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Debdatta Das

There are mixed feelings about the entry of FDI into retail.

Despite all the excitement in domestic retailing, the entire industry is still uncertain about allowing foreign direct investment (FDI).

While the Government has already started opening up the sector to multinationals in a phased manner, the FDI decision has been engulfed by raging debates across segments. Most industry players have mixed feelings over whether allowing FDI in the sector would lead to multinationals taking advantage of trade rules and conditions according to their benefit, thus putting the Indian players at a disadvantage.

"We wholeheartedly accept FDI in the sector, as long as it is open and transparent. With multinationals in the Indian retailing sphere, it will be a case of survival of the fittest. But whatever happens, it is the consumer who will benefit under all circumstances since competition will create greater choices for them. What we have a problem with is the way the FDI is being opened up to the foreign players. Either allow them to be present in any format they desire or don't allow them at all. There should be no restrictions like being allowed only in the wholesale format, for we all know that the Wal-Marts are not here just for cash-and-carry retailing. The spirit of the policy should not be violated," says Atul Joshi, Senior President of Subhiksha.

Gibson G. Vedamani, CEO of the Retail Association of India, says FDI should be allowed in phases, with certain regulations and conditions to safeguard the domestic players.

But all said and done, with all the activity happening in retail, India might achieve in 15 years what China did in 25 years. Not to forget the benefits to the economy as a whole - such as the creation of almost 15 million jobs and the varied consumer choices. No wonder then that the Union Minister of Commerce and Industry, Kamal Nath, recently said that after IT, the retail sector, which is poised to rake in Rs 2 lakh crore by 2011, will be the next opportunity to take India ahead in the global arena.

More Stories on : Retailing | Foreign Direct Investment

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