Center opens up debate on FDI retailing

RetailThe Centre has asked for suggestions from many different stakeholders, regarding the issue of opening up a foreign direct investment (FDI) in the multi-brand retail trading. This issue can create tension in both political and business fields in India.

There is a huge need of funds for back-end infrastructure, leading to a case for opening up of the retail sector to foreign investment.

Simultaneously, pertaining to the Indian context, there is an opinion that doing this in a calibrated manner might be more appropriate. There is also the need to address the problem of back-end infrastructure.

To ensure growth the agriculture sector of the economy needs well-functioning markets. Apart form that employment and economic prosperity in the rural areas hold the key for the success of any economy.

For such developments and growth, huge investments are required and allowing FDI in the front-end retail operations will undoubtedly generate proper output.

Also, FDI in retail can be an efficient means of addressing both the farmers' and consumers' concerns, and also help in the removal of structural inefficiencies.

Besides, FDI in retail can also help in sharing technical knowledge in setting up efficient supply chains also help bring about development in farmer income, and lower consumer prices and inflation.