01-28-2006, 11:33 AM
There isnt enough info available to make up our minds yet. But delaying MNC entry into India does sound like a good idea. Also gradually opening up FDI is another idea that can be used to train Indian retailers into setting up processes and giving them some early mover advantage.
Normal FDI logic doesnt apply to this area and some caution is just what the doc ordered. On one hand walmarts are not projected to be a huge %age of total retail in the country but on the other hand FDI in retail has a potential of affecting aam-aadmi a lot. Perhaps some studies can be done by GoI and a policy paper published on how the GoI intends to prepare the small retailers for the competition.
Normal FDI logic doesnt apply to this area and some caution is just what the doc ordered. On one hand walmarts are not projected to be a huge %age of total retail in the country but on the other hand FDI in retail has a potential of affecting aam-aadmi a lot. Perhaps some studies can be done by GoI and a policy paper published on how the GoI intends to prepare the small retailers for the competition.