India is in serious need of improvement on Foreign Direct investment (FDI) rules, mainly in its retail division. Old-fashioned technology, and the absence of organization and incompetence, has seen the Indian retail industry going down slow and steady which is also bringing down the Indian economy. The Indian retail industry’s has annual revenue of around $500 billion as of 2011 and it employs the second-highest number of people after agriculture, a segment that is naturally associated with the retail sector. Around 90 percent of the retail business is controlled by family operated; small-scale industries while the big chains making just 10 percent of the market. Therefore, Indian suppliers have failed to deliver properly to the customers. In India most of the agricultural products does not reach the market, and some of them are lost due to storage technology and poor transportation. This is a huge loss in any country; particularly in a developing nation where there are still millions people below the poverty line. This lack of organization has directed to inefficiency, which is the root of many complications, mainly the price rises. The basic food items have been affected by inflation and they have been directly related to the incompetent supply chain. So, FDI in the retail division will permit foreign companies to come in the country and make major investments that will considerably update the sector and will also set the nation on a path of additional transformation, and assist to increase the consumer spending as well as check the food inflation. India's prime trial is its structural shortage. When you travel in India, you m must have experienced tremendous traffic on poor roads which are one of the greatest stumbling blocks. India’s infrastructure and the problem of inadequacy are not new, and the government has been trying to get closer since many years. However, India’s economy has grown to a size that will make it very problematic for both the new trades to enter the market and the prevailing business to develop. Due to the bad road conditions the trucks in India are used for less than a quarter of the average in the developed countries. There is a sense of saturation within the economy that is proving to be a discouragement for business and its future prospects. The government has gradually increased the expenditure, but some of the wounds are caused own self. Private trades have been frantically calling for reform in land acquisition, and in its present condition, the absence of restructuring means firms are facing difficulties in making large capital investment. Without such improvement or reassurance for further private investment through mutual insurance funds and foreign funds, India will remain building for the past. The origin of most of the India’s economic distresses is in all the areas that are stated above, all find themselves leading to one common difficulty and that is: the central government in New Delhi. India is in a huge crisis of politics and in the middle of one of the greatest price rises and this problem should be sorted out as soon as possible or else we will see a one of the greatest depression in Indian economy.
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