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FDI in retail sector
Saturday, November 26, 2011
Couple of days back, India had given green signal to FDI investment retail sector. We are seeing a mixed response on its impact in media.
I still remember early nineties when there used to be protest for introduction of computers in government sector and when a famous food joint opened its operation at Bangalore, but all these died down over period of time. Hence, these days, we find food joints like KFC, Mcdy's, Subways becoming common name in Indian market and co-exists with Indian restaurants. I don't think Indian restaurants had any impact, it only gave consumers more options and also probably, increased Indian restaurant quality in service due to competition.
I still remember early nineties when there used to be protest for introduction of computers in government sector and when a famous food joint opened its operation at Bangalore, but all these died down over period of time. Hence, these days, we find food joints like KFC, Mcdy's, Subways becoming common name in Indian market and co-exists with Indian restaurants. I don't think Indian restaurants had any impact, it only gave consumers more options and also probably, increased Indian restaurant quality in service due to competition.
Also, interestingly, FDI investment was allowed into real estate sector in 2005 and I do not remember any such protest when FDI investment was allowed in real estate sector in 2005. Considering, south east asian crisis, that happened in late 90's, real estate would have been the sector which might have required protection.
This being the case, I do not understand the point in keeping retail sector under protection. By opening up retail sector, I believe its going to provide more options to consumer. When we have accepted 'Washington' apples to be sold at mamaji's shop, what's the point in opposing 'Nagpur' oranges to be sold at MNC hyper market?
