One of the major worries of permitting FDI in the retail sector in India is that it will cause the majority of the small businesses to shutdown. This article should prove that allowing FDI would not bankrupt all small local businesses. Survival of the fittest will always prune some of the unhealthy ones out.
Here is an excerpt:
According to AT Kearney, since 1992, foreign retailers have pumped USD 3 billion into China, have set up more than 2,200 branch stores, yet sales of foreign retailers make up less than 3.5% of all retail sales in China, indicating that the domestic retail industry is thriving.
Read the full article here.