UPA 2 in Center had assured Mamata Banarjee, most important ally of that the decision to allow foreign direct investment (FDI) by multi-brand supermarket chains had been “suspended”. Single-brand retailers such as Nike,Reebok can own a 51% stake in their Indian outlets.Multi-brand retailers can open wholesale warehouses, as long as they do not sell directly to consumers.Government’s decision to allow FDI in Retail business fiercely opposed by the millions of small retail shop owners and people associate with the business. Political parties also fear that they may loose vote banks.
On the other hand,experts believe that big investment by giant supermarket chains may be the best way to to keep food fresh from the farmer’s field to Consumers.It also cut the terrible waste of food caused by the absence of such facilities.According to one estimate,Chain stores account for only 7% of India’s $435 billion retailing business.The most successful retail chain founded by Kishore Biyani has stores in 73 cities, 30,000 employees.
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