Gurumurthy Kalyanaram - Liberalization of foreign direct investment in retail business in India (to 100 percent in single-brand and to 51 percent in multi-brand retail business) has met with monumental political resistance. The government is expected to announce that it is suspending all decisions and notifications regarding this decision till a greater consensus is achieved.
Intellectuals including many economists have urged the government to stay the course, and not give in to political pressures. The singular argument of the proponents is that the benefts of liberalized policy in retail (e.g., increased infusion of foreign capital, technology and managerial expertise in retail sector; development of modern and sophisticated logistical technologies and attendant infrastructure including food warehousing and transportation approaches; reduction in transit and other costs and hence lower price to consumers; and reduction in the power of intermediaries between farmers and the market) are well documented in many countries including Argentina, Brazil, Chile, China, Indonesia, Malaysia, Russia, Singapore, and Thailand.
Intellectuals including many economists have urged the government to stay the course, and not give in to political pressures. The singular argument of the proponents is that the benefts of liberalized policy in retail (e.g., increased infusion of foreign capital, technology and managerial expertise in retail sector; development of modern and sophisticated logistical technologies and attendant infrastructure including food warehousing and transportation approaches; reduction in transit and other costs and hence lower price to consumers; and reduction in the power of intermediaries between farmers and the market) are well documented in many countries including Argentina, Brazil, Chile, China, Indonesia, Malaysia, Russia, Singapore, and Thailand.
