FDI in single brand retail is already there. Issue was with multi-brand retail.This is a very interesting question. Which has been debated endlessly on DFI during the 2011-12 timeframe.
So, how many of you are in favour of FDI in retail as of today?
For a whole host of issues read my and ybs reply to bangalorean on ecom thread.FDI in single brand retail is already there. Issue was with multi-brand retail.
Ideologically speaking, I don't mind FDI in multi-brand retail. My only issue is that there should be level playing field between domestic & foreign players. For example, foreign players will get funding or loans at dirt cheap interest rates (like 2-3% per annum) but our domestic companies have to pay interest rates through nose (10-12% per annum). Who will win?. Foreign players will wind hands down by simply flooding hot money available in their countries.
At present the banks in US/Europe get their money from central banks at 0% interest while our banks get it for 8% interest rate. Unless this anomaly is corrected, I would hold FDI in multi-brand retail.
What stops Indian firms to get loans from foreign banks? They actually do that right now.FDI in single brand retail is already there. Issue was with multi-brand retail.
Ideologically speaking, I don't mind FDI in multi-brand retail. My only issue is that there should be level playing field between domestic & foreign players. For example, foreign players will get funding or loans at dirt cheap interest rates (like 2-3% per annum) but our domestic companies have to pay interest rates through nose (10-12% per annum). Who will win?. Foreign players will wind hands down by simply flooding hot money available in their countries.
At present the banks in US/Europe get their money from central banks at 0% interest while our banks get it for 8% interest rate. Unless this anomaly is corrected, I would hold FDI in multi-brand retail.