There have been so much outcry about the foreign direct investment in retail sector. All the stakeholders whether opposition parties or retailers have been shouting loud against FDI. It is perhaps the only issue when left meets right and right cherry with left else they are born enemies. Even many parties in the alliance were against the government’s proposal of allowing FDI in retail. Finally the government has called off the decision to allow FDI in retail. So entry of WalMart is postponed for now.
It is contentious issue and people from different strata are bound to have different views on this matter but I feel it's not a right decision. Whatever today government or opposition say or put forth arguments to bring in this important reform, it is inevitable that if not today then tomorrow the organized sector is going to make kill. It will eat on a major part of the businesses of mum and pop stores for sure in a decade or two.
Whenever there is talk about FDI, people come up with stories as how WalMart killed mom and pop stores in different countries. But I am surprised that the same set of people tends to forget that Reliance is no less than WalMart. It is making huge investments in retail sector and will completely change the retail space forever whether FDI in retail is allowed or not. As of now RIL already has 1154 retail store across India out of 1950+ organized stores. Don't you think Reliance will do the WalMart?
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