FDI in Multi Brand Retail Sector - Discussion

[Apollyon]

Re: Government approves FDI in multi-brand retail

nrj is not posting from a Galaxy far far away, looks like he's back on Earth

 

[Virendra]

Threads merged :-
--FDI in Multi Brand Retail Sector - Discussion
--Government approves FDI in multi-brand retail

 

[parijataka]

Modernise retail but don't hand it over, British MP Keith Vaz advises Indian MPs

LONDON: Indian-origin Labour MP Keith Vaz has advised Indian legislators to be careful while handling the issue of FDI in retail, cautioning that a major dominance by super markets may not be in the interest of common man.

Vaz, chairman of the Britain's home affairs committee, said though he was not in a position to advise Indian MPs but he would still say, "Please be careful. Modernise the retail but don't hand it over".

"If India allows big super markets to come there, they will not hesitate to have same dominance as in the USA. I don't think it is good for common man," he feels.

Vaz was speaking at a function organised at the Crown Plaza hotel here by the Indian Journalists Association on Wednesday night to celebrate his 25th anniversary in British Parliament.

 

[Defcon 1]

Re: Government approves FDI in multi-brand retail

There are always the loop holes left in the agreements to be exploited at will.

create another firm/sister company with the Wholesale business supplying products to retailers in e-business, This sister company , keeping her aloof of direct e-commerce ,can be used for forging FDI with Amazon or any company of the world!

sneaking beneath the rules is always possible!

Actually this is exactly what Amazon is planning at the moment. I happen to have a little inside info. But still that sister company will be restricted only to backend services and Amazon or like will not be able to hold any assets of the front end online retailers. This will make a difference as Amazon will not be able to establish its own brand in the country and will be like a disposable asset, which can be thrown away by the front end retailers at their will should they choose to do so.

 

[sob]

Re: Government approves FDI in multi-brand retail

Actually this is exactly what Amazon is planning at the moment. I happen to have a little inside info. But still that sister company will be restricted only to backend services and Amazon or like will not be able to hold any assets of the front end online retailers. This will make a difference as Amazon will not be able to establish its own brand in the country and will be like a disposable asset, which can be thrown away by the front end retailers at their will should they choose to do so.

They are operating through Junglee.com: Shop Online and Compare Prices for Books, Mobiles, Clothing and More, which is owned by Amazon

 

[natarajan]

There is lot of speculation that black money stashed by 2g,coal,thorium robbery,adarsh,cwg are idle in foreign banks and the congress is planning to bring it back in the name of FDI ,money will be routed through fdi back to india .sonia will be
the primary beneficiary

 

[arya]

what a great condition for Kongres making black money into white .

well cheap material will be available for Indian and a golden chance for china . .

 

[Defcon 1]

Re: Government approves FDI in multi-brand retail

They are operating through Junglee.com: Shop Online and Compare Prices for Books, Mobiles, Clothing and More, which is owned by Amazon

Junglee is just a prototype for Amazon in India. Something which will enable them to get their hands on statistics for planning their strategy. Amazon wants to enter India and hopes to take care of logistics business behind retail.

 

[KS]

This one line from the article sums up the entire manufactured euphoria over the 'Big Bang Reforms' :

Anyone who's never tasted butter will be glad to accept margarine as the real thing. This is the case with reforms and the UPA government. Having never seen real reforms for more than eight years, everyone has forgotten what real reforms are all about – changing the game, not the player uniforms.

If these are economic reforms, I'm Amitabh Bachchan | Firstpost

 

[Ray]

FDI in multi-brand retail: Policy details

New Delhi, September 15, 2012: After several rounds of debates and discussions, the Indian government has announced a slew of economic reforms across sectors that will have far reaching impact over a long run.

The government has cleared the most awaited reforms allowing up to 51 per cent in Foreign Direct Investment (FDI) in multi-brand retail, paving way for the international multi-brand retailers interested to set up shop in India.

Indian retailers have welcomed the move saying that the policy is expected to give a push to the sectoral growth and the overall growth of the economy.

Here is the full text of the government notification that allowed 51 per cent FDI in multi brand retail:

The Cabinet has approved the proposal of the Department of Industrial Policy & Promotion for permitting FDI in multi-brand retail trading, subject to specified conditions.

The proposal had earlier been approved by the Cabinet in its meeting on 24.11.2011. However, implementation of the proposal had been deferred, for evolving a broader consensus on the subject.

In pursuance of the aforestated decision of the Cabinet on 7.12.2011, discussions have been held with State Governments, representatives of consumer associations/organizations, micro & small industry associations, farmers' associations and representatives of food processing industry and industry associations. The Chief Ministers of Delhi, Assam, Maharashtra, Andhra Pradesh, Rajasthan, Uttarakhand, Haryana and Governments of the State of Manipur and the Union Territory of Daman & Diu and Dadra and Nagar Haveli, have expressed support for the policy in writing. The Chief Minister of Jammu & Kashmir, through his press statements, has publicly endorsed the policy and asked for its implementation. The State Governments of Bihar, Karnataka, Kerala, Madhya Pradesh, Tripura and Odisha have expressed reservations.

