FDI in Multi Brand Retail Sector - Discussion

[LETHALFORCE]

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.

This is a sell out even China did not open their retail sector so quickly.

 

[LETHALFORCE]

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

Chinese were smart in this regard with the Govt providing funding to their industries before slowly opening them.

 

[SpArK]

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??

The business is completely dependent on demand.

Would you buy an Iphone or a MAXX mobile if given a choice.

Your answer for the above question is the answer for the above quote.

 

[nrj]

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 wouldn't comment anything else on omniscient statements. Same was said during 1st round of reforms. Was it proved that harmful?

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 .

Maybe we need to protect the economy once again then. Lets reverse all those '90s reforms. What fuss was that all about? Liberalization helped Indian economy to grow big enough challenging world powers?

How people's welfare is neglected here but ensured in earlier stage? If you mean wholesellers then its business competition for them. They are part of a system not end beneficiary.

And please tell us other means?

 

[LETHALFORCE]

The business is completely dependent on demand.

Would you buy an Iphone or a MAXX mobile if given a choice.

Your answer for the above question is the answer for the above quote.

The demand is a fixed demand people will always need to eat this is not even an issue in retail. Multi national have more power and money, domestic companies will be wiped out within a few years or will have merged with foreign companies.

 

[SHASH2K2]

The business is completely dependent on demand.

Would you buy an Iphone or a MAXX mobile if given a choice.

Your answer for the above question is the answer for the above quote.

and what if my aukat is to but max and only option thats available for me is Iphone ?

 

[natarajan]

from this move how much percentage the swiss accounts of congress ppl going to grow lol

 

[nrj]

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

FDI in electronics & manufacturing will be nightmare. It will actually flood market with cheap chinese products. Infrastructure already has significant FDI permissions.

FDI in finished electronics goods will create monopoly, local sourcing will not.

 

[LETHALFORCE]

I wouldn't comment anything else on omniscient statements. Same was said during 1st round of reforms. Was it proved that harmful?



Maybe we need to protect the economy once again then. Lets reverse all those '90s reforms. What fuss was that all about? Liberalization helped Indian economy to grow big enough challenging world powers?

How people's welfare is neglected here bu ensured in earlier stage? If you mean wholesellers then its business competition for them. They are part of a system not end beneficiary.

nrj I agree that India can liberalize but the retail sector did not have to be liberalized so early here are some sectors that could have been first:

Electronics,Semiconductors,Aerospace,Material sciences, pharma etc... AND THE LIST GOES ON

 

[SHASH2K2]

FDI in electronics & manufacturing will be nightmare. It will actually flood market with cheap chinese products. Infrastructure already has significant FDI permissions.

FDI in finished electronics goods will create monopoly, local sourcing will not.

I am talking about manufacturing here in India. not exporting raw materials and bringing back finished goods .

 

[SpArK]

The demand is a fixed demand people will always need to eat this is not even an issue in retail. Multi national have more power and money, domestic companies will be wiped out within a few years or will have merged with foreign companies.

We have quite a few companies, Indian that has been swallowing some good companies abroad.If domestic companies are weak and are promising , i am sure the Indian ones are capable enough to merge them as we have seen all these years.

Anyway the topic here i presume is the retailers like Walmart, Tesco and Carrefour kinda ones starting here, not the manufacturing sector.

 

[SHASH2K2]

In country like USA infrastructure is so good that they can source good like vegetables and fruits from 400-500 kms distance and they are still fresh. Do we have that kind of infrastructure here in India ? Government should have allowed infrastucture to build before opening something as sensitive as retail sector.

 

[LETHALFORCE]

We have quite a few companies, Indian that has been swallowing some good companies abroad.If domestic companies are weak and are promising , i am sure the Indian ones are capable enough to merge them as we have seen all these years.

Anyway the topic here i presume is the retailers like Walmart, Tesco and Carrefour kinda ones starting here, not the manufacturing sector.

walmart plan for India will be to send raw materials to China and sell finished product to India, along with this Chinese retailers will have their own strategy. Wal mart will say India does not have good infrastructure so this is the way it has to be.

