India to open economy to global supermarket giants

India’s food minister KV Thomas has come out and said that his cabinet have agreed to allow 51 percent foreign ownership of multi brand retail stores operating in countries such as United States of America and United Kingdom. This
revelation means that India might soon see the rise of corporations such as Wal-Mart and Tesco.

Indian economy has been on the rise since the last six years and this latest reform means that India will be inviting in further global capital in form of foreign investment. If these companies do come to India and invest in the
Indian economy it can have positive and negative impacts.

The companies will provide employment to workers in India but they also can have a disastrous impact on India’s own industry which can suffer due to the strong competition provided by giants such as Tesco and Wal-Mart. KV Thomas
said in his latest remarks to the media that the issue that was being discussed for over the past two years has finally been resolved.

He added that now companies such as Apple and Reebok can also change their ownership structures. On the other hand, Gibson Vedamani of retailer’s organization of India also supported the Food Minister’s decision. He stated, "Consumers
will have many more choices. It will truly be a borderless world in terms of products available."

Congress’ opposition in the Indian parliament have come down heavily upon this latest reform to India’s economic policies as they say that this will in fact lead towards inequality in the country as Wal-Mart etc will only operate
in urban centres rather than in rural ones where real economic problems along with developmental issues lie.

Short URL: https://www.newspakistan.pk/?p=4644

Posted by Hamza Jahangir on Nov 24 2011. Filed under Latest News, World. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry