New Delhi: The possible entrance of big foreign retail giants into Indian market has created lots of confusion recently. Most of the political parties, which are the representatives of the general public, are opposed to the government’s move citing loss of employment and opportunity for the retailers. Even earlier, the government’s push for reforms in the form of allowing disinvestment of public sector undertaking and FDIs had invited vehement protest from opposition.

However, scraping the ‘license raj’ and opening Indian market for outside investments by then Finance Minister Manmohan Singh in early 90s is still hailed as a historic move. Putting aside the threat of becoming a laggard to participate in the era of globalisation, Indian market was exposed to foreign products and to an extent the market started to get organized since then.

The size of Indian market is a kind of temptation for top global companies and they don’t want to lose this opportunity to draw huge profit from here. In return, India is getting exposed to the best of products that is available on the planet. It has rather been seen in the recent past that global leaders are actually developing customized products for Indian market.

All these developments are well accepted but when it comes to the retail sector, there is a lot of hue and cry from various quarters. When we talk about retail in India, it is the ‘Kirana stores’ which is catering its services to the people. These shops are unorganized because there is no display of actual price of products which gives a window for negotiation to the shopkeepers. A big effort goes into cracking a deal at lower price and the ability is considered to be a big talent. It is in such nature that the talks on deal continue well after the purchase. People are also expected to be a quality expert and should possess an eye to ascertain the quality of each and every product.

With successful entry of retail giants, there will be more players in the market. An oligopolistic market is anyways favourable for the customers where more competition among companies gives customers an edge.

And, the benefit of having the retail giant like Walmart in India is that all the issues related to price, quality are well addressed. It has such kind of reputation that it takes care of all the required negotiations and is actually a master of game. It is known for its logistical expertise and supply chain. Over the years it has been successful in creating cheaper offer price to the customers. Their CSR activity is also well known to everyone. The founder Sam Walton is known for his ability to connect with the customers and was active in addressing people’s everyday needs in a manner which was never done before.

Hence, is it not required that the government should overcome the political challenges and take decisions pertaining to the issues of ‘Aam Aadmi’. After all, we all live in a nation where the father of nation once called “Customer is god”.

Ashish Ranjan/JPN

Latest News from Business News Desk