What are the arguments against FDI in retail?

Answer 1

• FDI will lead to job losses. Small retailers and other small 'Kirana store owners' will suffer a large loss. Giant retailers and Supermarkets like Walmart, Carrefour, etc. will displace small retailers.
• Supermarkets will establish their monopoly in the Indian market. Because of supermarket's fine tuning, they will get goods on low price and they will sell it on low price than small retailers, it will decrease the sell of small retailers.
• Jobs in the manufacturing sector will be lost because foreign giants will purchase their goods from the international market and not from domestic sources. This has been the experience of most countries which have allowed FDI in retail. Although, our country had made a condition that they must source a minimum of 30% of their goods from Indian micro and small industries, we can't stop them from purchasing goods from international markets as per WTO law. So after coming to India, they can reduce this 30% by litigating at the WTO.

• · Allowing foreign players could destroy the livelihoods of millions of small store owners

  · Market prices could be manipulated by foreign retail giants

  · Local jobs could be at threat since the foreign players could purchase many products from abroad

  · There is no established correlation between advent of FDI and improvement of a country's infrastructure