FDI in retail

I have been reading in various news papers and journals regarding pros and cons of allowing FDI in retail sector. With many views supporting as well as opposing the FDI in retail in India have been written. But I don't see any reason why govt has to call for so much discussion on a subject which is widely accepted as a way of retailing across many successful developed countries.

Still I would like to join the panel and share my view point on the subject. I am a customer of organized and as well as unorganized sector of the Indian retail pyramid and I strongly feel that the sector should be opened up for FDI. Before I put in the reasons for supporting the same let me make everybody understand that there is no comparison and competition between a Small Kirana and a big departmental store. Since both have there own unique markets and expertise to operate.

Without getting into the detailing for supporting the same let me just put a few important points for why it should be allowed.

1. First and the foremost reason for allowing FDI in retail is to support the economy with more tax revenues for the govt in the form of Income and other sales tax from the earlings of the retailers and the consumers.

Around 9 out of a total 10 times when I bought a product from a local retailer I have never been given a proper receipt for the purchases I made at a shop by which the traders evade sales tax as well as personal Income tax to be paid to the govt here by earning a black money, were as a salaried class employee can never do. This itself is enough to cover our all types of deficits in the system and reduce tax brackets across various income levels which again will encourage public to pay tax without evading it.

2.This will directly help the farmers since the bigger companies with their deep pockets and stronger control over businesses help farmers to cultivate and produce better at a minimal cost resulting in a win win situation for both farmers and the retailer as well as to the customers.

3. This will reduce the hoarding and black marketing by intermediaries like traders and wholesalers who only drive the prices higher. And also this are the people who have stronger nexus with bureaucrats and politicians in creating a bubble of price and making money for themselves.

4. Also one of the major reason to allow FDI is it will help employment across the cities , towns and villages with the same or lesser physical work they put in. Currently this labour is employed in the markets working under harsh conditions at the place of work with a very low pay. This will also result in employment for rural youth other than the agriculture. Over all it helps in driving the economy at the grass root level of the country.

These were few reasons few positives to start with and I am sure people have many negatives but I would say let us give a philip to it and address any issues if we face in the future. As far as foriegn companies as a competition to indian counterparts , they will have there own challenges in a country like our to face with where our companies far better than they are.

So I am confident that we will gain across all the societies and help farmers and consumers as well.

One important suggestion always demand for a tax receipt for every product you buy in the market be it for Rs 1/- or 100/- believe me it will help you , me and the country. If any shop owner refuses to give one simple change the shop and also recommend your friends to buy from a shop where the receipt is given.

So practice it and do write in your feedback and views if any on the above subject.