FDI in multi brand retail - Should we really be concerned

Today as we hear various arguments in favor and opposition of FDI in multibrand retail sector, I find one very important point missing in them. All these arguments and counterarguments whether they were expressed in the parliament or are being expressed through various articles in the print and electronic media have not been able to bring into focus and clarify "why FDI in multi brand retail is significantly different from FDI in single brand retail or FDI in any other sector". Why is it that we should be so concerned about 51% FDI in multi brand retail and not about the 100% FDI in single brand retail.

Is really there a big reason to worry? Is it because the entry of foreign retailers will result into large scale unemployment or is it because foreign retailers will exploit the small farmers of this country which constitute the majority in our agricultural sector. No, the real reason to worry is far bigger than all of these. And that is "the new format of multi brand retail" prevalent across the world. Today giant multi brand retailers are selling almost everything under the sun. This makes them immensely powerful and gives them the capability to influence the entire economy of a country like India where domestic retail sector is largely unorganized. All the production of the manufacturing and agricultural sectors will end up in such retail stores because they are willing to sell everything that a consumer may require in his entire life. In future such retailers can become the only mediators between the production at factories and farms and the consumers. What if they find it more economical to source cheap and better quality products from foreign manufacturers in countries like China (which is today called as the production house of the world). In such case our entire manufacturing and agricultural sector will be under pressure to produce cheap and better quality products as the USP of these retailers is "value for money".

Is our economy ready for such a big jolt. Has the government done thorough analysis of the possible scenarios. If it has it must come up with a report on it so that the people of this country don't panic and welcome the decision. Why should we worry if our economy is ready for it but what if it is not.   

Sandeep Anand