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Friday, August 05, 2005

India FDI in Retail - Should we emulate China ?

Someone emailed a link suggesting that India should emulate China in their FDI Retail Policy.

WALMART would be the biggest contributor (and gainer) of FDI in India.

China has welcomed WALMART in their Retail Sector.

However they have laid down certain restrictions for FDI in Retail.

Should India follow all of China's policies ?

My viewpoint is that India and China are two entirely different countries with different development agendas and differing economic, social and cultural systems.

We need not emulate China in all their strategies, especially Retail - FDI.

When it comes to WALMART, Indian policy makers should see the long term spin-off benefits for the economy, India's inefficient supply chains and value-subtracting middle men.

India needs to make sure that it's common man - Aam Aadmi (Hindi Translation) gets the benefit of Walmart's Every Day Low Pricing Strategy which has been reported to have been responsible for US inflation figures to be kept under control for the last many years.

As suggested by Mckinsey, WALMART is also reported to have had substantial impact on the US Economy's Productivity figures.

Do we have to protect our perhaps Million PLus Retail Traders or should we look after the best interests of India's Billion Plus Population ?

You decide.


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