Experts list FDI benefits

The much-hyped Foreign Direct Investments (FDI) will not only bring in capital but also bring in technology, modern management practices and hence it would improve the productivity and efficiency in this country, according to Ranjan Ghosh, director of the Goa Institute of Management (GIM).

"FDI would not only bring in capital, but the end result would also benefit the consumers by way of price, quality, services, etc," he opined at a one-day seminar on FDI in the retail sector.

Ghosh further stated that the local organised retail sector was well prepared to fight any competition. "Similarly the unorganised sector has inherent advantages of wider reach, personal rapport and loyalty of consumers, convenience and urgency purchases," he maintained.

The FDI in the retail sector in India would benefit the efficiency of logistics and distribution, create employment opportunities and eventually pass on the benefits to the end consumer, he added.

According to Debashish Patnaik, faculty in economics, BITS Pilani, retail trade in India evolved from the days of small next-door kirana shops to the modern day super and hyper stores, wherein some retailers have grown to a bigger size than many manufacturers.

"The FDI in the retail sector would benefit the consumers, local entrepreneurs and also small and medium players in manufacturing or services. It would also generate employment and make the final consumer a king in real sense of the word in terms of service, quality and price," he added.

Madhav Kamat, former principal of the Mormugao Educational Society (MES) College, said, "Due to FDI in the retail sector, Indian farmers would be benefited. While their goods will fetch more prices, they will protected from cheating by the middlemen."