In 1991 Narasimha Rao government introduced economic reforms. Many people opposed and discussing about the bitter side of moving more towards capitalism(Or moving away from Socialist Economic Principles). But what we saw in India for last 20 years was tremendous growth in economy. Most of the sectors got the advantage of reforms and many below average citizens moved to average and average citizens moved above average group. Salaries of employees went up and these reforms helped to generate employment in India. Competition in all sectors went up and people got better products. Remember before 1991 when we want to buy a car there was only 3 options(Ambassador,Fiat and Maruti) and what is the situation now? All statistics shows that reforms in 1991 gave citizens in India more opportunities and living standards. Now where are those people opposed these reforms?
Now Manmohan Singh government introduced 51% FDI in retail sector and some people are opposing it just because Retail giants like Walmart will enter into Indian market. They are saying that many people will loose their job due to FDI. The fact is that it will introduce more competition in the market and citizens will get benefits from it. Companies like Walmart will give competition to players like Pantaloon,Reliance etc not to unorganized retail sector. Indian retail players already killed a major part of unorganized retail sector in India. Just think about our new generation. Are they buying products from small shops or from shops like Bigbazar, Reliance, Pantaloon, etc. The death of unorganized retail sector will happen even though Walmart is not entering into Inidan market.
Retail giants like Walmart has very good supply chain mechanism which will help to reduce the margins and people will get products more cheaper. It will help India to reduce the inflation and inflation related problems. These retailers will build better infrastructure and government is going to get more taxes and 49% profits/assets will stay in India. I am eager to see the changes retail FDI can bring in next 10 years.
Now Manmohan Singh government introduced 51% FDI in retail sector and some people are opposing it just because Retail giants like Walmart will enter into Indian market. They are saying that many people will loose their job due to FDI. The fact is that it will introduce more competition in the market and citizens will get benefits from it. Companies like Walmart will give competition to players like Pantaloon,Reliance etc not to unorganized retail sector. Indian retail players already killed a major part of unorganized retail sector in India. Just think about our new generation. Are they buying products from small shops or from shops like Bigbazar, Reliance, Pantaloon, etc. The death of unorganized retail sector will happen even though Walmart is not entering into Inidan market.
Retail giants like Walmart has very good supply chain mechanism which will help to reduce the margins and people will get products more cheaper. It will help India to reduce the inflation and inflation related problems. These retailers will build better infrastructure and government is going to get more taxes and 49% profits/assets will stay in India. I am eager to see the changes retail FDI can bring in next 10 years.
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