FDI in Retail!

I've read an article in today's Indian Express which expressed concerns that if the FDIs are allowed to source 30% from anywhere in the world then the influx of Chinese goods will triple if no quadruple. right now India has a 20 Billion $ trade deficit with china imagine it doubling let alone tripling or worse.

Im not a tree hugger whos against advancement, but advancing the lifes of IT Jocks[me included] and InvBanking captains "alone" is not what the whole country is about. It should be more about the guy who kills himself cuz he cant feed his children one meal a day. It should be about the lady in her first trimester who carries more weight on her head in a day than what we do our entire life.
 
mehrotra.akash said:
Doubtful since the duties will still remain crazy high like now

Change in prices is little-doubtful, but surely Apple after sales-service will become better...In India, APPLE service is pathetic...I guess, this will be better if APPLE took the operations.
 
I want starbucks, walmart, ikea and better management that comes with retail chains having control over their stores instead of having to rely on local franchises. I dont care if Indian entrepreneurs or foreign ones make money as long as it improves economy and living standards for the common man.
 
IDK, this smacks of a political gimmick. INC has taken the decision without consulting the other states/parties, the other parties will oppose this, ensure that it is withdrawn, portraying themselves as the villains. Next election, this will be shown as a point, we will vote INC back.
 
vivek.krishnan said:
IDK, this smacks of a political gimmick. INC has taken the decision without consulting the other states/parties, the other parties will oppose this, ensure that it is withdrawn, portraying themselves as the villains. Next election, this will be shown as a point, we will vote INC back.

I think just preparing stage to create row in Parliament & help opposition NOT TO run parliament so can avoid various famous decision/bill govt. promise to pass in this WINTER SESSION
 
Sorry for the OT, but do we have a Burger King (I meant the authentic BK not the knock offs) outlet in the country yet?
 
memnom said:
I've read an article in today's Indian Express which expressed concerns that if the FDIs are allowed to source 30% from anywhere in the world then the influx of Chinese goods will triple if no quadruple. right now India has a 20 Billion $ trade deficit with china imagine it doubling let alone tripling or worse.

Im not a tree hugger whos against advancement, but advancing the lifes of IT Jocks[me included] and InvBanking captains "alone" is not what the whole country is about. It should be more about the guy who kills himself cuz he cant feed his children one meal a day. It should be about the lady in her first trimester who carries more weight on her head in a day than what we do our entire life.

Some policies to benefit us would be appreciated as well

Allow international players to compete in all fields

Remove customs taxes from electronics industries

Stuff like that.

Its was put in for protecting industries

When Indian industries havent caught up in 60 years, time to let the developed ones in

If they can get Chinese goods of acceptable quality at cheaper than Indian goods after considering transport costs, then so be it

Let the customer choose between

walmart-local-produce-wide.jpg


And

cimg3498.jpg
 
Gannu said:
Sorry for the OT, but do we have a Burger King (I meant the authentic BK not the knock offs) outlet in the country yet?

India, does not show up on their official page for country listings...!
 
Emperor said:
I think just preparing stage to create row in Parliament & help opposition NOT TO run parliament so can avoid various famous decision/bill govt. promise to pass in this WINTER SESSION

Yes. If there is one thing we all know about almost every politician, they will see their benefit first.

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Gannu said:
Sorry for the OT, but do we have a Burger King (I meant the authentic BK not the knock offs) outlet in the country yet?

Nope. But keep hoping for one ;)
 
Here is what the Minister of Commerce had to say in his letter to the opposing parties

As you are aware, the Union Cabinet has taken a decision for liberalization of the Foreign Direct Investment (FDI) policy in Multi-Brand Retail, which holds the potential of transforming rural economy and unlocking the supply chain efficiencies in the agri-business.

The policy has evolved after a process of intense stakeholder consultation which commenced on 6 July 2010, when a discussion paper was floated by our Ministry. Comments from a wide cross section of stakeholders including farmers associations, industry bodies, consumer forums, academics, traders associations, international investors were analysed in depth before the matter was deliberated by the Committee of Secretaries on July 22, 2011.

The matter was finally discussed by the Cabinet on 25th November and a view was taken to allow liberalization in multi brand retail. In doing so, we have consciously adopted a model with a distinct Indian imprint, recognizing the complexity of Indian society and the competing demands of different stakeholders. Over the years, while we may have transformed into a service led economy, yet even today India primarily resides in the villages and an overwhelming majority of people are dependant of agriculture. It is a tribute to our farmers that India is the second largest producer of fruits and vegetables in the world with an annual production of over 200 million tonnes. Yet, in absence of adequate cold chain infrastructure, logistics and transportation, our post-harvest losses remain unacceptably high. A large part of farmers produce perishes and never reaches the market. A complex chain of middlemen have a cascading impact on supply inefficiencies and prices as well. As a result, on the one hand farmers are unable to secure remunerative price for their produce, while consumer ends up paying more than 5 times the price secured by the farmers.

