There have been a lot of questions raised about whether allowing FDI in retail would kill India’s small time retailers or hurt farmers. Here are some doubts clarified.
Will Foreign retailers destroy business of Kirana Store owners?
Has the entry of foreign eateries like Dominoes and Mcdonalds destroyed the business of our local chaat vendors selling Indian snacks? Indian snack still continue to be widely consumed and well loved and their businesses continues to thrive as it always was. There is opportunity for every business either small shops or big retail stores in India.
Will Indian farmers be exploited ?
Farmers in India today receive only a small share of the end consumer price. An organised retail has the potential to drive efficiencies in this chain and increase price realisation for farmers by 10-30 per cent through sourcing directly or closer to the farm. There are many government and non-government agencies to protect farmers in case of exploitation
Will foreign retailers create a monopoly in India's retail sector?
It is impossible for any company or group of companies to create a monopoly. Instead retailing in India will become a competitive market and Indian consumers will be benefited.
Will profits made by these retailers elude India?
Profits earned by the foreign retail stores will not entirely move out of India, as the foreign retailers share will only be limited to 51%, therefore 49% of profit will remain with Indian companies. The government will also earn taxes thereby increasing tax revenues. Another point to note here is that the coming of foreign retail brands in India would increase employment in India.
Will India’s small scale industry be destroyed?
The government has already included a clause which demands that foreign retailers will have to buy 30% of the products from India’s small scale industry. This will definitely protect our small scale industry from Chinese industries and also give them opportunity to establish themselves as, if their products suits these big retailers than they will definitely export those products to their stores situated in other countries.
Will Foreign retailers destroy business of Kirana Store owners?
Has the entry of foreign eateries like Dominoes and Mcdonalds destroyed the business of our local chaat vendors selling Indian snacks? Indian snack still continue to be widely consumed and well loved and their businesses continues to thrive as it always was. There is opportunity for every business either small shops or big retail stores in India.
Will Indian farmers be exploited ?
Farmers in India today receive only a small share of the end consumer price. An organised retail has the potential to drive efficiencies in this chain and increase price realisation for farmers by 10-30 per cent through sourcing directly or closer to the farm. There are many government and non-government agencies to protect farmers in case of exploitation
Will foreign retailers create a monopoly in India's retail sector?
It is impossible for any company or group of companies to create a monopoly. Instead retailing in India will become a competitive market and Indian consumers will be benefited.
Will profits made by these retailers elude India?
Profits earned by the foreign retail stores will not entirely move out of India, as the foreign retailers share will only be limited to 51%, therefore 49% of profit will remain with Indian companies. The government will also earn taxes thereby increasing tax revenues. Another point to note here is that the coming of foreign retail brands in India would increase employment in India.
Will India’s small scale industry be destroyed?
The government has already included a clause which demands that foreign retailers will have to buy 30% of the products from India’s small scale industry. This will definitely protect our small scale industry from Chinese industries and also give them opportunity to establish themselves as, if their products suits these big retailers than they will definitely export those products to their stores situated in other countries.
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