During the consultations with the stakeholders, views for and against FDI in multi-brand retail trading were expressed. On balance, however, the discussions generally indicated support for the policy, subject to the introduction of adequate safeguards.

Accordingly, the following proposals have been approved:

Retail sales outlets may be set up in those States which have agreed or agree in future to allow FDI in MBRT under this policy. The establishment of the retail sales outlets will be in compliance of applicable State laws/ regulations, such as the Shops and Establishments Act etc.

Retail sales outlets may be set up only in cities with a population of more than 10 lakh as per 2011 Census and may also cover an area of 10 kms around the municipal/urban agglomeration limits of such cities; retail locations will be restricted to conforming areas as per the Master/Zonal Plans of the concerned cities and provision will be made for requisite facilities such as transport connectivity and parking; In States/ Union Territories not having cities with population of more than 10 lakh as per 2011 Census, retail sales outlets may be set up in the cities of their choice, preferably the largest city and may also cover an area of 10 kms around the municipal/urban agglomeration limits of such cities. The locations of such outlets will be restricted to conforming areas, as per the Master/Zonal Plans of the concerned cities and provision will be made for requisite facilities such as transport connectivity and parking.

At least 50% of total FDI brought in shall be invested in 'backend infrastructure' within three years of the induction of FDI, where 'back-end infrastructure' will include capital expenditure on all activities, excluding that on front-end units; for instance, back-end infrastructure will include investment made towards processing, manufacturing, distribution, design improvement, quality control, packaging, logistics, storage, ware-house, agriculture market produce infrastructure etc. Expenditure on land cost and rentals, if any, will not be counted for purposes of backend infrastructure.
A high-level group under the Minister of Consumer Affairs may be constituted to examine various issues concerning internal trade and make recommendations for internal trade reforms.

Other conditions/safeguards, approved by the Cabinet on 24.11.2012, would remain unchanged. The suspension of Government's decision taken in the Cabinet meeting on 24.11.2011 to permit FDI up to 51% in MBRT, therefore, stands removed.

The respective State Governments administer the Shops & Establishment Act within their territorial jurisdiction. "Trade & Commerce within the State" is a subject allocated to the State Governments, under the Constitution of India. State Governments are also responsible for aspects ancillary to MBRT, such as zoning regulations, warehousing requirements, access, traffic, parking and other logistics. As such, the policy provides that it would be the prerogative of the State Governments to decide whether and where a multi-brand retailer, with FDI, is permitted to establish its sales outlets within the State. Therefore, implementation of the policy is not a mandatory requirement for all States.

Retail sales outlets may be set up only in cities with a population of more than 10 lakh as per 2011 Census (including an area of 10 kms around the municipal/urban agglomeration limits of such cities). On the other hand, States/ Union Terrritories, which do not have any city with a population exceeding 10 lakhs, but are desirous of implementing the policy, would have the flexibility to do so.

Thus, the revised condition gives primacy to the decision of the States in this regard, recognizing that the FDI policy constitutes, at best, an enabling framework for the purpose.

Adequate safeguards have been built into the policy, some of which have been further strengthened.

A three year timeframe has been fixed for setting up the back-end infrastructure, which includes capital expenditure on all activities, excluding that on front-end units; for instance, back-end infrastructure will include investment made towards processing, manufacturing, distribution, design improvement, quality control, packaging, logistics, storage, ware-house, agriculture market produce infrastructure etc. Expenditure on land cost and rentals, if any, will not be counted for purposes of backend infrastructure. This condition will bind the foreign investors to invest in critical back-end infrastructure, which is a felt need across the country. It would also make the foreign investors accountable for proper implementation of the condition.

The decision would benefit stakeholders across the entire span of the supply chain. Farmers stand to benefit from the significant reduction in post-harvest losses, expected to result from the strengthening of the backend infrastructure and enable the farmers to obtain a remunerative price for their produce. Small manufacturers will benefit from the conditionality requiring at least 30% procurement from Indian small industries, as this would enable them to get integrated with global retail chains. This, in turn, will enhance their capacity to export products from India. As far as small retailers are concerned, it is evident that organized retail already co-exists with small traders and the unorganized retail sector. Studies indicate that there has been a strong competitive response from the traditional retailers to these organized retailers, through improved business practices and technological upgradation. Global experience also indicates that organized and unorganized retail co-exist and grow. The young people joining the workforce will benefit from the creation of employment opportunities. Consumers stand to gain the most, firstly, from the lowering of prices that would result from supply chain efficiencies and secondly, through improvement in product quality, which would come about as a combined result of technological upgradation; efficient grading, sorting and packaging; testing and quality control and product standardization.

