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FDI in retail: Benefits overweigh threats
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Bikky Khosla | 29 Nov, 2011
The government yesterday announced that the retail sector foreign investors who want to set up operations in India would have to source at least 30 percent of their requirements exclusively from Indian micro and small enterprises. Needless to say, this is a piece of good news for the Indian SME sector. In fact, I think that the benefits of approving FDI in retail would outweigh any potential threats to our whole economy.
Allowing FDI in the retail sector, which has long been facing several supply side constraints, will certainly help unclog supply bottlenecks of which we are complaining for a long time as a cause of high inflation. In addition, the retail sector is expected to grow ten times in the next ten years but this level of growth is not possible without expansion of the organised retail sector, which, in turn, is not likely without participation of big global players.
Besides, I think, the opening up will be of benefit for us to generate not only new employment but also better paid and better quality employment instead of killing jobs. In addition, coexistence of small and big retailers is not far from possible. This is happening in many countries with the latter creating niche and finding innovative ways to compete. In fact, Indian retailers already have some competitive edge in form of low overhead costs, cheap labour and less use of technology.
As far farmers are concerned nobody can deny the fact that at present there is a big difference in farm gate prices, wholesale prices and retail prices. Allowing big global players in retail will help to unlock the true potential of the agricultural value chain in the country where the majority of the population is employed in agriculture, not unorganised retail. Removal of the long chain of intermediaries will also benefit customers.
The Indian industry will benefit to a great extent once global retailers will start setting up local operations here and sourcing products from local manufacturers, particularly from sectors like handicrafts, textiles, and food processing. It will also avail opportunities for SMEs to benefit from partnership with big players in product development, deal under signed contract, timely payment, new knowledge about supply chain management, and more connectivity with international channels.
The bottom line: there are more opportunities than threats. However, this is just the first step. The government must go for efficient and effective implementation of policy initiatives; they must ensure that big players do not deviate from the norms stealthily and small players are not completely overrun by them. If not, the benefits may be null, and even negative.
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30%from smes from anywhere in the world and not India specific
kailash | Thu Dec 8 13:25:52 2011
India is a poor country and certainly needs FDI but it should be helpful to our society/to us Indians.
Indian retailers can be pushed to source/buy 30% from msmes but under wto rules (act GATT1994--dhara3 or 11)this rule can not be implemented, it's just a plain lie.
same is for farmers-(america provides15.35lac crore through green box and european countries have paid 12.60 laccrore).if it is true then why european countries have to provide huge subsidy (12.60 lac crore in 2009 alone)to farmers and why there are associations/organisations of farmers, like "Fairdeal Food" scotish union to save themselves from the exploitation of such Retail giants? Records say these retail giants pay much less than other traders e.g. tesco in england pay 4%less price than market price to farmers.
Walmart's revenue is about Rs. 20lac crore and employs about 21lac people while in India Indian retail is also about 20lac crore but gives employment to about 4.50crore people. moreover where there are wallmart stores in more numbers in america there the unemployment is much more/poor ratio is very high than other parts of america.First in america farmers used to save 70cents but in 2005 it reduced to 4% only and still govt. say these retailers saves brokerage and thus can sell at cheaper price. Pls. Has ever any corporate pass on the benefit to other and that is to small buyer?
Actually, hard fact is India govt. is under pressure and some pressure groups are activated to get their desired results.
FDI in retail
m.Vasudevan | Thu Dec 8 01:35:46 2011
I think the above is in line with the globalisation thoughts. What has been told while allowing online and future trading in commodities is the same. In reality only the prices has gone up and the already rich who have access to the online trading get the benefit. Let us not accept FDI in retail.
FDI in Retail..yr Pro Editorial....
Jitendra Joshi | Mon Dec 5 06:20:01 2011
Pl inform how many SMEs are producing FMCG Goods for such retailers??? What products can SMEs offer for such large retail chains? Will they be classified still as SMEs when their turnover exceeds the limit for calling themselves SMEs??? This nothing but illusion or game plan of Cong. Govt to fool the public and industry at large...By just adding 30% buy from SMEs will it be complied to?? Then why not level playing field for between Local Mega retailers and FDI stores?? Why not implement the same with Local retailers first??? How many major retailers are buying from SMEs Volume n Value? No homework is done its just to get money backdoor to improve the fiscal deficit as Govt cannot or does not have any more resources to tap to fiscal deficit..give idea to Govt to generate money without FDI...
FDI in Retail
Pradeep K. Singhal | Sat Dec 3 03:40:26 2011
Now days everybody is talking about the FDI in Retail. Few of them are in favour and few of them are against.
I am one of the persons who are against to it. Not because I am directly effected with it (just to clarify that I am not into the retail business), but because there is no need for it.
Right now we are looking for the lot of new products with lot of employment and modernisation of infrastructure. But we are overlooking a fact that all of this can be done even with FDI. If Govt. really want to improve all of this, govt can invest on PPP basis. In such a case our forex would not go out (which would be go in form of profits, if FDI come).
