FDI in Retail

If I think of all the stake holders getting affected in this decision and take a call on how it is going to affect each one of them.. Here is how the picture looks to me.

1. Large Indian retail chains: These are the guys who will probably be most affected. They are the ones who might be forced to make their supply chains much more leaner and cost efficient. They are the ones who will take the biggest hit from this "competition"

2. Small retail shops: The small kirana shops, if you ask me are safe. The same furore was there when the Indian retail was opened to bigger, organised players with deep pockets. However, today everyone plays on their own strenghts and have evolved, adapted

3. Farmers, Suppliers: Better bargaining power, better market for their products and might as well get some guidance (A win win). I dont see the possibility of any exploitation from the "deep pockets"

4. Politicians: Congress - Good move (long pending); BJP - Have to take up a fight to oppose it (Thats what opposition is for - protest without judging the merits of the move)

5. Consumers: We actually are the ones who are most profited as Prof. DTR pointed out.  We will be spoilt for choice now. We will see many more companies competing to provide better service.

6. Macro Economy in general: Now from a marcro economic perspective, This will probably create jobs in sum total. True, there may be some firms that might go out of business. However, the overall economy will restructure itself and I believe that overall, many more jobs will be created.

Overall verdict: I dont see too many cons of this move. Time and again, we have studied that the main problem that India faced in the Nehruvian era was Competition, or lets say the lack of it.This will only enhance competition and hence result in better service overall .. hence..  A definte and emphatic Yes!