Implementation of the policy will facilitate greater FDI inflows, additional and quality employment, global best practices and benefit consumers and farmers in the long run, in terms of quality, price, greater supply chain efficiencies in the agricultural sector and development of critical backend infrastructure.

The high-level group, to be constituted under the Minister of Consumer Affairs, is expected to look into various aspects relating to internal trade, to make recommendations on internal trade reforms to the Government, whenever required. This is in response to a demand articulated by traders' associations during the course of consultations. Reforms in internal trade will ensure distributional efficiencies and also that the benefits from trade are available to all sections of society.

FDI in multi-brand retail: Policy details

 

[Raj30]

Re: Opposition to block FDI in multi-brand retail

The largest ever march against Walmart in San Diego history tomorrow - San Diego City Buzz | Examiner.com

 

[Virendra]

Threads merged :
:-| Opposition to block FDI in multi-brand retail
:-| FDI in Multi Brand Retail Sector - Discussion

 

[nrj]

BJP's Arun Shourie praises PM, supports diesel price hike and FDI in retail

BHOPAL: Even as the BJP has strongly opposed the Centre's decision to hike diesel prices and allow FDI in retail, senior party leader and former Union minister Arun Shourie has justified the move saying it was the need of the hour.

"Increasing diesel prices was the need of the hour," Shourie, who had come here to participate in a seminar, told reporters here last evening.

A lot of hue and cry is being raised unnecessarily on the issue of FDI in retail as this will neither lead to profit nor losses, the BJP leader said.

"Prime Minister Manmohan Singh has for the first time shown his strength," Arun Shourie said opposing BJP's stand.

BJP's Arun Shourie praises PM, supports diesel price hike and FDI in retail - The Times of India

When asked about the authority of the prime minister, he said, "Prime Minister in India has complete authority. But the Prime Minister is not using his authority. That is why his authority has been reduced."

On whether the BJP was politicising on the issue of price hike in petroleum products, which has being part of NDA's decision to abolish administered price mechanism for fixing the cost of petroleum products, Shourie curtly said, "You should ask them. I am against disruption of Parliament."

FDI in retail & aviation: No need to worry on FDI, says Arun Shourie - The Economic Times

 

[Bangalorean]

Hah - I love Arun Shourie!!!

I hope all sane and honest people, cutting across party lines, do some good for the nation. I am glad that someone from the BJP has stood up and spoken against the nonsense and hypocritical stand of the BJP. That hysterical madwoman Uma Bharti has again ranted about "burning down FDI shops". What does she think this is? Does she think she is in Pakistan? Let her convert to Islam and move to Pakistan, she can burn things at the drop of a hat.

 

[anoop_mig25]

BJP's Arun Shourie praises PM, supports diesel price hike and FDI in retail

BHOPAL: Even as the BJP has strongly opposed the Centre's decision to hike diesel prices and allow FDI in retail, senior party leader and former Union minister Arun Shourie has justified the move saying it was the need of the hour.

"Increasing diesel prices was the need of the hour," Shourie, who had come here to participate in a seminar, told reporters here last evening.

A lot of hue and cry is being raised unnecessarily on the issue of FDI in retail as this will neither lead to profit nor losses, the BJP leader said.

"Prime Minister Manmohan Singh has for the first time shown his strength," Arun Shourie said opposing BJP's stand.

BJP's Arun Shourie praises PM, supports diesel price hike and FDI in retail - The Times of India




FDI in retail & aviation: No need to worry on FDI, says Arun Shourie - The Economic Times

Arun Shourie is no longer related to BJP . he had left BJP duning last lok sabha election when he questioned party high commands on election failure

 

[drkrn]

Hah - I love Arun Shourie!!!

I hope all sane and honest people, cutting across party lines, do some good for the nation. I am glad that someone from the BJP has stood up and spoken against the nonsense and hypocritical stand of the BJP. That hysterical madwoman Uma Bharti has again ranted about "burning down FDI shops". What does she think this is? Does she think she is in Pakistan? Let her convert to Islam and move to Pakistan, she can burn things at the drop of a hat.

bjp itself will be a supporter of such moves.these are taken in interest of the nation only
the opposing from bjp is only due to rivalry so they can't easily pass every decision taken by congress

 

[parijataka]

Why is US so keen on FDI in retail, few months ago Clinton had also met Didi.

Nancy Powell may have discussed FDI with Mamata

KOLKATA: US ambassador Nancy Powell's meeting with Trinamool Congress chief and West Bengal chief minister Mamata Banerjee, barely a couple of days after the latter quit the UPA government at the Centre, has sparked off speculation within political circles.

