Discussion in 'Economy & Infrastructure' started by Nicky G, Jan 14, 2015.
Prime Minister Narendra Modi to back multi-brand FDI: Jagdish Bhagwati
Should he, shouldn't he?
This is a very interesting question. Which has been debated endlessly on DFI during the 2011-12 timeframe.
So, how many of you are in favour of FDI in retail as of today? @Singh, @Yusuf, @Daredevil, @LurkerBaba, @Ray?
Having read about Walmart's poor record in job generation, low salary, and not benefiting the producer, I am not to enthused about multibrand FDI in retail.
Fully support FDI, we need the money screw baniya vote
FDI in single brand retail is already there. Issue was with multi-brand retail.
Ideologically speaking, I don't mind FDI in multi-brand retail. My only issue is that there should be level playing field between domestic & foreign players. For example, foreign players will get funding or loans at dirt cheap interest rates (like 2-3% per annum) but our domestic companies have to pay interest rates through nose (10-12% per annum). Who will win?. Foreign players will wind hands down by simply flooding hot money available in their countries.
At present the banks in US/Europe get their money from central banks at 0% interest while our banks get it for 8% interest rate. Unless this anomaly is corrected, I would hold FDI in multi-brand retail.
For a whole host of issues read my and ybs reply to bangalorean on ecom thread.
What stops Indian firms to get loans from foreign banks? They actually do that right now.
The exchange rate risk would be there for any party borrowing in dollars and investing in rupees.
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