Summary
The retail sector is in nascent state by comparative standards in India and opening up this sector through FDI route to Foreign Majors will not be in best interests.
Analysis
On the contrary, the Government should regulate big industrial houses to develop this market with local products (Through Super Markets/Shopping Malls/ Trading Centers/or any other available marketing mechanisms) so that the Economy will prosper in the Long Run. In other words, there has to be a proper bridging mechanism between producing centres and retail markets in a country like India. The FDI route should take on the role of MMTC/STC in getting goods/services at internationally competitive prices for those selective goods which are not available locally. The policy , in my view, requires clarity in this regard. Maybe after developing the local players over a period, the market can be thrown open to Foreign Competition so that Efficiency /Competitiveness will improve which will benefit the Consumers at Large.
The Indian Experience in Pre-independence Era; Experiences of few Countries like China, Korea etc will substantiate my View Point.
