Is FDI in retail good for economy?

GN Bureau | November 25, 2011



The cabinet has finally approved 51 percent foreign equity in multi-brand retail stores and even 100 percent FDI in single-brand retailing. On the whole, this move is in tandem with the reforms, liberalisation and push towards market-oriented economy. As the big, organized retail removes the middle man, the producer (farmer) and the consumers stands to benefit – and we have seen that logic at work with Reliance Fresh, Big Bazaar and other chains. On the other hands, there are concerns that the farmer will be left at the mercy of multinational firms and small shops will be wiped out.

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