Opening up FDI in multi-brand retail will bring in much needed investments, technologies and efficiencies to unlock the true potential of the agricultural value chain.

The policy mandates minimum investment of $100 million with at least half going towards back end infrastructure including cold chains, refrigerated transportation, and logistics. We have also stipulated mandatory 30% sourcing from small industry, which will encourage local value addition and manufacturing. It will also unfold immense employment opportunities for rural youth and make them stakeholders in the entire agri-business chain from farm to fork.

I felt it my duty to dispel some apprehensions expressed by certain political parties. In formulating this policy we were conscious of the livelihood concerns of millions of small retailers.

Informed studies of global experience has revealed that even in developing economies like China, Brazil, Argentina, Singapore, Indonesia and

Thailand, where FDI is permitted upto 100%, local retailers have found innovative ways to co-exist along with organized retail and are integral to the organized retail chain. In Indonesia, even after several years of emergence of supermarkets, 90% of the fresh food and 70% of all food continues to be controlled by traditional retailers.

In any case organized retail through Indian corporate entities is permissible in India and the experience of the last one decade has borne the small retailers have flourished in harmony with the large retail outlets. Even then, we have therefore taken a view that in India we may permit FDI upto 51% equity and roll out the policy only in 53 cities with a population of more than a million. In the rest of the country the existing policy will continue, which will ensure that the small retailers are able to access high quality produce at better price from the wholesale cash and carry point.

We were also mindful of the imperative of ensuring food security for the poorest of the poor and have therefore retained the first right of procurement of food grains to rest with government for the public distribution system.

Concerns have been expressed that the multinational companies will resort to predatory pricing techniques to drive away small retail. You are aware that the Competition Commission has been established by law to ensure that such practices receive great scrutiny and I have specially discussed the matter with the Chairman of Competition Commission to build in regulatory capacities to ensure necessary checks and balances. In any case, you will appreciate that predatory pricing works in markets with high entry barriers, which is not the case in India.

The Indian consumer will undoubtedly gain significantly from this step as they will be afforded much greater choice, better quality and lower prices. In the medium term, even RBI governor feels that this step will have a salutary impact on inflation.

I have had occasion to discuss the matter with a wide cross section of all stakeholders, including farmer association, traders, consumer organizations, industry leaders, economists and there is an overwhelming case for introducing this policy. I am sure that being a political leader of long standing and experience, the benefits of this policy for the Indian citizens will find resonance with you. Policy initiatives taken in larger national interest demand political leadership to rise above partisan politics to create a healthy bipartisan consensus. This has been the strength of Indian democratic traditions.

I look forward to your personal support and understanding in the roll out of this policy for the larger public good.

Source: Read Anand Sharma's letter to political parties on FDI in retail
 
i hope government stands strong and pushes this through , this is a much needed reform and hope they dont dilly dally around
 
Hope that FDI gets pass

Thing here is vote bank for opposing parties.

Does government need to take vote from other parties to pass new bill?
 
kuki_295 said:
Here in kota BJP guys are not allowing people to enter "Best price" store. :(

tell them you are 26 members joint family with all of them voted you last time.May be they will allow you in for the sake of 25 votes..lolz
 
This reforms will actually ruin our economy. Instead of creation of jobs millions of people working in current wholesale+ retail sector will be unemployed as all general stores,etc. Will have shut down .

Farmers will be affected badly as they will have to sell the produce at the prices quoted by the foreign players as there wont be any other takers of their produce

Sent from my LG-P500 using Tapatalk
 
asingh said:
What..? Why is that..?

Dad went to shopping so I don't know exact the reason but I guess just to oppose Walmart, there are bjp guys and there's police maybe so that they don't burn bown the store.

They are not allowing people to go in.
 
techno_guy said:
This reforms will actually ruin our economy. Instead of creation of jobs millions of people working in current wholesale+ retail sector will be unemployed as all general stores,etc. Will have shut down .

Farmers will be affected badly as they will have to sell the produce at the prices quoted by the foreign players as there wont be any other takers of their produce

Sent from my LG-P500 using Tapatalk

All that will happen if the chains open in just some 40 cities in the entire country?

Also, if millions of people will be unemployed, with the stores able to operate profitably, it means that their jobs werent needed at all in the 1st place.

So, its reduction of overheads leading to better prices for customers
 
Someone fcuk these politicians who are opposing this bill. I think this will be great for the supply chain management and the product may actually reach directly from farmers to those big retailers like walmart etc which may mean better prices or moreover fresher food stuff.
 
raksrules said:
Someone fcuk these politicians who are opposing this bill. I think this will be great for the supply chain management and the product may actually reach directly from farmers to those big retailers like walmart etc which may mean better prices or moreover fresher food stuff.

Best(or Worst?) thing is that they are opposing it only for political and not any actual reasons
 
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