When ignored at a party, a little trick that always works is to drop a random line or two on what you think of foreign direct investments (FDI) in the modern retail business. Without a doubt, ears perk up and practically everybody seems to have an opinion—at times considered, at others uninformed. It’s been that way for as long as most of us can remember and arriving at a consensus seemed a chimera.
(This story appears in the 26 October, 2012 issue of Forbes India. To visit our Archives, click here.)
FDI in retail will not close down the local shops. But its impact will be there for every one to see. It will be like the soft drinks which invaded the country. All local soft drinks have disappeared after the entry of Coke and Pepsi. But the pens like Reynolds have only brought comptitiveness among the local brands. The locals will be able to build up competition in the long run
on Oct 12, 2012Kerala, with Congress led government has said it would not allow fdi in retail. This is astonishing as it would go a long way in stabilizing both cost and quality. The whole concept that FDI in retail will write off mom.
on Oct 12, 2012