Monday, November 28, 2011

The debate on Retail FDI continues

WHile the debate on retail FDI continues to divide the political spectrum in India, an interesting opinion in the Economic Times by Rama Bijapurkar dismisses fears that the local unorganised kirana retail traders will be wiped out of business fears due to the entry of the large organised foreign direct investment retailers. A paper in 2007 by Mohan Guruswamy and others titled "FDI in Retail III - Implications of Walmart's backdoor entry" paints a more pessimistic picture of entry of FDI in retail unless several conditionalities and steps are undertaken.

The Government for its part had placed a discussion paper on the official website of the Commerce Ministry raising the various issues involved in FDI in retail. It invited views on a number of issues which included the impact of conditionalities on WTO obligations of India.

No comments: