Foreign Direct investment (FDI) is a dirty word in India right now.Nobody wants it except Government, industry-heads and traders,who may benefit from it. All opposition parties want this idea to be thrown in the nearest dustbin.
I have a friend,who is selling Tea-bags to Walmart in India for last six months. He is impressed by the back-end facilities,perfect systems and business approach.He believes that his organisation has improved due to his association with Walmart.
I also know a fruits and vegetable trader,who sells his products in Mumbai wholesale market. There are 4 to 8 intermediaries from farmer to fork.At least 15 % of fruits and vegetables parish due to inadequate storage and transport facilities.
I do not want to compare India with other countries like Germany, where opening up retail sector made a great difference to their economy. But basic common sense tells me that it is stupidity to re-invent the wheel- when we can shorten the learning curve by getting the big retailers come to India-invest in infrastructure and create a strong back-end operations.
This benefits everybody,except the politicians.