ELURU: K. Ramamohan Rao of the Department of Commerce and Management Studies Andhra University, on Tuesday allayed fears over the entry of foreign direct investment (FDI) into the arena of retail marketing in the country.

He was speaking at a seminar on `Organised retailing in India -- challenges and opportunities' held at Sir C.R. Reddy College under the aegis of the Department of Management Studies.

`FDI inevitable'

Alluding to the `hue and cry' in some sections over the Foreign Investment Promotion Board's decision of allowing 51 per cent FDI in retail business, Mr. Rao said such fears were unfounded and baseless. He said the entry of FDI would in no way threaten the domestic market. "Entry of FDI is inevitable.

The country has been witnessing a shift from self reliance to dependence and mutual growth in the post-globalisation period," he observed.

The domestic retail consumers favour high standard Indian products and it would be a difficult task for the international majors to foot the bill, he added.

Rising population

Mr. Rao pointed out organised retailing has a huge potential for growth and employment in the country due to the burgeoning middle class population The trend was indicative of changing consumer behaviour and spending patterns.

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