← All questionsGS3 · 2013 · Indian Economy ·FDI in Retail and Supply Chains
QUESTION 9
GS3
5 marks

Discuss the impact of FDI entry into multi-brand retail sector on supply chain management in commodity trade pattern of the economy.

WRITE IN
4 min
100 words

What the examiner wants

Discuss how FDI in multi-brand retail could reshape supply chains in commodity trade.

DiscussExplain the different sides of the issue, use evidence, and finish with a balanced view.

Demand-wise check

  1. 1Back-end investment: cold chains, warehousing, logistics, reducing wastage≈15 words
  2. 2Direct sourcing from farmers, bypassing intermediaries; better price share≈15 words
  3. 3Local sourcing from small industries; quality standards≈15 words
  4. 4Risks: buyer power over farmers, displacement of traders and kiranas≈15 words

Open in about 20 words and close in about 20.

Answer plan

FDI conditionsSupply-chain changesBenefitsRisks

Where marks usually go

  • Writing about consumer prices only, not supply chain
  • Ignoring the back-end investment condition

Draw this

  • Supply chain before vs after: farmer → many intermediaries → retailer vs farmer → retailer hub

Value addition

  • DataPost-harvest losses estimated at about ₹92,651 crore a year.ICAR-CIPHET, 2015
  • Policy50% of FDI in multi-brand retail had to go to back-end infrastructure.DIPP Press Note, 2012

Mapped topper copies

Reviewed public-source references related to this PYQ. Same-syllabus references are labelled separately.

Links open original public sources. MainsBuddy does not host these answer sheets.