Noted economist and an expert from German Development Institute, Bonn, Tilman Altenburg, has warned the Indian government against allowing foreign direct investment (FDI) in retail sector in a rapid way.
Altenburg, who was in Patiala to take part in a conference on human development and knowledge economy at Punjabi University, here, cited the example of Thailand where allowing FDI in a big way proved dangerous for the large number of small shopkeepers and retailers and the government had to withdraw the move.
“India must learn from German model when it comes to allow FDI. Though our country has very less number of retailers as compare to India, we allowed FDI in a phased manner so that the small traders don't feel the heat from the companies like Wallmart,” said the German economist.
He stressed that the companies like Wallmart should not be allowed to enter in traditional retail businesses as the move could ruin the tradition and very idea and taste of a region, eventually impacting the culture of the country.
He, however, advocated the need for the open economies keeping in view the increasing global economic needs of countries, which only the liberalised economies could meet.
Meanwhile, the seminar came to end on Wednesday with presentation of 45 papers by experts from across the globe.
Dr Radhe Sham from Tribhuvan University, Kathmandu, was the chief guest at the valedictory session.