Author : DEEPAK. HALAN
Publisher :
Page : 8 pages
File Size : 45,84 MB
Release : 2020
Category :
ISBN :
In 2012, the Indian Government threw open the gates to foreign investment in multi-brand retail in a bid to tap the combined mammoth potential of the retail and agriculture sector.This reform was roundly attacked by opponents saying that it would threaten the existence of unorganised retail or the traditional mom and pop stores. There were also speculations that the reform would lead to exploitation of farmers by foreign retail chains since they would pressurise them to sell their produce at cut-throat prices. All this would put a financial strain on the economy. To unravel this dilemma, we studied the impact of recent economic reforms on FDIin multi-brand retail particularly onthe unorganised retail outlets and also onthe farmers and economy. Primary research amongst consumers revealed that the advent of FDI based multibrand stores would not have an adverse effect on sales ofthe mom and pop stores. We also carried out extensive secondary research to studythe pros and cons of FDI in multi-brand retailin other countriesas well as the relative strengths and weaknesses of foreign retail chains via-a-vis unorganised retail.Findings showed that the weaknesses (and threats) of foreign retailers outnumber the inherent strengths (and opportunities) of mom & pop stores. Moreover there are enough global success stories wherein foreign retail giants have co-existed with the local retail entities and have even taken initiatives to benefit them.The paper thus supports FDI in multi-brand retail in India with arguments from point of view of various stakeholders.