Our emphasis should be on strengthen ourselves, not in increasing dependencies on others. I am not against the FDI. But it should not be in the sectors, where we can do it at our own. We can opt FDI in research and development of new technology, infrastructure etc. But here FDI would not be interested, because it is not so profitable to them.
FDI retail
VP Marwah | Sat Dec 3 02:12:01 2011
The FDI policy may be good but the implementation part could be a real worry as the corruption levels in India are really high,who knows these multi brand International retailers with their money power can bribe these politicians & bureaucrats to make policies beneficial to them.The checks & balances are not in place & once these big players get settled they will start exploiting the Indian farmer, small manufacturer & then we will be left with no option than to depend on them for our daily needs.It is this threat which over weighs the benefits of FDI retail. Government must think twice before implementing FDI retail otherwise we are in for a big trouble in times to come
........ कौन जबाबदार है?
Manzoor Khan | Fri Dec 2 10:51:38 2011
01 किसानो की फसल खेत में ही नष्ट हो जा रही है,क्यों? कौन जबाबदार है?
02 उसकी फसल को सुरक्षित रखने के उपाय किसे करने थे?
03 उनकी उपज का सही भाव कौन तय करता है?
04 क्यों गन्ना किसान अपनी खड़ी फसल को आग लगा देता है?
05 क्यों आन्दोलन कर रहे हैं कपास की फसल उपजाने वाले किसान?
06 क्यों मनमाने ढंग से कपास के निर्यात पर रोक लगाई पिछले वर्ष जब किसान को अच्छे भाव मिल रहे थे ?
07 किसान को गलत राजनीति का शिकार किसने बनाया ?
08 अपना माल बेचने के लिए आज किसान के पास जितने विकल्प हैं वह FDI आने से कम हो जायेंगे?
09 FDI का एकाधिकार कंगाल नहीं बना देगा ?
10 हमारे पास मिटटी की उर्वरा ,पहचान ,उत्तम खाद और उत्तम बीज का इन्फ्रा स्ट्रक्चर क्यों विकसित नहीं
हुआ ? क्यों नहीं हमने कोल्ड स्टेरोज विकसित किये ?
11 करोडो भारतीय की आजीविका को छीन लेने वाले कानून बनाने के लिए चुना है सरकार को ?
FDI in retail sector
karkavel rajan.D. | Fri Dec 2 09:33:16 2011
30% sourcing from local SME is not enough. This must be 51%. If foreign players are interested let them come. They can develop their own infra also if they need.
FDI in retail
R.Jayachandran | Fri Dec 2 03:40:55 2011
You know more than us then how can you say that FDI in retail will not have major impact? I am a small retailer. With my own capacity I am doing business for my family's livelihood. After allowing FDI in retail You can must forget me and like, because you can get good revenue from FDI. You can promote their products first and lastly us. How can we survive? Apart from this please note after allowing FDI in retail the all prices will go up and inflation will be high. More than 50% Indians will suffer a lot. So always think from the angle of the common Man. Please note that after implementation of FDI in retail, Congress will not have the position of Opposition like what happens to DMK in TamilNadu.
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Re: FDI in retail
Ibrahim Shaikh | Mon Dec 5 05:41:12 2011
After implementation of FDI in retail common men will get "A" grad product complete variety plus quality good environment low price new product Multiple jobs for Indian, As far farmers are concerned nobody can deny the fact that at present there is a big difference in farm gate prices, wholesale prices and retail prices.The Indian industry will benefit to a great extent once global retailers will start setting up local operations here and sourcing products from local manufacturers, particularly from sectors like handicrafts, textiles, and food processing. It will also avail opportunities for SMEs to benefit from partnership with big players in product development, deal under signed contract, timely payment, new knowledge about supply chain management, and more connectivity with international channels.
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Re: Re: FDI in retail
Tomson | Sun Dec 18 12:30:09 2011
What you are saying is absolutely correct. Those who haven't seen the type of Hyper markets etc don't know what it is.That is why they talk against it.In other countries , even for hardware items(like tools,iron & steel products etc) there are hypermarkets and people can do shopping very conveniently in such shops.
Those who oppose the FDI in retail should oppose coming here of establishments like 5 star Hotel chains also , because small tea shops and other similar establishments will get closed!
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FDI IN RETAIL
DHAWAL AMAR SINGH | Fri Dec 2 01:36:53 2011
It will be an unfair competition as implementation of laws are in poor state. It is not a matter of technology, it is the management. Why Indians cannot manage? We are better managers example Amul Co-operative came up against all odds to save time. govt. to ensure better environment to save time and money and enforce laws. Country will come up fast and keeping the generated profits with in the country.
FDI In retail
Anant.K.W | Thu Dec 1 17:10:37 2011
This government is nonsense, instead of making things strong from within they are bringing additional problems to the country. They will never think of having an Indian brand to Grow and expand across the Globe where the money from across the Globe will come to India.
Really very pitiful decision taken by government.
fdi in retail
V K MITTAL | Thu Dec 1 09:31:44 2011
I don't think that fdi IS GOOD in retail.
