FDI in Multi Brand Retail Sector - Discussion

[nrj]

I guess this entire move was about economy and and its betterment . Presuming I am correct then all I am saying that there were many more important moved that would have helped economy . I am sure you must have heard voices of various businessmen unhappy with government policies and delays in implementation . And now all of sudden this move that will help western companies more than it will help Indian businessmen .

Fin Min is still gathering its pity courage to take other measures. FDI was still long pending. This should have been cleared in BJP rule but then commies were crying.

@OT

UPA threw away corporate class support in last 2 yrs with their populist schemes & selling away biz class heads when it comes to scandals. They will meet their karma, whatever it is.

 

[SpArK]

yes this will be foreign goods as it will have a foreign brand name similar to nokia phones manufactured in india.

Okay. But does it really matter if its produced here?

Even US has maximum of Korean and Japanese brands in that sector.

 

[Param]

The cutting down of the middle men is the best part.
Usually when a local farmer grows something it is sold to his local market at a price and from the local market it is collected by agents from farther places sold to wholesalers there and then to retailers and when it finally reaches the consumer the price is up and all people in the ladder gets money and the risk is fully for farmer. Now with guaranteed money and orders from the retailer directly gets him better price and the consumer gets it at cheaper price.

Now after the agents, wholesalers and middle men are done away with all the profit can be made by Retailer alone. In course of time the local farmer will be at the mercy of the retailer.

 

[LETHALFORCE]

Okay. But does it really matter if its produced here?

Even US has maximum of Korean and Japanese brands in that sector.

it dosen't matter that it is produced in India, but who will profit from it?? Indian govt maybe generating tax revenues and FDI from this but they will wipe out all the cottage industries.

 

[SpArK]

Now after the agents, wholesalers and middle men are done away with all the profit can be made by Retailer alone. In course of time the local farmer will be at the mercy of the retailer.

Nope when there are plenty to choose from. Well profit will be there for retailers but the price wars will keep it low and consumer will be benefitted.

 

[LETHALFORCE]

Nope when there are plenty to choose from. Well profit will be there for retailers but the price wars will keep it low and consumer will be benefitted.

Multi national corporations will win price wars they can undercut domestic competition until they are wiped out then they take the whole market. And they can be patient for years since they have worldwide revenues.

 

[Ray]

China will be happy.

Cheap stuff into Indian market!

Milk and chocolates made of melamine!

Given Indian corruption and lack of health standards, people to be competitive will cut corners!

 

[SpArK]

it dosen't matter that it is produced in India, but who will profit from it?? Indian govt maybe generating tax revenues and FDI from this but they will wipe out all the cottage industries.

I dont think our cottage industries are that capable on producing something on that level in that sector.

 

[nrj]

Do I really need to post it again?

4. The government will have the first right to procurement of agriculture products.

How farmers are dependent only on retailers??

 

[SpArK]

China will be happy.

Cheap stuff into Indian market!

Milk and chocolates made of melamine!

We will have Chinese milk, Chinese eggs, potatoes, daily breads.. yukkk.. im gonna prefer Indian over these cheap ones.

 

[SHASH2K2]

Fin Min is still gathering its pity courage to take other measures. FDI was still long pending. This should have been cleared in BJP rule but then commies were crying.

@OT

UPA threw away corporate class support in last 2 yrs with their populist schemes & selling away biz class heads when it comes to scandals. They will meet their karma, whatever it is.

now you are coming to the topic I wanted to discuss. what India needs is to get rid of populist policies not this FDI in retail . There are pros and cons of this move and it will take years to reach conclusion. this move may help consumers but it will definitely destroy small business . I guess being from big city you maynot feel the impact of these mallas and supermarkets but in many middle sized city it has destroyed vegetable markets and grocery stores . . Even in city like bangalore its almost impossible to find a good vegetable market as these supermarkets have a monopoly . India is not USA and Europe . here one need to take peoples welfare as well into the considerations. If money is main reason behind this move then why not use some other means to get it instead of opening retail sector .

 

[LETHALFORCE]

I dont think our cottage industries are that capable on producing something on that level in that sector.

but they still survived ,and this will guarantee that domestic industries do not develop to a bigger scale.

 

[SHASH2K2]

Now after the agents, wholesalers and middle men are done away with all the profit can be made by Retailer alone. In course of time the local farmer will be at the mercy of the retailer.

they wil first destroy middlemen and then they will suck farmers blood as farmers would be left with no option but to sell to them . As of now farmers can sell its product to any middleman it want to .

 

[LETHALFORCE]

now you are coming to the topic I wanted to discuss. what India needs is to get rid of populist policies not this FDI in retail . There are pros and cons of this move and it will take years to reach conclusion. this move may help consumers but it will definitely destroy small business . I guess being from big city you maynot feel the impact of these mallas and supermarkets but in many middle sized city it has destroyed vegetable markets and grocery stores . . Even in city like bangalore its almost impossible to find a good vegetable market as these supermarkets have a monopoly . India is not USA and Europe . here one need to take peoples welfare as well into the considerations. If money is main reason behind this move then why not use some other means to get it instead of opening retail sector .

absolutely right, why give away your bread and butter??

 

[SpArK]

but they still survived ,and this will guarantee that domestic industries do not develop to a bigger scale.

I was talking about the electronics industry.

Nope , we are not on par with them. no no no ....not yet.

But they can surely compete like the Videocon or the Onida brands.

 

[Poseidon]

Very Good step by Government though quite late.China allowed FDI in retail in 1992.
Some economists estimate that FDI retail could boost growth by 1%.

 

[SHASH2K2]

absolutely right, why give away your bread and butter??

Its nothing but a move to please corporate houses to get fundings for next election. Now use of money and distributing money is only hope congress has to some back in power. so this deal of ek hath do dusre hath lo has started with corporates.

 

[LETHALFORCE]

I was talking about the electronics industry.

Nope , we are not on par with them. no no no ....not yet.

But they can surely compete like the Videocon or the Onida brands.

let me put it another way you have a market that will go from benefitting Millions of people no matter what small scale they are to a market that will only benefit multi national corporations if this to you is a good please elaborate??

 

[Poseidon]

I am expecting that Cabinet will soon allow FDI in aviation.Today is really a good day.

 

[SHASH2K2]

If any industry needs FDI then its manufacturing and electronics industry along with infrastructure not the retail sector.