Anita Kong's Blog

India is one of the world’s largest populated countries experiencing economic growth yet it still faces an issue of poverty.  The Indian government recently announced that it was opening its retail market to foreign firms.  This change will impact employment and create structure in the retail industry.  However, small shop owners and opposition parties feel threatened that major foreign investors will drive locals out of business.  In protest, tens of thousands of shopkeepers have locked up their stores for strike.

One of the major challenges India faces is the lack of structure because the industry is made up of small businesses with limited practices.  By bringing in foreign investors, it will open up jobs, ideas for innovation, and methods for sustainable practices.

Wal-Mart, a multinational company, is seizing the opportunity and becoming the first to expand into India.  This will cause locals businesses that are unable to compete to shut down—adding fuel to inflation.  However, new business strategies and the attraction of foreign investment will help to modernize the market to become more efficient.

In the long run, the decision to open the retail market to foreign investors will benefit society as a whole.

References:

http://www.ctvnews.ca/world/opposition-protest-decision-to-open-india-s-retail-market-1.957283

http://www.cbc.ca/news/world/story/2012/09/21/india-foreign-firms-wal-mart.html