FDI in Retail

Growth in Retail Sector is vital for economy, which is likely to result in strong linkage with farm sector and economy as whole. Benefits of multibrand in retail:

1. FDI in multibrand retail could have created upto new 10 milltion jobs in 3 years
2. Curbed wastage of farm products
3. Benefited farmers through better prices for their produce

FDI in retail - main points in bill -

1. Minimum amount of FDI investment is  $100m. 
2. Atleast 30% sourced from small industries. (small scale industries<5Cr capital exp. )
3. Govt will have first right of procuring farm produce
4. 50% of the inflow will be invested in backend

Points to be discussed in GD:
Effect on indian industry (sourcing from small scale industry is 30% as per proposal. It may be increased giving much needed support to SME sector). Effect on small retailers.
Effect on Indian farmers. We have agro based economy. 70% of population dependent on farm sector. FDI in retail will give an support to farm sector ( better pricing, processed food, value added farm products). We are concerned more about the retail sector that is 10% of GDP and employees 4Cr people.
In china organized retail presence is about 10% event after years of FDI in retail. Mom and pop stores can survive easily. They might have to change a bit - keep less stock (varieties and quantities), improve service and change the store layout ( more cleaner and arranged).