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This is with reference to "Government may allow FDI in sector-specific retail trade" (Business Line, December 27). FDI as a source of funds is a welcome step, but must be reviewed before it is allowed in certain sectors.

Retail trade is traditionally a low-investment sector. It has employment potential. When industry giants enter this space, there is bound to be severe competition; lower margins may not affect high investment operations.

The result could be that the smaller trader is put to serious disadvantage. This could lead to rapid erosion of neighbourhood retail shops.

Will the next stage be mobile-retailing?

T. R. Anandan

Coimbatore

Letters to the editor and contributions can be sent by e-mail to: bleditor@thehindu.co.in

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Govt may allow FDI in sector-specific retail trade

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