The Instigator
manks.101
Pro (for)
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The Contender
InVinoVeritas
Con (against)
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FDI retail policy in India

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Voting Style: Open Point System: 7 Point
Started: 12/15/2011 Category: Economics
Updated: 5 years ago Status: Post Voting Period
Viewed: 2,344 times Debate No: 19883
Debate Rounds (3)
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manks.101

Pro

I think to start with, FDI(foreign direct investment) multi- brand retail policy should be adopted as there is not any issue about the fact that this will effect the fellow shopkeepers .Instead it will give ample opportunities to the unemployed (lower class) and also improve the quality of the product . I don't know that why Indian govt has completely postponed the idea of passing the bill.
InVinoVeritas

Con

"Instead it will give ample opportunities to the unemployed (lower class)"
Corporations predict that a total of 2 million jobs will be created when they infiltrate India's economy. There are 200 million people in India, however, whose jobs depend on the retail sector, which intervention of big business will destroy through forcing small businesses to close and killing local economies.

"Improve quality of product"
Big businesses will monopolize their respective markets in India by destroying all small competitors, and then they will be in complete control of prices, so it will ultimately come at a cost. Also, after monopolizing, product quality will stop mattering, since all small businesses whose products competed in quality would be destroyed. Also, vegetables and fruits that will be imported from outside India will be not fresh and stale due to long distance transportation and constant refrigeration.

My argument is that FDI of major corporations in India will lead to detrimental effects, such as unemployment, destruction of local economies, and the consumers of India will not benefit.

Letting India's economy be hijacked by large foreign corporations is a bad idea.

Thank you.

(http://www.indiafdiwatch.org...)
Debate Round No. 1
manks.101

Pro

"intervention of big business will destroy through forcing small businesses to close and killing local economies. "
How can intervention of big businesses destroy and kill local economies India most of the local areas and villages already have the local retail shops.they wont be affected as the foreign retail investments would be only establishing themselves in metropolitan and centralized cities like Delhi,Mumbai etc. plus PM also said that each and every city can decide whether to have FDI policy in their area or not.

"product quality will stop mattering"
product quality cant stop mattering at all because everyday there are numerous cases of fake dairy products.You may not be familiar with that fact but I am.

"destroying all small competitors"
entering of multi-retail brands such as walmart to india would have no effect on local shops.It will give a good competition to companies like reliance fresh(which is also similar to walmart and yet it hasnot at all had any significant effect on local retail shops.).plus brands like reliance can also learn so much from these foreign brands
InVinoVeritas

Con

"How can intervention of big businesses destroy and kill local economies India most of the local areas and villages?"
Big businesses will destroy local economies by displacing many people affiliated with small businesses, including shopkeepers, hawkers, vendors, and workers.

"they wont be affected as the foreign retail investments would be only establishing themselves in metropolitan and centralized cities."
Who said that they are restricted to metropolitan and centralized cities? Also, establishment of large foreign businesses in metropolitan cities would have to affect neighboring villages and towns, since products will be branched off to them. When FDI hit Thailand, 60,000 small shops closed. Through market saturation, large corporations are able to create widespread impact in an economy.

"fake dairy products"
The opponent is correct that I am unfamiliar with this claim... and I cannot find any information about it. I'm still not sure, though, how it is relevant to my argument that, through monopolization, large corporations can lower product quality due to a huge decrease in competition.


According to a study, when two malls were established next to 82 small shops and 29 hawkers, these were the effects on them:
"-71% of small businesses sampled reported falling sales.
-Sales decline is evenly distributed by value of inventory up to 25 lakhs. It has most
frequently impacted larger shops in the size range of 400-500sq ft and 300-400sq ft
and those less than 100 sq. ft.
-Highest concentration in declining sales by business type was experienced in grocery
stores who, of those sampled, 87% reported a decline in sales.
-63 % of the sample said that they felt threatened by the Malls. 50% of the sample
was expecting serious trouble. 92% said that their children would not continue
with the business.
-Hawkers are facing increasing eviction drives and harassment around the Malls.
41% reported an increase in eviction drives, 24% in harassment by agents of the
Malls, 17% increase in bribes and hafta.
-72% of hawkers experienced a fall in sales and all reported falling profits, which
means falling income for them."

Moreover, there is a negative impact on farming, since large corporations will push farmers to work for them and get involved in single-crop farming and the use of artificial means of farming. Due to monopolization, farmers will have to sell their products to corporations at the offered price, whatever it may be. This is already starting to happen in India.

(http://www.indiafdiwatch.org...)


Debate Round No. 2
manks.101

Pro

manks.101 forfeited this round.
InVinoVeritas

Con

The opponent has forfeited this round. Extend all arguments.
Debate Round No. 3
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