Hi Readers,
This is yet another much debated topic in India. After the government was able to pass the FDI on retail sector, almost all the retail stocks gained approx 40% as one of the retail mid-cap stock rallied on the day the bill was passed on both house of parliament.
However, when I sit back and think of this decision, many if and buts arise in my mind. The news of Walmart bribing, and Walmart itself being one of the major contributor in this sector, has made me think where Indian Industry would move. Walmart has gained bad reputation from the way they dealt in Mexico. Moreover, Walmart is the way in which Chinese goods can enter India easily and in much cheaper price compared to India's own production. This is certainly going to pose a good competition to India.
Only, money from FDI is not going to resolve issues in India. India need to resolve the issues inside the country, and not just make attempts to bring more money inflow. The difference between rich and poor is aggregating. India already needs to fight against corruption and control it, if again Walmart gets involved in malpractices in India, it is going to add to the standing problems.
All economist are bullish with government taking up reform majors. I am also hoping, the FDI in retail proves a boon and it actually makes India a better country economy wise.
This is yet another much debated topic in India. After the government was able to pass the FDI on retail sector, almost all the retail stocks gained approx 40% as one of the retail mid-cap stock rallied on the day the bill was passed on both house of parliament.
However, when I sit back and think of this decision, many if and buts arise in my mind. The news of Walmart bribing, and Walmart itself being one of the major contributor in this sector, has made me think where Indian Industry would move. Walmart has gained bad reputation from the way they dealt in Mexico. Moreover, Walmart is the way in which Chinese goods can enter India easily and in much cheaper price compared to India's own production. This is certainly going to pose a good competition to India.
Only, money from FDI is not going to resolve issues in India. India need to resolve the issues inside the country, and not just make attempts to bring more money inflow. The difference between rich and poor is aggregating. India already needs to fight against corruption and control it, if again Walmart gets involved in malpractices in India, it is going to add to the standing problems.
All economist are bullish with government taking up reform majors. I am also hoping, the FDI in retail proves a boon and it actually makes India a better country economy wise.
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