*Krithivasan, e-mail

Even before the FDI route is fully opened up in retail, the organised retail market is expanding rapidly. Foreign retailers are collaborating with local companies to add billions of square feet of floor-space in all cities and towns.

But still, whether FDI in retail will result in lower prices for consumers is a million dollar question. While upper class people prefer malls for shopping, lower income people regularly visit their neighbourhood kirana shops. The higher income group look for a variety of shopping experiences which is possible only with FDI. One cannot expect the modern malls to sell items at lower rates as any business is done only for profit.

S. Nallasivan, Tirunelveli

FDI in retail can result in making quality goods available at affordable prices. They are now adopting a competitive route to find their own way without changing the parameters of business growth. The retailers need to keep innovating to remain competitive in today’s world. The big retail companies can no longer be dependent on the local markets alone. They need to scale up their operations and invest in newer technologies to reach out to various kinds of people in different markets. Wider market assures retailers economies of scale and also higher profit margins. Big retailers bring innovative products at affordable prices. The competition will ensure better business ethics in retail trade.

T.S. Sundareswaran,

New Delhi

Response to Sticklish Issues dated December 24

Even as the economy has been growing at around 9 per cent, overall growth has not reached the farmers and the poor. Though the Central and State Governments have launched a number of schemes for the weaker sections, they have not actually improved their standards. The growth of the agricultural sector is abysmally low and many farmers are still committing suicide.

The Government has realised that schemes and Five-Year Plans have not really helped the agricultural sector to grow. Economic planning has only resulted in the rich becoming richer. Extending the National Rural Employment Guarantee Scheme to the entire country will bring relief to the unemployed villagers. Likewise, the indication provided by the Prime Minister, Dr Manmohan Singh, that the coming Budget will focus on agricultural issues is a welcome sign. However, it must be ensured that the benefits of any scheme reach the targeted group. The public distribution system should also be strengthened to help the rural people get their rations properly.

S. Nallasivan, Tirunelveli

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