The decision of 51% stack in FDI in retail will enable reduction in and stabilization in prices, a lot of employments and ensure improved training and development of provide consumers with better and fresher choices in all product categories.
But the main reason of govt. especially Pranab Mukherjee, Finance Minister of India, is to earn money for smooth flow of economy.
In a report issued, “I need the money,” said by Pranab Mukherjee which shows his worry about the financial position of country.”
Today India facing such financial problem like sliding growth, falling stock markets, slumping rupee, dwindling foreign equity investments, in short inflation . And he wanted to do something that slow down the slope.
However the government itself is going to be a worse position of a rapid expansion in fiscal deficit (the gap between government revenues and expenditure) that will make the threat to hit the borrowing up to level of Rs 4.7 trillion. This will affect the subsidy bill that might exceed from previous by Rs 1 lakh crore, reporting by The Economic Times.
The delay in approval of FDI in retail would make Sensex crashing by 400 points the next day, reported by India today. And this report will ultimately lead to the decision of foreign investors investing in India to introduce big-bang economic reforms.
Yesterday, the finance minister of the country said that the hike used to be much lower in the early 1990s.