Emperor
Juggernaut
asingh said:There are restrictions in place, for them not to run haywire. They can operate in cities where the population is >= 1M. Minimal investment of $100M, of which 50% has to be for back-end operations and supply chain mechanisms. Back - end <> land/property. 30% of the sourcing from SMI.
I think the door has been opened, but not crazy wide. Good decision, should help the economy.
... but who will KEEP WATCH whether they invest 50% of $100M in to back-end operation or doing exactly AS PER agreement? same GOVT!? who kept watch on 2G, 3G, CW Games ...
Before FDI in retail>> Indian Seller buy from Indian producer >> sell to Indian>> Pay to Indian worker they employ>> pay tax to Indian Govt. >> keep profit in Indian bank or at home (any how money keep rotating in Indian Economy)
After FDI in retail>> Foreign Seller Buy from India (any guarantee?)>> sell to Indian >> pay to Indian employee (top management may be not from India) >> pay tax to Indian Govt. (may be at concessional rates) >> Collect profit & deposit in to THEIR respective Country Bank (Indian money went out of Indian Economy)
I'm NOT talking about Big Tycoons who systematically invest Black Money in SWISS BANK but small small grocery shop & general product seller/supplier in Indian City or near to your Society Building & Naka.
I'm not economist nor have deep knowledge about all but my 2 cents.