Dhaval P Vyas Investment Research

Many of the market participants have been becoming cautious on the back of coming vote on FDI in Retail in Indian parliament this week.

Irrespective of the result of the voting, the FDI voting verdict will decide the future of India’s Retail sector in a major way. It will also throw some light on foreign super-market retail chains  players who have deeper pocket, rich operational experience and most importantly, giant size.

Against the FDI in Retail people strongly believes the possible Retail FDI can snatch Indian jobs and cost dearly to the national employment. Plus, they also believe FDI in Retail can hit the structure of one of the important part of small to medium business communities.

On the other hand, people favoring FDI believe deep in their heart that the FDI in retail sector will open doors to high capital, latest technology, operational know-how. They also see the possibility of general public benefiting due to the possible increase in competition.

Today, a number of the foreign investors and even domestic investors are looking to India for becoming reforms oriented country. If that has to happen, the Union Government of India will be seen taking some tough decision over next couple of years.

However, the reforms look relatively a low possibility to many as there is not much agreement in all political parties of India. Plus, any Union government with no. of coalition parties may struggle to keep afloat politically while trying to put the country into a reforms road-map.

Overall, it looks like the voting on ‘FDI in Retail’ looks like getting the favorable mandate and thus, possibly bringing some positive news for the economy as a whole.