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© 2012 Sanjeev Sabhlok's revolutionary blog
Here's something that has been delayed in India by at least 60 years, but is now finally happening:
the government today allowed 51 per cent foreign investment in the multi-brand retail, paving way for global chains like WalMart, Carrefour and Tesco to open mega stores in 53 major cities.
They should bring in minimum investment of USD 100 million, of which half should be in the back-end infrastructure like cold chains, processing and packaging. [Source]
This simple decision, taken 60 years ago, would have prevented tens of millions of tonnes of food from being wasted, and brought much needed discipline and competition to India.
Look forward to a REVOLUTION in retail in India, now.
A frenzy unprecedented.
A churn with millions of new jobs created and old jobs lost.
I must congratulate the Indian government on this LONG BELATED decision. Well done.
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Vinay Shankar Apprehensions are being expressed on its impact on employment in the country. Is there a comprehensive objective analysis of the socio-economic issues involved? If so it should be wiely disseminated.
Sanjeev Sabhlok Vinay, I'm not aware of the details, but the basic idea is this: inefficient jobs will be lost. Efficient jobs will be created. The net balance in jobs will almost certainly be positive.
Most importantly, all Indians will benefit from dramatically increased competition and vastly superior supply chains that will prevent millions of tons of food from being wasted, and make available vastly superior products at cheap prices.
Each rupee saved will be invested in something else, which will create many more jobs than ever before.
Efficiency, productivity. These are the drivers of jobs and growth.
Would this have saved the Rupee today from depreciation and if yes then by how much? Also if it is so good then why not 100% why only 51%? And I think BJP knows its benefits and is not against it to “save jobs” but just so that if now congress delivers this now they may still win 2014. what ya think?
Allwyn, if dirty politics is going to drive India, then surely India’s interests are ill served.
and my other question : Would this have saved the Rupee today from depreciation and if yes then by how much? Also if it is so good then why not 100% why only 51%? Also some argue that why FOREIGN COMPANIES why not indian companies only can set up those mega malls?
Allwyn, more $ into India would put pressure on INR to increase in value, but that’s NOT the reason why FDI is good. Trade is the best way for both sides of a transaction to benefit. Both become richer. 100% FDI is what I advocate (subject to a ceiling of, say 20%, of total investment from any single nation – this is intended to counter arguments that we will get an East India Company in to India through FDI).
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