Indian retailers can adopt the foreign retailers technology and give benefit to producers and consumers.
There were reports in news papers about cartelization of Indian big chain retailer to force the producers to mark higher MRP so that they can show of giving discounts to consumers.
Please check if it is true? Foreign retailers are worse than this.
Why we Indians always use to oppose any BOLD Decision?
Mohit Dhiman | Thu Dec 1 08:22:06 2011
Its been long time since any Indian government have took any BOLD decision. After a long wait something is happening and everyone is opposing it just because of a fear!!.... Come On...if you want something GOOD to happen then you have to take risk...We can't get everything in comfortable zone...Our government is taking and BOLD & CALCULATIVE risk in merely 23 cities, lets check it out and see what happens. Don't be too negative always.
And regarding Opposition like BJP, all they want is parliament not to work, which will result in government failure.
FDI in Retail in India
Mahesh Chander | Thu Dec 1 07:25:20 2011
I absolutely disagree with the points mentioned in the above mentioned article.
1. First of all, Why we need FDI. There are many Indian companies & individuals who are buying companies overseas & expanding their business outside India. It means that there is no dearth of funds in India. We ourselves can establish the infrastructure what foreign companies will do.
2. the second point is that India has unique culture where distributors, whole-sellers & retailers are part of the game. If we allow FDI then Distributors & whole-sellers will be eliminated & they will become jobless. This kind of arrangement is unique in India and it is sustaining the economy in villages & small towns along with metros.
3. The country with huge population need to generate the employment by establishing its own infrastructure not by allowing FDI. Take the case of China, he has not developed at his own.
4. in the existing arrangement middle class people in India can start Kirana store with small investment & it is required in Country Like India with huge population, If FDI is allowed then such small businessman will not be able to compete with foreign stores.
4. There is Proverb " History repeats history" By allowing FDI, we are doing the same mistake what our rulers in the past did by allowing East India Company to establish their business in India.
In nutshell, I feel that there is no need to allow FDI. It may be to please the West & US to save their Chair in India.
fdi in retail
pralhad rathi | Thu Dec 1 06:13:29 2011
Good and bad both is possible. with good governance it could be good. with bad governance it could be a disaster. poor implementation of existing policies and poor efficiency makes a good decision bad, and bad decisions worst. priority is only better leadership and better leadership and not mother and son leadership. India is a great country with no good leader for last 50 years.do not change decisions.change leaders is the only answer
FDI in retail
Sanjay Kumar | Thu Dec 1 04:20:06 2011
There are two face of a coin. It is true that if FDI comes in retail sector we gain benefit but it is also true that it take away employment of many people. It show from a example think our country population is 100 at present and after two year it is double 200. At present 30% that is 30 are live below the provety line and after two year reduce to 29% that is 58. So how can we say that we reduce proverty. Its a game of percent. So we not go to the game of percent we stand on real soil. In 1990 Mr Prime Minister is a Finance Minister and they open our market to foreign inverster. Today some people go to reach but the total number to that person is small and large people condition is reduce. I think FDI reduce our opportunity and we stand against this.
fdi in retail
allan_dsouza1@rediffmail.com | Thu Dec 1 01:32:36 2011
Remember the DDT scam. It was banned abroad. Remember the lead painted toys, they are banned abroad. Remember that unless we can adopt the Eurozone norms we are heading for mass poising. Remember always the litigation costs and the lack of laws up-dated. Please remember union carbide always.
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Re: fdi in retail
Jayachandran | Fri Dec 2 03:43:34 2011
You are correct Sir.
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FDI IN RETAIL
SANDEE K TEKRIWAL | Wed Nov 30 15:11:51 2011
I HAVE COME TO KNOW THAT EVERY YEAR IN USA MORE THAN 10 SUPPLIERS OF WAL-MART GOES BANKRUPT OR FACE FINANCIALS PROBLEMS. IS THIS IS CORRECT INFORMATION. PLEASE LET ME KNOW THE CORRECT POSITION.
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Re: FDI IN RETAIL
Akash | Wed Jan 4 11:08:12 2012
NO
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FDI in retail
Mani | Wed Nov 30 15:05:15 2011
This seems to be a step purely in the direction of aiding ailing foreign economies. How do they (Congress/central govt) say prices will fall? Are they guaranteeing? Definitely many small shops will get affected. And most of those shop owners will suffer because they are illiterate and can't find any other source of income.
And where were these foreign countries when India wanted nuclear power long long back? It is time they (and unfortunately our govt also!) realize that they do what we need or ask them to do instead asking or ordering us to do things for them. The one way traffic time is over!
India on path of slavery of British again
Rajesh Agarwal | Wed Nov 30 13:51:59 2011
Hello Sir
I would like to bring to kind attention of Nation of consequences of opening of FDI in Retail to Retail Giants like Walmart and Tesco.