 

[nrj]

I am talking about manufacturing here in India. not exporting raw materials and bringing back finished goods .

nrj I agree that India can liberalize but the retail sector did not have to be liberalized so early here are some sectors that could have been first:

Electronics,Semiconductors,Aerospace,Material sciences, pharma etc... AND THE LIST GOES ON

So if I'm not wrong, you think other sectors had priority when it comes to FDI. Maybe, maybe not. I do not have understanding of all those sectors to say on that.

Semiconductor is old fairytale here. Everytime there is loudtalk but nothing happens on ground.

Also about manufacturing, I think main roadblocks were land acquisition laws etc. Its been stumbling block. They woke up recently to clear it. Lets see how far it succeeds. And new manufacturing policy was recently approved.

Infrastructure has FDI permission but unless people allow to source land & setup units, foreign investment in other sectors will be useless.

 

[SHASH2K2]

So if I'm not wrong, you think other sectors had priority when it comes to FDI. Maybe, maybe not. I do not have understanding of all those sectors to say on that.

Semiconductor is old fairytale here. Everytime there is loudtalk but nothing happens on ground.

Also about manufacturing, I think main roadblocks were land acquisition laws etc. Its been stumbling block. They woke up recently to clear it. Lets see how far it succeeds.

Infrastructure has FDI permission but unless people allow to source land & setup units, foreign investment in other sectors will be useless.

you also know that antics of Rahul baba in UP made land acquisition even tougher in India. Now any tom dick and harry can come ans screw happiness of any builder or industrialist.

 

[LETHALFORCE]

So if I'm not wrong, you think other sectors had priority when it comes to FDI. Maybe, maybe not. I do not have understanding of all those sectors to say on that.

Semiconductor is old fairytale here. Everytime there is loudtalk but nothing happens on ground.

Also about manufacturing, I think main roadblocks were land acquisition laws etc. Its been stumbling block. They woke up recently to clear it. Lets see how far it succeeds.

Infrastructure has FDI permission but unless people allow to source land & setup units, foreign investment in other sectors will be useless.

I am not against FDI,liberalization or trade but Indian govt could have gave it some thought and not do it in a sector where the farmer, domestic retailers and Indian public will eventually be at the mercy of the foreign multi national.

 

[SpArK]

walmart plan for India will be to send raw materials to China and sell finished product to India, along with this Chinese retailers will have their own strategy. Wal mart will say India does not have good infrastructure so this is the way it has to be.

If they can tie-up with Indian local industry that would be a major boost.

Lets hope government setup some mechanism so that Chines dont prey like hawks seeing cheap plastic sell-able opportunity markets.


oiiii I just have 4 digit total posts now in DFI.:thumb:

 

[LETHALFORCE]

If they can tie-up with Indian local industry that would be a major boost.

Lets hope government setup some mechanism so that Chines dont prey like hawks seeing cheap plastic sell-able opportunity markets.


oiiii I just have 4 digit total posts now in DFI.:thumb:

There will be no tie-ups it will like the Iron ore India sent to China and then bought the finished product from China.

 

[SHASH2K2]

If they can tie-up with Indian local industry that would be a major boost.

Lets hope government setup some mechanism so that Chines dont prey like hawks seeing cheap plastic sell-able opportunity markets.


oiiii I just have 4 digit total posts now in DFI.:thumb:

I wish that 4 digit came much earlier.
regarding mechanism to deal with china all I would say is that when it cannot do anything about trade imbalance which is turning in their favor with each passing year you shouldnt have any hope with government. its a sellout .

 

[SpArK]

There will be no tie-ups it will like the Iron ore India sent to China and then bought the finished product from China.

Anyway most stuff are perishable goods and will be procured locally.

Only the cheap plastics will be arriving from outside as seen from stores like ASDA and TESCO in UK.