FDI in India has hit a roadblock after government decided to put on hold 51% FDI in multibrand retail. FDI in retail has potential to generate lot of jobs and will also help farmers in getting better rates for their yields
FDI will have a significant impact on food inflation from efficiencies in supply chain because the food which is perishable in nature will not be wasted because of anticipated improvement of efficiency.
Argument that foreign players can create the supply chain for farm produce is not very strong one. how can international players build roads, power infrastructure etc. This job has to be done by government. What they can do is build cold chains and storage facility which will help food from spoiling..
One argument against FDI is ....Countries which have allowed FDI have experienced that most of the international retail makes purchases internationally rather than domestic sources which results in loss of jobs in manufacturing sector