As evident from other countries were Walmart has its existence it is clear that Walmart adopts the policy of price skimming and eradicating any chance of competition. In long run the consumers will be at a mercy of the retailers with no other option left to meet there daily needs. The benefit of FDI will be a short term for the Nation and in long run every Individual of the country will be again have to live there life as a dog.
The FDI in retail is going to increase the gap between rich and poor further beyond any chance for any reduction in future.
There is no guarantee of any conditions being implied strictly by UPA govt. The same is clear from cash and carry stores like METRO directly selling to end consumers even though being barred from doing so.
There is no concrete reason why foreign Companies would not invest in agriculture in India and thereby taking away the produce out of India as there is a huge unaccounted exports in the sector.
Kindly look into the allegations and respond if your an Indian and not an Investor.
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Re: India on path of slavery of British again
Ram Kumar | Thu Dec 1 07:30:50 2011
I agree with the author. We are repeating the same mistake, which our rulers in the past did by allowing East India company to establish their business.
The single mistake made us to adopt the slavery of British for 200 Years.
In my opinion the Ruling party of India is governed & controlled by a person who was not born & brought of in India, therefore the allegiance of such a person may not be infavour of India but for West/ USA.
We need to Strictly oppose the move of the Government of India & Congress Party.
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FDI THREAT TO Indian Common and small retail owners. China will dump their reject and screp to Indian homes
Manohar - Indian | Wed Nov 30 13:25:12 2011
I think if Government IS INTERESTED IN BOOSTING THE RETAIL IN INDIA THEY should firstly provide the 0% loans to India retail groups / needy people taking 50 % share from them (There is core s of rupees in scams of present government ?? where is the money going ?? Shame on government). Also there is lot of black money out side of India. If govt invests the same in India the poverty will be reduced in few years. The govt should bring the black money to India and invest the same on some Infrastructure Projects. Why they are hiding the black listed people. I have 100 % guarantee the present govt will not come is Satta (Power) for next 20 years. They will have to cry for the coming 20 yrs.
I wish the Government a very happy remaining years in Power. Also wish a happy holiday for coming 20 yrs.
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Re: FDI THREAT TO Indian Common and small retail owners. China will dump their reject and screp to Indian homes
Jayachandran | Fri Dec 2 03:48:59 2011
Sir, the retailers need not 0% loan. If the government provides 5% loan to existing retailers they will be much happy and our money will be within India only and it won't go out of Country and our economy will grow much.
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FDI IN Retail
P.A.Vora | Wed Nov 30 13:05:35 2011
To my knowledge, should outsource more than 50% from the local Indian market instead of just 30%.
They are not coming here to help
RB | Wed Nov 30 11:11:29 2011
FDI retail will only add to the beggars list in this country. India will go the American way with elimination of jobs and more farmer suicides. Be true patriot and shun FDI. They are not coming here to help the aam aadmi. Beware!
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Re: They are not coming here to help
Jayachandran | Fri Dec 2 03:53:03 2011
Remember our late Honourable Prime Minister said " BE INDIAN AND BUY INDIAN". Her grand children's forget it.
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Absolutely true - it is going to benefit common people
Uday Mullan | Wed Nov 30 11:03:55 2011
It is absolutely true that this act is going to benefit the common people. It is only understandable who this slogan shouting people are. They were always against anything and everything. Introduction of computer was resisted and look what has happened. It is a pity that we cannot have a cohesive policy including all parties. One can only wish that politicians think above the petty politics.
Govt want's to wash its hand off
MANOHAR | Wed Nov 30 10:45:58 2011
This is one more method by which the Govt want's to wash its hand off providing proper governance to the citizens of India. It's the Governments duty to provide and create infrastructure to avoid wastage in Food products which is in the region of about 40 % .
Instead the Government buried its head in the ground like the proverbial Ostrich and now expects that the FDI in retail will sort out all problems related to the farmers , the SME's and the traders .
It is nothing but a eyewash and wash its hand off the issue. Also the timing of the same smells of opportunism as the ruling party was not ready for a discussion on Price Rise and issue of Black Money along withe Lokpal Bill.
Mohan Supe | Wed Nov 30 09:31:13 2011
This is not true. Almost every such decisions in past ten years seems to have systematic plan of creating miss management and then bring such solution. We have never tried to penalize those who contribute to failure of otherwise workable system. Almost all sectors you can witness that those who break the law get scot free and those who lead their life following the law usually penalized in the event of failure, how ever small it may be. e.g. It is common site in Mumbai & thane that a 8-10 traffic policemen including RTO inspector stand round the corner to catch defaulters for not wearing helmet/belt in otherwise crowded location BUT they do not move an inch when they see robber fleeing away committing the crime. So on and on and on. Please do not misguide your readers.
FDI in retail is good.
