As political parties across the line are busy deliberating over their stand on the Union government’s decision to allow 51 per cent foreign direct investment (FDI) in multi-brand retail, the decision has evoked mixed response from stakeholders.
While traders’ associations are opposing the decision tooth and nail, saying the decision could ruin small traders, for the Independent Grocers Alliance (IGA), the decision could certainly spell more business opportunities.
IGA is an alliance of independent grocery stores with 5,000 independent stores across countries including the US, Australia, Japan, China, Russia and Thailand.
IGA allows small traders to be part of it, by helping them open bigger stores and helping them compete against international and domestic retail giants.
Binay Kumar, who oversees IGA’s operations in India, says that in the last few days they have been approached by many traders wanting to join them.
IGA officials in India are eyeing 1,000 stores in India in the next five years.
With foreign players looking to enter the retail sector in India, IGA believes that in the coming days, queries from traders would swell.
However, for traders’ body Confederation of All India Traders (CAIT), allowing FDI in multi-brand retail does not augur well.
Praveen Khandelwal, national secretary general, CAIT, says they would soon be holding a governing council meet, to discuss plausible measures and that “democratic tools” would be used to express their resentment against the decision. CAIT claims support from many traders across the country.
CAIT has been opposing entry of foreign giants into multi brand retail saying that the buying power of the large retailers would further weaken the marginal farmers’ position, resulting in a lower share profits to them. They also allege that the big retailers would dictate the production techniques, which would destroy the diversity of Indian agriculture.
