Omantribune
Oman Tribune
Omantribune
Omantribune Search News
Web Oman
    Google Search Button
      Tribune
- Oman
- Soccer World Cup
- Other Top Stories
- Middle East
- Business
- Sports
- India
- Pakistan
- Asia
- Europe
- Americas
- Columnists
- Editorial
- Oman Mirror
- Special Features
- Cinema
- PDF Pages
- Weather
- Travel
- Currency Rate
- Hospitals
- Pharmacies
- Services
- Flight Timings
- Museum Timings
Omantribune Home Omantribune About Us Omantribune Advertising Information Omantribune Archives Omantribune Subscribe-Form Omantribune Jobs Omantribune Contact Us
Monday, July 28, 2014  

Retail FDI to help domestic firms
CHICAGO Although India has decided to put foreign direct investment (FDI) in multi-brand retail on hold, various experts feel that allowing foreign investments in this area will benefit domestic sectors more than the foreign players like Wal-Mart.

“In my opinion, allowing FDI in multi-brand retail would serve India very well by bringing in the culture of discount stores,” VG Narayanan, a ‘Thomas Casserly professor’ of Business Administration at the Harvard Business School, said. Narayan, who spent the last month in India, said with large international players entering the country’s retail sector, logistics and supply chain management practices will improve, which in turn, will benefit farmers and manufacturers and reduce waste.

“Multi-brand retailers such as Wal-Mart have played a very important role in keeping prices down, while delivering tremendous value to the customers. So, Indian consumers will benefit from lower prices,” he said. This will also create a large number of jobs, not just in the retail sector but also in logistics, construction and manufacturing as well, he said.

The Union Cabinet cleared the proposal to allow 100 per cent foreign direct investment (FDI) in single-brand retail and 51 per cent FDI in multi-brand retail in November last year.

Although, the proposal for single-brand was cleared by Parliament in the winter session, FDI in multi-brand retail was vehemently oppposed by all opposition parties, including ruling United Progressive Alliance (UPA) ally Trinamool Congress, after which the decision was put on hold by the government.

Wal-Mart has been neutral on the issue. “We respect the Indian government’s decision and look forward to a consensus being reached on FDI in multi-brand retail,” Megan Murphy, International Corporate Affairs Manager, said.

However, Lakshman Krishnamurthi, a ‘Montgomery Ward’ distinguished professor of Marketing at Northwestern University’s Kellogg School of Management, said success of allowing foreign retail in India depends “on how you measure success”.

“Wal-Mart entered China in 1996 and it took more than a decade for the China operations to become successful. India in 2012 is a richer country than China was in 1996, on a per capita GDP basis, but the income distribution is skewed with a significant bottom tail.

Press Trust of India
NEWS UPDATES
Oman
Salalah turns tourist hot spot
150 Tabseel sites get ready in Al Mudhaibi
Bait Al Zubair to stay open
Other Top Stories
Army captures Homs gas field as IS advances
5 die in bomb attack on Nigeria church
Eid to be celebrated on Tuesday
97 killed as militias try to capture Libya airport
Cameroon deputy PM’s wife abducted
India
Jurists’ views to be sought on bill to scrap collegium
Government mulls amendments to curb misuse of anti-dowry law
38 held, blame game starts over violence in Saharanpur
CBI inquires into Google mapping of defence installations
India move will boost ties: Nepal
Mobile wallet needs more time to gain fans
Pakistan
Government bid to call out army to secure Islamabad challenged in court
Islamabad saw more sectarian killings in 2013 than preceding decade
Middle East
Al Qaeda rebels kill 8 in Yemen
Militiamen parade bodies of IS rebels in Iraq city
In IS-ruled Mosul, residents in state of fear
No clue about cause of Air Algerie crash
Asia
Tainted Chinese food supplier to withdraw items
Philippines welcomes 100 millionth infant
Malaysian Airlines in financial turmoil
Bali goes ahead with mass dog culls despite criticism
Business
India’s rating to stay stable, says Morgan Stanley
Qatar spending growth at 11-year low
BSkyB to buy German, Italian firms to create EU media powerhouse
New asset bubbles likely to derail tepid global recovery
Cairn looks to extend Rajasthan oil block permit
Reliance Power to acquire Jaypee’s hydro projects
Fox likely to sell CNN despite higher tax bill, may not spin it off
India mulls media blitz to woo foreign investors
Sports
Hungry Ricciardo tastes victory
Dyke calls for overhaul in FA’s governing council
Test poised for close finish between Sri Lanka and S. Africa
Ashmeade, Gemili cruise in 100m
Kittel wins final stage but Nibali is 2014 champ
Dhoni warned by ICC over Jadeja row
Cook misses ton but Ballance makes up for captain

Sports


International

© 2013 Oman Tribune. All rights reserved. Best viewed in 800 X 600 resolution