FE@CAMPUS MASTERMIND: Response by Kantilal Rathore to question for Jan 7-13
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Response to question for Jan 7-13: FDI IN MULTI-BRAND RETAIL HAS FINALLY BEEN PASSED. WHAT WOULD BE THE IMMEDIATE BENEFITS, AND FOR WHOM?
There has been enough said about how FDI in multi brand retail would benefit the farmers, the consumer, MSMEs and Indian economy as a whole with foreign money coming in. But it would take few years before actually reaping the fruits of these seeds, and see who gets benefited the most. Meanwhile many of the multi brand retail chains have started building their back-end network which would undoubtedly benefit our infrastructure sector.
FDI bill gave a substantial trigger to the market by reinforcing investors' confidence in the government. It has given a strong push to retail sector in country, as many retail giants have already started working on their expansion plans. There are many contradictory theories among political parties and industry experts about long term benefits of FDI, with minimum 30% outsourcing from local manufacturer. Logically, overall GDP of country would increase, farmers would get more returns, end consumer will get benefits, better storage facilities would be implemented and better infrastructure BUT it would take some time, nothing is going to change overnight.
Hence no immediate benefits to anybody are expected of it EXCEPT Indian government, gaining our trust by implementing these reforms ahead of election.
(This entry is part of our FE MASTERMIND contest. The views expressed in this article are personal and not that of the newspaper.)