & aviation, I totally agree with all those who have posted their views, because we will be dealing with totally different culture who now also don't think that Indians can do ...... they think that we are slaves.

Elimination of middleman will not be upto that level as we think , as they are cunning people who will find one or the other way to stay at their position... At the same time farmers are also not ready risk taking as they want quick money/ returns cash basis- --as business is higher the risk higher is the return, they don't give their items on credit so they compromise at less amount, communication should be strong between farmers & foreign retailer then again there will be introduction of another type of middleman..... so one or other way middleman won't exit , strong reforms should be planned &  implemented.....this is my point of view.........

Regards,

sushma

This is a positive approach by Government of India, it will only boast our economy, along with proper usage and less wastage of products, Creation of warehouses and proper supply chain system is added bonus. FDI can't replace a small kirana shop who does a door delivery with smile on his face, only those middle mens who do little productive work and earn maximum margin will be affected, hoarding will be stoped for ever.

It will not have that bigger impact, as thought today.......initially, with just million plus cities, and that too with state govt. approval.....but even later, India's retail market is simply HUGE in size to be changed that quickly.

10-12 years from today, when conditions will be diluted and it will be spread across whole country, I see a scenario in which Big foreign retailers, Big Indian retailers, numerous small retailers and many mid size retailers (a new category, i m expecting) co-exist, with Big foreign retailers at maximum getting 20% market share.

The fact that FDI in retail will affect small retailers very badly is completely misplaced, esp. when we have already seen 20 years of liberalisation in India.

We have Godrej, Videocon etc. competing neck to neck with LG, Samsung. We have Tatas, Reliance grown much bigger in size. We have seen companies like Infosys, TCS coming up and giving employement to millions. Small scale industry has flourished and competing well with biggies.

Did entry of KFC, McDonalds, packaged fast/junk food killed business of halwais? Did small sweet shops perished? Nothing like that happened, but what we see today is more options to consumers.