For Indians, the word retail has always been synonymous with the local kirana shop—the desi version of mom and pop store. Most of us have grown up buying all day-to-day items from such shops, and were quite happy doing so until the malls and retail chains sprang up. And all of a sudden, we realised what we were missing out. However, until recently, malls and retail chains were only to be found in the metros and the big cities.

But not any more; as the country gallops further in every sphere, the changes and developments are clearly visible; not only the metros and big cities, but the face of an Indian small town is also evolving.

And realising the huge potential that organised retail trade in India possesses, some of the biggest names of the Indian market, as well as from out of India, are jumping on the bandwagon. As a consequence, malls are mushrooming all over the country and real estate prices are skyrocketing.

Public opinion, however, is divided about the entire issue and its various ramifications—while some are happy with the changes, others are not so elated. To understand the scenario in a better manner, we first need to examine the issues at hand—foreign direct investment (FDI) in the retail sector, entry of foreign players, increase in real estate prices, stiff competition to small traders and retailers, unemployment for a lot of people involved in the unorganised retail trade, as well as for middlemen, distributors, and C&Fs.

While there are proponents of the FDI in this sector, who are welcoming the involvement of foreign players, and forecasting a boom, there are others who are strongly opposed to it. They feel that the government should protect the interests of the farmers and other people in the retail trade, and if at all, FDI should be controlled and regulated. They may have a valid point, considering that several other Asian countries have regulated the role of foreign players in their retail trade.

The increasing real estate prices are also an issue. It is becoming difficult for smaller businessmen to run their shops considering the prices. While the real estate industry is making hay while the sun shines, market experts are also of the opinion that the growing prices are not a very good sign and won’t prove beneficial in the long run. Easy accessibility by large consumer groups is the main point of consideration for all the companies, which is causing the property prices of certain areas to grow drastically.

Views of small retailers differ in many ways. Some are crying hoarse about the possible loss of business; others are unruffled by all these developments, confident of the relations they have built up with their consumers. The middlemen don’t have much to look forward to, though some of the companies have stated that they would absorb them into their supply chain.

It’s evident that as with all other things, the retail boom also has its advantages and disadvantages. What remains to be seen is how well the common public does as well as the retailers and the government derive maximum benefit of the positive effects, while minimising the negative effects.

Victor Gruen is known as the father of the modern shopping mall.