Nirad Patkhedkar | Wed Nov 30 09:23:16 2011
Unorganized retail business is in the hands of baniya and marwari people and they have developed a chain of middlemen and in some cases a cartel. This is unsustainable and should not be justified. Let us see what happens and if these giants also develops cartel then throw them out. This is worth of experiment. Small traders will always oppose this because they want this non-functional chain to stay as it is and earn commission. Also in the age of globalization how can we be selective? I mean, we want our software companies to earn from abroad, we feel proud when any IT engineer may be our distant friend or relative goes to US. Infosys or TCS are also not going there for charity. BPOs have sprawling all over India which causes unemployment in US. So be mature. You can not play according to your own rules. It will benefit producer and end user. Middlemen are bound to complain and really pity on them because rather than improving they want protection. Read the Darwin-Survival of the fittest.
Opportunities are more than the threats
Eswaran Muthuswamy | Wed Nov 30 09:15:00 2011
Of course what the CEO says is correct. Opportunities are more than the threats.But the Govt should effectively formulate the policies to safeguard the local small players.Its true that there is huge price parity between farmer and retail currently. In other words, middle men are benefited mostly and the farmer doesn't get right price. The gap should be narrowed down and farmers should be benefited.
FDI in retail : A suicide in disguise
Srinivass NV | Wed Nov 30 08:46:01 2011
The basic issues like Price rise, unemployment, Poverty, Lack of Infrastructure, Military Vulnerability, etc are a result of Lack of Direction and Corrupt Governance. To bail out the nation from these issues, they need to stop being Corrupt. What we need is Better Productivity & Quality in Agriculture, Industry, Medicine etc. The Bottom-line is that, "Manufacturing Should improve both Quantitatively and Qualitatively"...so that we are able to BUY essentials in affordable Prices. We certainly DO NOT need 'Others' to 'Distribute' what is already produced here. We know, our Ground water is bottled and sold to us @ more than 20 times the Cost Price. Foreign Agencies can do only that. IF AT ALL Distribution needs to be balanced, Government can always interfere in channelizing essential Products so that the Producer is equally benefitted. Also, let us not be fooled about JOB opportunity!.. We actually need JOBS which will enhance Engineering and Technology, Medicine, Agriculture, etc. FDI in Retail cannot provide such Jobs. In fact, it will have a Serious impact on the illiterate Daily-Bread winner. With all these facts,...It is hard to believe...after exhibiting such Shameless corruption in every form, how a Government can be so thoughtless in proposing such a Stupid thing!... Either the Wizards behind such a Decision should be so foolish (which they can't be!...) or the only other possibility is that this is again a Manifestation of Corruption in a more clandestine form!
FDI EFFECTS AND POLICIES TO BE IMPLEMENT ON THEM
MOHD YOUSUF | Wed Nov 30 08:35:30 2011
AS PER THE ABOVE INFORMATION THAT GOVT.HAD PUTTED THE 30%PURCHASE FROM INDIAN MFG. SECT. THAT VERY GOOD OPTION AND MORE THING IN MY MIND IS THAT IF THE GOODS ARE MFG. IN INDIA AND THE THE FDI WANTS TO BRING IN TO INDIA FROM SOME OTHER COUNTRY MUST IMPOSE 20% COSTUM ON IT AND IF NOT MFG. IN INDIA THAN ONLY 5% CUSTOM THIS WILL IMPROVE LEVEL OF LOCAL MARKET AND BALANCE THE INFLATION.
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Re: FDI EFFECTS AND POLICIES TO BE IMPLEMENT ON THEM
Tomson | Fri Dec 2 11:37:04 2011
There are numerous goods, highly useful for people. But most of them are not available here. Only when foreign companies come here, such things will be available. If we are too smart why buy Chinese goods? Why people bring things from outside? Even for a small thing like the mosquito bat,
a quality deodarant spray, everything should come from outside. So it is not that easy to find all types of goods here and what is there to source out towards the 30% quota for local manufacturers. We are earning a lot of money from various outside countries. Let others also get some benefit from us. Let them do business here which will be beneficial to us also. Heavens will not fall if some Companies come here for business.
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Is our priority right?
S K Agrawal | Wed Nov 30 08:21:20 2011
Dear Sir,
1. Is our priority right? We must bring up first our 45% BPL population. This will not happen on its own, since it has not happened in last 64 years. Giving doles will not solve the problem, it will only postpone.
2. They say modern technology will come with FDI.Is it more complex than space and nuclear technology, which we have mastered? Can we not buy it rather than looking for the investment.
3. it is widely believed that most FDI comes to India thru Mauritius, a small economy and a small country. People say the money which comes is our own money deposited abroad and invest back in India thru FDI route. It is therefore facilitating Black money rather than curbing it.
4, Where is the Model and the data to support the benefit expected. We cannot believe politicians .
5. Why not public discourse before presenting it in the Parliament. Democracy means if there is so much opposition, they should withdraw it.
Petty traders, middle-men was looting for long time
Gopal | Wed Nov 30 08:01:26 2011
We Indians have always been lagging far behind in the progress in every field in comparison to modern times. The petty traders and middle-men was looting the producers and consumer for very long time. This action will liberate them from the clutches of organized cartel. But short sighted political jokers will not permit it that easily. Because, some parties owe their existence on the illegal funds provided to them by these bunch of goons. BJP is the main culprit which is a party of traders.Mayawati, Jayalalitha and likes are self serving small minded people, who are not bothered about country or economy. Some jokers in UPA too are too immature that they cannot think beyond the next door kirana shop owner and vote from his family. It is better not to talk about communists or Mamata. Between them there is hardly any difference in irrationality.
