Why FDI in retail is good news

Even a modest chain of 200 supermarkets, to be set up all over India in selected towns and cities in the next three years, will require an investment of about Rs 2,000 crore (Rs 20 billion), at the rate of Rs 10 crore (Rs 100 million) per supermarket to cover the infrastructure and working capital.

Each supermarket may take 2 or 3 years before it becomes profitable. There is a risk that a few of them may even fail.
How many Indian entrepreneurs will be willing and able to commit this level of investment and undertake the risks involved? That is where the international experience and skills that may come with FDI would provide the confidence and capital.

http://www.rediff.com/money/2005/jul/22spec1.htm