FDI in Multi-brand Retail

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saketroy2
Posts: 175
Joined: Mon May 26, 2014 11:23 am

Re: FDI in Multi-brand Retail

#1 Postby saketroy2 » Fri Mar 27, 2015 9:38 am

This is the one which has been debated for so long and still no conclusion on this. I personally think it would be a good idea to have FDI in Multi-brand retail. Different people have different opinions. Some people may give examples of some countries having bad effects op these but actually this doesn;t have bad effects. We still have big retail stores like Big bazar and others ..have we stopped purchasing from the local stores.
Argentina is one example which has shown improvement in farmers conditions when FDI was allowed. We need to replicate the good model , not the bad ones.

shemeem577cms
Posts: 15
Joined: Fri Apr 25, 2014 6:47 pm

FDI in Multi-brand Retail

#2 Postby shemeem577cms » Sat Jul 26, 2014 11:46 pm

Two years have been passed since the Indian government allowed 51% FDI in Multi-brand retail. But till now, not a single foreign company have come and invested in Multi-brand retail in India. This is mostly because of the following reasons.

Firstly, When the Congress led Government passed this bill in the year 2012, there was strong opposition from the opposition party i.e the BJP. And in 2014, the Loksabha elections where to take place. The political situation in India during that time was very uncertain. Since there was greater probability for the BJP, who posed strong opposition to this bill to form the government in 2014, there was uncertainty regarding the government decisions regarding FDI after 2014.

Secondly, Even though the government allowed 51% FDI for Multi-brand retail, the rules where so complicated that the foreign investors will not get benefited from their investment. So in practice, what they have done is that the have opened the doors for foreign investors but they are not allowing them to come in.

Thirdly, In India, for a foreign company to come and start their business, there are so many procedures. They have to get licenses from so many departments and offices. Here the Red-tapism Comes into picture.


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