So, Let us support at least this belated decision of this government.
FDI in Retail - Myths and Facts
Parag Kulkarni | Wed Nov 30 07:49:54 2011
Is FDI in Retail a need or necessity for India economy ?
It is said that 'removal of the long chain of intermediaries will also benefit customers'. It is myth. The present retail giants in India have never reduced the prices. The fact is that their prices more or less match with the existing whole sale or retail prices prevailing in our country.
Secondly, the profits earned by foreign retail giants will go to foreign countries. Presently, the profits earned by Indian retail organizations is retained and circulated in our economy. Farmers have always been exploited in our country and the scenario is not likely to be different in future.
Thirdly, who will ensure that 30% purchases will be from Small and Medium companies? Are theses SMEs going to produce more when the foreign retail giants will arrive in India? Are these giants going to export the products? If the answer is no then how the Indian SMEs are going to benefit?
Fourthly, allowing 51% investment is a very risky proposal. Who would own the rest 49% ? Domestic retail giants, Indian Business Houses or Corrupt politicians with black money?
If at all government wants to allow FDI, it should be in a phased manner. Initially, it should be restricted to 25%. It could be increased to max 49% based on the performance and experience in future.
FDI in retail in no case and in no way will benefit the common man in our country.
Approval of FDI good for economy ? May be!
Harish | Wed Nov 30 07:28:51 2011
Reasons given in this article, at least are;
1.unclogging our supply chain
2.better value to the farmers
3.low overheads due to competition.....etc.
I believe some of us who have worked overseas and done these tasks for the major chains can do it here also, without invoking the hand of big brother.
When our retailers get strong and the supply chain is reasonably smooth, then we can invite the FDIs to compete in an even playing field. Else like the BPOs they will destroy the market salary structure and make us less competitive in the global market. Just like the Chinese do, that should be considered our market and not just India.
Finally, buying from small local traders, who, one gets to know over a period of time, is far more enjoyable an experience than buying from an impersonal feeling mega store. The personal touch and service one gets cannot be matched.
JOB CREATION IN AGRICULTURE FIELD
JACOB PARAVILA G | Wed Nov 30 07:24:18 2011
We have to go step by step.
1. We should create awareness among the farmer community about the long term benefits of professional farming and marketing and selling of goods.
2. people should come out of the mindset of jobs are available only in urban area and should cultivate in every inch of land by every individual in the country.
3. need an organised professional effort to coordinate buying even small quantity of agricultural goods from farmers and pool it together to bring to distribution channels (unlike in the current 'mandis')and get to the retail and wholesale merchants.
4 in all this we have to make sure the agriculturist get good or at least reasonable price which only will encourage anyone to focus and do farming whatever small or large farmland he has.
5. Last but not the least try to avoid political intervention in organising such efforts which will complicate it only because they are good in front of public addressing system and microphone of channels.
In the present day world no country can avoid FDI (but we have to handle it professionally).
India was already invaded by the east India company
prasad | Wed Nov 30 07:03:48 2011
India was already invaded by the east India company and it was only through the trade they have entered the country. Our riches were stolen by them after they came to power. Now once again they want to enter the market in the name of trade. In our country many can change the law, people, and every thing. Till date we are not able to disclose the funds deposited in Swiss banks. How do you expect our politicians to be correct.
It is a good step to open Indian market
Ragbhir Singh | Wed Nov 30 06:27:41 2011
In my opinion, it is a good step to open Indian market to international competition. The politicians opposing FDI in India are doing just to take benefit of the Hype created behind FDI so as to make fool of people to earn some votes for their parties. I am very sure that except few, who are making easy money by playing as mediators or commission agents, every body will be benefitted in long run by way of quality products at cheaper rates, better employment, better opportunities for SMEs.In case we remain isolated from the international competition it will be like living on an Island without any contact with the outer world. This may give us satisfaction of being a Nationalist but all doors to Growth will be sealed. We need to COMPETE to GROW.
I feel India needs free foreign money
vivek | Wed Nov 30 06:17:03 2011
I feel India needs free foreign money. Labor is a big problem. Improve our labour law, make condition same as foreign countries & then bring FDI in our country. Bring power, taxes at par with other country. Make single window license for all businesses.
No guarantee that the farmers will be benefited
Bharathakumar.K.M | Wed Nov 30 06:14:03 2011
There is no guarantee that the farmers will be benefited.On the other hand the prices of goods will be fixed by the big players.Ultimately the common man will have no voice but obey the masters!The editorial have not addressed the common mans fear and is one sided.
