Praxis Business School, Kolkata, India
Government of INDIA has given permission up to 51% FDI in multi branded retail and 100% FDI in Single branded retail and cold storages. but, many parties such as Trinamool ,Bahujan samaj party and others are opposing the move saying that it leads to lose of jobs. before considering this move as good or bad lets look at pros and cons of the situation
Government has also introduced some rules such as retail shops can be opened only in areas where population is more than 1 million, 30% of the manufactured and processed products should be from small industry and 50% of the investments has to be on back end infrastructure.
Many parties are opposing the move saying that it leads to lose of jobs, but actually there will be no lost of jobs because retails increase purchasing power of the consumer, which means money saved by the consumer is invested in other areas that leads to creation of new jobs in other sectors. So FDI in retails actually helps the country by reducing inflation, helping farmers to get better price for their products and reducing food wastage. but other political parties with out knowing the implications are still opposing the move.