FDI in multi-brand retailing in India: More bad than good?

Despite the opposition from its own partners, the congress led UPA government at last, has approved the FDI in multi-brand retailing. The most sensitive sector of India i.e, retailing has been opened for FDI. Arguments, debates, seminars and discussions, strikes and lockouts, are going on across the country to take back the decision of allowing FDI in Indian retailing. Though the MNC retail giants bring more benefits to India, but these will be available in the long run. This sector is already being neglected by the government. At the same time, this sector is suffering from major drawbacks. A comprehensive and well structured regulatory body to monitor the activities of retail giants is the need of the hour. Indian retail sector is being under the control of unorganized sector. Indian consumer is not getting the goods and services as per his expectation on the other hand the producers (farmers) are also not getting a handsome returns for their efforts. Thus, with the aim of satisfying the needs of both the stakeholders in retailing. This sector has been opened for FDI. The government is expecting good results in the form of increase in the employment opportunities, good returns for the farmers, 100% satisfaction to the consumers. We can't expect all these results all of a sudden. This requires a time gap. Mean while, Indian retailers should be educated in this regard. Rather, he should be well trained in retail marketing. At the same time, organized retailers should take part in the nation building activities, rather than keep eye on repatriation of capital and profit to the home country. Development of the back end infrastructure and good marketing network is the need of the hour. Both the organized and unorganized retailers should take active participation in the nation building activities and it si the duty of the government to create this type of environment for the both players. The pros and cons of allowing FDI in multi-brand retailing has been analyzed in this paper in detail.