The UPA government's decision to put on hold its move to allow foreign direct investment in multi-brand retail (Dec. 6) is welcome. For, it is not only the Opposition but also its own allies that are against it.
But it will be unwise on the government's part to treat the move as just a “hold back,” not a “roll back,” waiting for another day to start the process again.
J. Eden Alexander,
Thanjavur
FDI in retail will benefit our farmers as they can avoid middlemen. Retail giants will bring good infrastructure such as cold storage facilities. Employment opportunities for the youth will increase. Prices will come down and there will be a decline in inflation. Non-Congress parties are opposing the government's move for the sake of opposition.
The choice of FDI in retail must be left to the people — the end-users. When Walmart, Tesco and Carrefour come to our cities, they can work along with small shops. Did small shops close down when Reliance Fresh, More and Big Bazaar opened business?
John Abraham,
Thiruvananthapuram
Wholesalers are opposed to FDI because they invest huge capital and fear that they will be wiped out if retail giants enter the market. A similar hue and cry was raised when big corporates entered the retail sector.
But small retail shops continue to coexist. In fact, the unorganised retail sector is doing better than corporate retail.
M. Ramanathan,
Chennai
Arguments favouring FDI in retail are unacceptable. Farmers will not get a better price because the policy of retail giants is to remove a brand from their stores if its price is not the lowest. Retail giants may source cheaper rice from Thailand and textiles from China affecting local farmers and textile industries. They may employ a few thousands in India but crores of unorganised self-employed shopkeepers will lose their livelihood.
S. Sridhar,
Bangalore
Keywords: FDI, retail sector, investment
