The Indians against FDI in retail trade - Coursework Example

A Proposal for the case of the Indians against FDI in Retail Trade To From A Proposal for the case of the Indians against FDI in Retail Trade I write this letter to provide a solution to the recurring problem faced between the Indian government and U.S Supermarket chain in FDI retail. The problem is that the Government of India and other members of the business community are not passionate about letting the supermarket chain retail in the Indian market (Mukherjee & Patel 2005). Whereas, the director of the company believes that the firm will increase sales in India that will grow rapidly, an opportunity that is not affordable to be missed.

Due to this fact shopping in India has become difficult due to few retailing firms in the country that provide poor services and badly pay their employees (Tyagi 2012). I would suggest that the government of India look into the retail FDI regulations for it is an important aspect of the current economic scenario in India. It has been observed that arrival of organized retail supported by foreign direct investment, have posted immerse growth in the retailing sector. The problem of regulation of the FDI retail will limit private funds from overseas into products and services.

FDI also plays a growing and extraordinary role in global business. Regulating FDI, limits marketing channels, access to new technology, products, skills and financing (Gaur 2006). I propose that the government of India should let FDI retail trade of supermarket chains in the Indian market. By doing this, India will significantly flourish in terms of consumer expectations and quality standards (Mehrotra 2007). Apart from that, allowing the retail sector will look into the serge of the country’s GDP and economic development (Mehrotra 2007).

In addition, it will create employment, a better paying one, which the local unorganized sector for instance Kirana retailers and other smalltime retailing shops have failed to provide to the individuals employed in the sector. Bibliography Agarwal, P &Tyagi, E 2011, Foreign Direct Investment in Indian Retail Sector – An Analysis. New Delhi, Investment & Outsourcing, Legal Articles. Gaur, M 2006, Indian affairs annual, 2006: chronology of events (1 April 2005 to 31 March 2006). Delhi, Kalpaz Publications.

Mehrotra, N 2007, Indian retail sector: a primer. Hyderabad, India, ICFAI University Press. Mukherjee, A & Patel, N 2005, FDI in retail sector, India. New Delhi, Academic Foundation. Tyagi, K 2012, Impact of FDI on Retail Sector in India. New Delhi, Education Business Carrer.