McDonalds favours FDI in retail

New Delhi, June 28 (UNI) McDonalds Managing Director Vikram Bakshi today said FDI in retail would not harm the small traders who will be forced to provide a better deal to the Indian consumers.

Rather the overall efficiency will improve due to competition, he elaborated while inaugurating a two-day summit on organised retailing here.

''The economy is opening up so foreign investment in the retail sector is inevitable. People want a change from the dull 'n' drab kirana store-wala that all of us are used to,'' Mr Bakshi told reporters on the sidelines of the summit.

He also said that ultimately both the corporate and the small trader will create their own niches and co-exist. Though, he did not respond when asked to comment on the lack of a level playing field between the two in terms of infrastructure.

Organised retailing in India is still in infancy, accounting for three per cent of the retail sector. The rest is catered to by small traders. Retailing accounts for a 6.6 billion dollar business worldwide.

The Left has often criticised the governments' policy on allowing FDI in retail as they fear that the unequal competition between the corporate power houses and small traders would ultimately result in job losses for the latter.

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