Sustainable economy . . .

The debate of whether or not to allow FDI ( Foreign Direct Investment ) in Retail in India, has gotten me thinking , What does this mean to our local communities ? to the farmer who sweats it out to provide us a descent produce to consume ? the government that struggles between corruption and keeping people's interest alive ? 
What is and what is not at stake here ?


Irrespective of whether FDI retail happens in India or any other country, I feel they tend to impact the local community in huge way. In the case of India, Inflation is on a rise, the basic produce, essentials nutritional products are on rise. IT pay scales have come down ever since the world stumbled upon economic breakdown. Now, 68% of India are based in villages. Who are these FDI-Retail going to benefit ? Probably the top 1% of the bureaucrats who have a vested interest of roping in large profits thanks to the spending spree of the upper and middle class society of  India. This might portray a booming economy yet we fail to realize the bigger picture. Big retail giants dominates European and American economies. Ever since the economic turmoil that rattled these developed nations, local communities have started to realize the importance of community development and creating a local self sustained economy around their villages and cities which eases the pressure on the daily worker / working people. In the US there are small cities, villages where one cannot find the so called Retail giants thriving. It is because, the people there have their own chain of stores which sell the local produce, encourage the local baker, butcher etc. This has started to become a trend in most conservative communities as they realize what is in their interest. 


Now, getting back to situation in India, though the government sees the possibility of FDI bringing in job opportunities and economic development, they fail to realize that, these big retail giants have a ruthless work culture, which might not go well in India. People start to lack compassion and humility. Besides, creating such stores, would deny the opportunity of so many local vendors who tend to hold on to a loyal clientele, thanks to their ability to provide a good discounted price. What could the government actually do to create a sustainable economy ? Encourage the setting up of farmer's market, providing honest subsidiaries for the most essential produce and helping create an awareness of the latest developments in improving productivity and exposure to creating a successful local market.  


All said, I'm looking at the situation with more emotional quotient than practicality. Any thoughts or suggestion on this topic is really welcomed.