HYDERABAD: The Centre’s move to allow 51 per cent Foreign Direct Investment (FDI) in multibrand retail sector has thrown up many differing views. It has received both support and criticism in equal measure from people.In Hyderabad too, many seem happy with introduction of FDI in retail but some also list the possible disadvantages.Karuna Gopal, president of Futuristic Cities believes foreign investment in retail will be a boost to the economy. “FDI is critical for keeping Indian economy healthy. We are far behind in attracting FDI when compared to nations like China and even Vietnam. People tend to get skeptical over every decision the government takes.”She further adds, “There should be FDI in other sectors too while strengthening our public distribution system, cold storage facilities, etc.” Anirudh Reddy, an employee of GE Money says, “It will help India develop rapidly and compete with other countries. There will be fair competition for survival which will enable more young investors to start their own initiatives. In this way, they will not have to depend on other companies and it will also create more jobs.”Bringing FDI into retail sector is likely to have an impact on local kirana stores. But Shirish Varma, deputy manager at business development at Intelligroup says, “I don’t think it will affect kirana shops much as these small stores are very convenient and present all over the city. The entry of Walmarts will not see small shops going out of business.”Countries like Brazil and Argentina saw an increase of 37 per cent in net realisation at farmer’s end when they switched to FDI. These countries also saw a fall of prices which benefited the consumer.But throwing light on this issue, Sai Kishore, a student says, “The prices of farmer’s produce will not fall greatly as before a farmer cultivates his crop and transports it, the prices of goods will be fixed. People from Walmart or any other private company will definitely not deal with farmers directly. They deal with retailers in the market yard.” He added, “So, the whole concept of removing middlemen does not stand clear. The retailers fix a much lower price for farmers and sell it to companies at a higher price.”Agreeing with Kishore is Vamsi Rajulapudi, a software engineer.“FDI did help a lot of countries in developing but in the long run I think it has a negative impact. With its advent, we will become dependent on the private sector and indirectly help them improve their economic position,” said Vamsi.He adds, “If the government is so concerned, it should provide some good shops for farmers so they get the right price for their produce without any involvement of retailers.”
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