FDI in Retail
Raman | Wed Nov 30 05:46:49 2011
The points mentioned are not good to justify FDI in retail. We have supply side problems then lets fix them, we have job issues, lets fix it, we have 10% growth in retail then excellent let the local players grab the share, no way the market is going to crash due to this. Jobs will any ways be created. We are exporting our textiles, handicrafts anyways and can still grow further without FDI. So lets not go for FDI and ruin our country. Lets be proud as a Nation.
Will cause of lot of problems for small traders
H.L.Maheshwari | Wed Nov 30 05:42:33 2011
Not agreeing that cost will come down and inflation will be in control.
High use of tech. and cost of the funds will never make in thing cheaper in India which is being seen since last 20 years.
Further it will cause of lot of problems for small traders as cost of the employment will go up which may wipe out the advantage to low cost product.
Difficult to sustain small traders and shopkeepers due small capital low purchase power as compared to big brands.
Who will monitor 30% purchases
Hindustanilion | Wed Nov 30 05:37:40 2011
This is not workable in our country as our population is very high. It can work in a country where population is very low and are short of man power !!!! Secondly as our PM said it will benefit to farmers but which way ? Why our Govt is not implementing its own source and manpower to buy and supply additional crop ? Why restrictions to Indian Trade Houses or even local businessmen ? Will these laws applicable to limit stock for FDI companies? Who will monitor 30% purchases from SME's ? Corruption will increase !!!
Foreign retail chains are coming here to make money
VIJAYAN NAIR | Wed Nov 30 05:09:41 2011
First and foremost, please understand, the foreign retail chains are coming here to make money and not to serve the Indian farmers or the SME sector or the public in general. Their only aim is to make money and it will also adversely affect more than 1.5 crore small time retailers.
It's a good move
J. Khoo | Wed Nov 30 04:45:27 2011
It's a good move and for too long, the retail has been sheltered, same shops duplicated in all malls across the country. Besides providing opportunities for SME it will also upgrade the skills and production expectations of SMEs. India can be the next big manufacturing hub. All it needs is to improve the infrastructures and policies to allow more FDI.
Initially they will keep price low
pradeep kumar | Wed Nov 30 04:45:09 2011
it is a myth that due to direct purchase , consumers will be benefited. Initially they will keep price low and after few months they will start increasing price and no one will be there to compete them. So the farmer and manufacturers will get low margin and consumers will have to pay higher price.
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Re: Initially they will keep price low
Tomson | Fri Dec 2 06:08:48 2011
This is the most absurd argument. Do you think all small shops will wind up the next day when a big shop is setup. There are textile and gold shops even now, which claim to be the biggest in the world, all around in many places in the south. How many petty shops get closed because of these giants? Do you think the giant shops coming up here can do business
without any price competition. Hundreds of Govt supermarkets are there in every state. So where they will go? Then how can you say, first the prices will be less then shot up. If big shops come up you can do shopping more comfortably, see the prices, select the goods after seeing it properly and you will get bills also. Govt. will not loose crores by way of taxes. You need not buy goods eaten and excreted by rats, cockroaches etc which is what you get now. Let new technology come, let us attract visitors also from outside just like Dubai do through their Big shopping centers.
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SMEs facing huge labor problem
Nikhil Parekh | Wed Nov 30 04:40:51 2011
I think, the opening up will be of benefit for us to generate not only new employment but also better paid and better quality employment instead of killing jobs.
I am not so sure, right now almost all SMEs are facing huge labor problem. young generation wants to work in controlled atmosphere rather than in hard core working area. We need to improve education and attitude of people.
We need to more concentrate on education and proper farming - we have been living with strong economy on agro base. If u sell your agri land than what will you grow and eat. What we need is proper infrastructure like road, power,water management and not mall culture. As it is we are short of power in many state. If we concentrate on proper agro sector, our economy will survey for 100's of year or else it will be down like US and UK. People have money but no food.
Talking of few million and billion sounds good but reality our country's strength is agro as we are large populated country.
Don't skip this opportunity
Peter Rajamanickam | Wed Nov 30 04:38:46 2011
You are perfectly right. Opportunities are plenty. Threats, if any, can be managed. Let us not skip this scope.
Support the existing system
Pankaj | Wed Nov 30 04:34:45 2011
Why we want to correct whole system or rather say disturb the current system and get the new one which may or may not benefit instead we should support the existing system and improve them.
Benefits ?
Sheetal | Wed Nov 30 04:23:06 2011
80 lacs new job...(estimated) the actual number will be 10 lacs -
And to gain those slaves you are giving away 20 crore small traders OWNERSHIP away.
I wish Shivaji was alive today to tackle this terror.
We were also opposing computer
M. K. Srivastava | Wed Nov 30 04:21:09 2011
Fully agree with editorial. There is a history that we were opposing computer due to fear of rising unemployment index, but the result is not only reverse but we are gaining by that decision. We were having running automobiles till Suzuki (By coloration with Maruti), Hyandai, Honda (By coloration with Hero) have not only given new technology as well as better service to the consumers.
Not only one sector but all sectors of the nation had been benefited.
