Congress govt has found new way to bring inflation level down because now only it considers people's welfare. It tries to allow FDI in retail sector of single and multiple brands at 100% and 51% respectively. But in reality it will kill manufacturing and distribution line of domestic retail companies also it will make more number of employees in retail sector jobless. Opposition parties and congress allies condemns this move also so many business organizations ignore this even though govt is very much interested on this. Govt says FDI in retail sector increase jobs and decreases price of the products also it will help to take our economy up but i don't know how these are possible. Before Coca-Cola and Pepsi come to India there were many soft drinks in the country but nowadays youth segment not even know their names. At 1990s Coca-Cola’s price was below 5 rupees which was lower than coconut water but now it sells more than 40 rupees. Many developing countries affected this kind of move like Peru, Brazil, etc. When they enter into a new market they will sell their products at low price but if they achieved enough market share price of the products will be increasing month by month. Congress blames BJP's FDI decision on retail sector in 2004 but in reality BJP govt tried to allow only 26% of FDI in retail sector.
Benefits of FDI in Retail Sector:
FDI in Retail sector at specific Level gives for more benefits to India,
1. Products can be reached customers easily.
2. Customers can get all the products.
3. There will be perfect competition among the Retailers.
4. Indian farmers can sell their products at efficient prices.
5. Indian companies can get world reach.
Why foreign companies are very much interested to invest in Indian Retail sector?
1. Buying power of People has increased for last a decade.
2. High population.
3. Easy to promote their products.
4. More products can be sold with low cost (Low salary, Advertising).
Conclusion
There is no doubt FDI in Retail sector will take our economy up only if it is specific level but now in Indian govt allows 51% and 100% . this will definitely affect small scale industries, Krana shops, and Farmers. Also it leads to jobless in Retail industry.
