Retail sector is already flooded with Indian big-brothers. So why differentiate between the Bigs whether Indian and Foreigners. In addition, incoming of FDI is good for India, in Macro-sense. Although, in Micro-sense, it will surely harm medium and small traders.
Exactly @g_patra . But I think FDI is good to some extent for the development of the country. It brings about the new technologies and capital which is otherwise not available in the country. In the era of globalization, the world has become a one big family and sharing of technologies and capital with other countries are a win win situation for both the countries.
Indian retail sector is not as organized as the western world. This sector depends much more on the small shopkeepers who share a kind of relation with their customers so that the customers do not go for the other vendors because the people have faith in their shopkeepers.
But this thinking of the people of this country is changing as more and more people are migrating from their home cities to others for the sake of employment or other better opportunities.
So they lack the relationship that was used to maintained with the shopkeepers in India. FDI in Indian retail sector will not bring any new technologies with it but will allow large multinational to end a chain that lies between the manufacturer and customers.