Last year's economic survey too favoured a phased opening of foreign direct investments in multi-brand retail, saying it could help address concerns of consumers and farmers, besides bringing technical know-how.
The survey had emphasised the need to curtail the margin between farm gate and retail prices. This it said could be done by modern supply chain management systems and retail sellers into the picture. A quick way to get at this is to allow foreign direct investment (FDI) in multi-product retail into India.
It had been stated that FDI in multi-brand retail could enable farmers to get higher prices and consumers to have to pay less. Initially limiting international multi-product retailers to a few outlets in each major city had been recommended. This was meant to prevent them from getting full control of the market and, at the same time, set an upper bound on the prices that other retailers will be able to charge for their products.
(Source- http://economictimes.indiatimes.com)
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