FDI in Retail Trade in an Emerging Global Food Hub: Possible Consequences

Abstract

The debate on allowing foreign direct investment (FDI) in India’s retail trade primarily focuses on two issues – employment and consumer welfare. Supporters of this move have developed consumer centric arguments while the opponents are more concerned with its adverse impact on employment. This paper tries to highlight the issue from the perspectives of long term food security and systematic transfer of valuable natural resources like fertile land and water, through virtual mode, to developed word. Fertile land and renewable water sources of the farmers will be used, like womb and blood of a surrogate mother, by the transnational retailers.