The Instigator
siddharth_p_desai
Pro (for)
Tied
0 Points
The Contender
xxx00
Con (against)
Tied
0 Points

is there a need of FDI in retail in india?

Do you like this debate?NoYes+0
Add this debate to Google Add this debate to Delicious Add this debate to FaceBook Add this debate to Digg  
Post Voting Period
The voting period for this debate has ended.
after 0 votes the winner is...
It's a Tie!
Voting Style: Open Point System: 7 Point
Started: 11/2/2012 Category: Economics
Updated: 4 years ago Status: Post Voting Period
Viewed: 1,801 times Debate No: 26828
Debate Rounds (5)
Comments (0)
Votes (0)

 

siddharth_p_desai

Pro

yes, there is a need of FDI in retail for the benefit of farmers and consumers.
but in india care is taken of only the middlemen.Moreover because of FDI there will be increase in cold storage facilities which is more needed in india.In india almost every 4to5 months there is a case of thousands of kg of pulses being rotten in government storage places.
xxx00

Con

there is no need of FDI in retail in india because:

1. In the first instance, manufacturing sector jobs will be lost in India. Domestic retail primarily sources locally. International structured retail sources internationally, leading to a drop in domestic manufacturing. This is all the more significant since India has not carried out significant manufacturing sector reforms.

2. International structured retail doesn"t create additional retail jobs, it merely displaces existing jobs.

3. Only 18 percent of the Indians are in structured jobs; 51 percent of India"s working population is self-employed. Along with agriculture, retail trade constitutes the largest fountain of self-employed jobs. Structured international retail will be harmful to job creation in India.

4. Fragmented markets serve the public interest much more than consolidated markets. In the first 12 years of opening up retail for FDI, Thailand saw 38 percent of its consumer market consolidate in favour of three large retailers.

5. The oft-quoted example of China is misconceived. China as a low-cost economy is the predominant and largest supplier to the big retailers. It can"t be argued that goods manufactured in China will not be sold only in China.

6. International retailers proceed on the principle of "buy cheap and sell costlier". The initial low prices facilitated by the deep pockets of retailers results in eliminating competition and then raising prices.

7. It is a myth that middlemen will be eliminated and the benefits will go to producers/farmers. The benefits of eliminating middlemen goes to the retailer and not substantially to farmers/producers. International Farm Companies Network (IFCN) data shows that in the US a milk producer gets 38 percent of every consumer dollar spent. In the UK this figure is 36 percent. In India, riding on the strength of the cooperative movement, milk producers get 70 percent of every rupee spent by the consumer.

8. The argument that back-end operations such as cold chains and transport infrastructure will benefit from international retailers is baseless. Building a cold chain is not rocket science; why can"t building cold chains, or rural farm roads coexist with MNREGA?

9. The basic principles of trade negotiations have been ignored while making concessions to the US and EU by agreeing to their proposal on big retail without any corresponding quid pro quo.

10. That an option has been given to the states to implement FDI is a myth being spread to mislead people. FDI is a central subject and not a state subject. International treaties on investment, to which India is a party, require a "national treatment". The deception is a trap for future litigation which may force all states to accept FDI in retail.
Debate Round No. 1
siddharth_p_desai

Pro

siddharth_p_desai forfeited this round.
xxx00

Con

xxx00 forfeited this round.
Debate Round No. 2
siddharth_p_desai

Pro

siddharth_p_desai forfeited this round.
xxx00

Con

xxx00 forfeited this round.
Debate Round No. 3
siddharth_p_desai

Pro

siddharth_p_desai forfeited this round.
xxx00

Con

xxx00 forfeited this round.
Debate Round No. 4
siddharth_p_desai

Pro

siddharth_p_desai forfeited this round.
xxx00

Con

xxx00 forfeited this round.
Debate Round No. 5
No comments have been posted on this debate.
No votes have been placed for this debate.