Who is for multi-brand retail?
- Big multi-brand retail players from around the globe have been eyeing the huge, lucrative potential in retail in India.
- The Government of India has been wanting to open the doors for the multi-brand retail to the multinationals. Centre has its eyes on the huge foreign exchange that is expected to flow in.
- The existing retail market players - especially the small mom-n-pop stores spread across the nation.
- The opposition parties.
Critics have been alleging that the advent of large multi-brand retail stores will be a huge setback to the mom-n-pop stores of India. A few decades ago, when there were not enough jobs for the citizens, the Government of India had promoted self-employment in a large way and given birth to so many small retail outlets across the length and breadth of the country - small shops managed by the family hence also referred to as the mom-n-pop stores.
Critics have feared that these small independent shops will not be able to cope up with the resources and financial power of the huge multinational multi-brand retailers and may be forced to close down - leading to large scale joblessness.
Brushing aside all these worries, in September 2012, the Government announced that it would allow FDI in multi-brand retail in India and this decision was subsequently ratified in the parliament in December 2012. Today on 1st May 2013, the Supreme Court has quashed the petition against FDI in multi-brand retail.