Give the Indian talents an opportunity to showcast their talent
Sandeep | Wed Nov 30 04:19:37 2011
Well in my view instead of going on for a FDI sort of investment, why can't the HRD Ministry headed my Mr. Kapil Sibal give chance to the Indian Entrepreneurs passing out & passed out from the premier institutions like IIM's or IIT's to play a part in the transformation of the existing Supply & Demand structure, with some govt. funding. They would be very much happy to be a part of this change factor for the economy. After all these global brands will be using the skill of this very talented lot. So, the UPA should stop their money minting policy and rather focus for the nation & its citizens happiness, prosperity & growth.
FDI- Raise the 30 % to 80 %
A S Murali | Wed Nov 30 04:14:13 2011
We can subscribe to the Govt stand if it readies itself to stipulate 80% sourcing from Indian small and micro enterprises.
Eight months back, a British envoy had asked for the opening up of Indian Retail Market and the Govt has succumbed.
They are here to make profits and not on a goodwill mission. If the 30 % can be raised to 75-80 % levels then we can consider.
Initially it should be Indian 70% and 30% outside
umesh dani | Wed Nov 30 04:07:06 2011
Will you please explain the benefits to common purchasers. You have only given benefits of employment but not of prices of the commodity which will impact the common buyer. You said 30% will be purchased from SMEs in India but what about remaining 70% which will be brought from other countries so that our revenue will go to them. Then how India and its economy will be benefited in this inflation? You have also stated of farmers. How they will be benefited? Initially it should be Indian 70% and 30% outside. Hope you will reply my queries.
FDI in retail Declaration of 30% purchases from SME
Vijay Goyal 9301704200 | Wed Nov 30 03:49:02 2011
I suggest Govt should take self declaration that they will Purchase 30% Goods from the manufacturer from Domestic (Indian) SME sector specially from which state in Indian they are operating . Please Note that they have to purchase the only goods manufactured by SME not Supplied by SME this should be taken care. This declaration is also the part of their Balance Sheet Part 3CD declaration.
Unemployment will raise its head
Pratik Shah | Wed Nov 30 03:33:27 2011
The number of jobs surged due to FDI in Retail will be less than the people employed just because of the competition. Unemployment will raise its head. Difference between Rich and Poor will increase.
Middleman is King of the market
CA Ramesh Khandelwal | Wed Nov 30 02:45:50 2011
Indian agriculturist is most affected since they are not educated. They are not guided with what to grow and what should be the ratio. Very frequently we see throughout India that potato / onion are either in shortage or in excess and the producers are not able to get the cost for producing the same, mainly because of imbalance between the supply and demand ratio. Another main constraint is there is a huge gap between the farmers price and price at which the consumer is buying. In India Middleman is King of the market, which needs to relooked if want to curtail inflation and generate better employment.
SME'S
gopal | Wed Nov 30 02:00:29 2011
"Needless to say, this is a piece of good news for the Indian SME sector. In fact, I think that the benefits of approving FDI in retail would outweigh any potential threats to our whole economy."
This assumption is questionable since it means SMEs world over including China. So the 30 % cannot be assumed only for Indian SMEs
NOT easy for Indians to compete
Prem Madan | Tue Nov 29 18:14:05 2011
Intentions may be good;it is NOT easy for Indians to compete unless the Indian get level playing field :
Generate production volumes at international levels.
The financial institutions take Indians on face value,trust and provide finances leveraging risks,promptly decently and support difficult situations.
The society, the investors, the govt.puts in resources for lifting production.
High production should be a day to day norm for all of us,The business people,The management,The employes,The govt.,The workers,The tax authorities,
The public at large.
The quality is the need for each one of us,but production and quality need to go hand in hand and not one for the other.
I do not know how many of us are aware, all big companies govt., and private, a lot more, define approved vendors even for generic materials in our country;
none of these vendors have sufficient capacity or maintain stock yet these companies insist on vendors,thereby delay production, make each other spend extra on communication ,waste lot of time,and indirectly make their own project expansive.
We all need to be honest,must put objectivity first and then personal needs.
Corruption needs to be addressed better.
we need to improve our business ethics,pay vendors on time,do what committed,organize better, value business commitment over social diversions.
Respect and pay appropriate to manpower.Respect basic needs of all.
Reduce tax, finance cost,give equal field for all to and respect efficiency.
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We can only improve or grow when we stretch beyond our limits
Ragbhir Singh | Wed Nov 30 06:40:56 2011
Dear Prem, I think it is time now to give away with the Psyche of playing in safe field. We can only improve or grow when we stretch beyond our limits. You are dreaming of "Sapno Ka Bharat or Ram Raj" as thought of by our great freedom fighter or leaders like Mahatama Gandhi Ji but today we are moving in a spiral created by our politicians, where we can only think of survival and nothing else.
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FDI in retail: Benefits overweigh threats
shailendra singh jadaun | Tue Nov 29 16:21:17 2011
Are you sure???
We have already seen the fate of globalisation and its impacts on developed and developing economies worldwide. What were the gains of opening our economy-- have we gained in terms of exports- not at all.. Nothing like this has benefitted the Indian economy.
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