As Prime Minister Singh recently noted, India needs greater competition to keep food prices in check for the consumer. This would require the government to take a “firm view on opening up the retail trade.”
Opening retail in India to foreign investment will accomplish three key goals for India. It will modernise the Indian retail sector; create greater competition; and help improve on the efficiency of the food value chain. This will minimise the differences between retail and wholesale prices, lowering costs for all of India’s consumers. Source