The adverse impact of the FDI would befall the unorganized retail sector with great intensity if the State makes more stringent rules of zoning and regulation. I have been researching the local weekly markets of Delhi for the past three years. These markets are very prominent feature in all parts of Delhi and NCR. There are around twelve hundred weekly markets of which only one fourth are recognized by the Municipal Corporation of Delhi consequence of zoning.
Approximately 2. This figure would just double if we take in to account additional employment that is created around these markets. Various own account and household enterprises are producing commodities on a daily basis for such low end markets. Local weekly markets provide a very easy channel of distribution of commodities produced not only in local small scale industries but also in the neighbouring States. For instance, rubber chappals and shoes made in Agra, sarees made in Surat, hosiery made in Coimbatore, woollens made in Ludhiana are all sold at affordable prices here in these very markets.
Retail Industry in India
FDI in multi brand retail would either displace various wholesale markets or the size of such markets would shrink. Today the local markets run on capital which has a fluid or floating nature. But with the coming of multi brand retail stores this floating capital would freeze and small retailers and vendors will be evicted from the market.
It is argued by the government that FDI in retail would create employment opportunities.
But employment for whom is the crucial question? It would create employment for those who are educated and have professional experience.
Taking cue from my observation in the weekly markets of Delhi I would argue that majority of those now employed in these markets have minimal education and have no professional degrees apart from their marketing knowledge. Now if FDI in multi brand retail comes, it is not in any way going to benefit these traders if they lose their sole means of survival. I have observed in the course of my research that through weekly markets of Delhi hundreds of people have employed themselves who were displaced for one reason or the other.
Much more than documents.
At the same time it has created a distinct market for lower middle class who would not go to a super market or a mall for shopping. Where will this section of population shop for daily needs with the entry of multi brand retail outlets in case it leads to the displacement of weekly markets? Often these are characterized as unlawful, black, or hidden activity.
- FDI in retail: Cabinet approves 51% in multi-brand & 100% in single-brand retail!
- essay india emerging global power;
- top mfa programs creative writing 2011.
It is my contention that in order to make way for the private capital the State might evict street vendors, cancel their licenses, or remove tehbazaari rights for weekly markets in the times to come. Just as in Delhi, Mumbai, Bangalore and other metropolitan cities, the State, has from time to time uprooted slums and relocated them to the periphery of the city, to make way for the investment by private corporate builders in order to make the city slum free.
Similar decisions if taken for the unorganized retail sector would gravely increase inequality and poverty. Email: suvratachowdhary gmail.
Already have an account? Sign in. Sign up for a day free trial. Sign Up. Find mobile-friendly version of articles from the day's newspaper in one easy-to-read list. Enjoy reading our articles without intrusion from advertisements. A select list of articles that match your interests and tastes.
Move smoothly between articles as our pages load instantly. A one-stop-shop for seeing the latest updates, and managing your preferences. The decision will throw a lifeline to some cash-strapped domestic retailers, especially those that have been waiting to exit this sector because of lack of money and experience. Read more on Carrefour. Shoppers Stop. Bharti Group. Follow us on. Download et app. Become a member. Mail This Article. My Saved Articles Sign in Sign up.
Find this comment offensive? This will alert our moderators to take action Name Reason for reporting: Foul language Slanderous Inciting hatred against a certain community Others. Your Reason has been Reported to the admin. To see your saved stories, click on link hightlighted in bold. Common air pollution indicators and their use in economic studies. Importance of outward FDI to the Indian economy. Inflow of FDI has a positive impact on the per capita income of India. Impact of FDI inflows on total factor productivity of India.
Impact of FDI inflows on the exports of India. Impact of FDI on the employment sector of India. Manufacturing industries as the major source of air pollution in India. Impact of gross domestic product on inflow of foreign direct investment in India. Relating exchange rate and inflow of foreign direct investment in India. Impact of inflation rate on the inflow of foreign direct investment in India.
Political and legal system and foreign direct investment in India. Factors that attract foreign direct investment in India. Inflow of foreign direct investment in the agricultural sector of India. Trends of foreign direct investment in India.
FDI in Retailing - Fibre2Fashion
Comparison of the Indian and Chinese economy. Drawbacks and benefits of increasing FDI in retail in India. Research article writing Research article writing service by experienced and highly qualified writers. Each retail giant is expected to open atleast 15 stores across India and to open each store it may require 15 million dollars which can total in billions of dollars in Forex reserves.
Thus it will become critical to save a lot in storage and logistics. The perfect example is the existing cash and carry model in Punjab. References U. Greyhill Advisors. Abhinash Jena Partner at Project Guru. Abhinash has worked in sales, branding, and marketing functions for GPS companies including MapmyIndia Navigators www. Hire us for your research in International Business.