According to sources, Powell was keen to know more of the reservations that Mamata has against Foreign Direct Investment (FDI) in retail in the meeting that lasted nearly 45 minutes.

It was Mamata's opposition to FDI in retail that prompted her decision to quit the UPA. "US companies will be the beneficiaries if FDI is allowed in retail.

There is strong belief that the Manmohan Singh government took the decision to allow FDI in retail under pressure from the US. Mamata's objection to the decision and the subsequent pullout from the government at the Centre, came as a shot in the arm for parties in the opposition like the BJP and the Left.

Powell may have wanted to know the exact issues that has led to this opposition. This would help to develop a strategy through which undue fears within the general population may be allayed," a source revealed. The UPA is also planning to bring the insurance and pension bills in Parliament soon.

US companies are likely to be stakeholders if these bills get passed. With the US realising that any reforms of this kind are likely to face stiff opposition in India, it is likely to formulate a different strategy to try and help the Centre in its attempts to bring about economic reforms. This is not the first time that Powell has met Mamata.

A meeting between the two was convened earlier this year before US secretary of state Hillary Clinton's visit to India. "After that meeting, Powell had heaped praise on Mamata and commended her coming to power in the state.

Even Hillary had met Mamata during her visit to India and discussed the possible areas that can be explored for better economic ties. Mamata and the Trinamool has always held a certain level of importance in US-India policy, particularly after the Left was trounced. The US wouldn't want Mamata to step into the shoes of the Left as the biggest US-baiter in India," the source added.

 

[parijataka]

Posted this in another thread, posting again for the APMC reform introduced by Gujarat that has helped their farmers.

How did Gujarat Become a Farming Paradise?

The onset of summer in the Saurashtra region of Gujarat can be a frightening prospect. The rocky terrain of low hills and the semi-arid plains begin to radiate immense heat. Rivers and wells dry up in tandem. Water shortage looms large and the memory of the severe drought of 1999-2000 returns to haunt. God bless the man who tries to indulge in cultivation of crops in these parts.

But that's exactly what hundreds of farmers do several times a year in the heart of this unfriendly terrain. Wheat, cotton, banana, papaya, sugarcane, tomatoes and a variety of other crops sprout all over, erasing forever the cliché of Saurashtra being a parched expanse.

Today, one can spot crops that weren't grown in these parts just four or five years ago. In Adtala village, farmer Vallabhai Patel, who was previously cultivating cotton, grows papayas. With a limited supply of water, he got plentiful yield.

In Sarangpur, also in Saurashtra, Swami Arunibhagat is surely a God-blessed man. A leader of the liberal religious group, Swaminarayan Movement, he has converted 175 acres of dry land into a lush haven for sugarcane, tomatoes and genetically modified cotton. He has achieved record yields that have attracted farmers from more fertile lands to come and learn how he did it. It almost looks like a miracle wrought by Lord Hanuman of the famous temple in Sarangpur.

The swamiji is not alone. The entire region of Saurashtra, along with neighbouring Kutch, a half-desert, half-salty marsh region, has become the engine of a farming revolution in Gujarat, propelling the state into one of the fastest growing agricultural economies in the country. Gujarat's agriculture has grown 9.6 percent per year in the last decade or so, surpassing the national growth rate of 2.9 percent and boosting rural incomes. Agriculture in India has been condemned to an annual growth of 4 percent or less ever since the nation's economic reforms pushed it towards a service-oriented economy. The share of agriculture in India's gross domestic product (GDP) has fallen to just 16.6 percent from 46.3 percent about six decades ago. Somewhere, policymakers seemed to have ignored the importance of farming to the economy. But Gujarat hasn't allowed its keenness to promote industry overshadow its farming sector.

"Although widely lauded for adopting an aggressive industrial policy that has made Gujarat a much-favoured destination for investment, the Bharatiya Janata Party (BJP) has actually devoted a great deal of energy and resources to accelerating agricultural growth in the state through a broad spectrum of policy initiatives," say agricultural scientist Ashok Gulati and four others in an article published by the Economic and Political Weekly.

Studying the various points of attack that the state has used to revive agriculture could thus unveil important lessons for the whole country. After all, if the water-starved Saurashtra and Kutch could do it, why not the rest of India?

Fertile Policies
At first glance, the agricultural miracle in Gujarat seems to have been supported by factors such as good monsoon for most of the decade, increasing minimum support prices from the Centre and the spread of BT cotton, a lucrative cash crop. But all these benefits were available to other parts of the country as well and the superlative performance of Gujarat is not explained by them.

Gujarat was early to amend the laws governing the marketing of agricultural produce and allow farmers to sell their output directly to private buyers. Even today, many states haven't done so and keep the farmer tied to the official procurement hubs. Some have gone back on reforms. But Gujarat has persisted with opening up market access to farmers.

This also opened up contract farming. In 2004-05, Gujarat took an unusual step. It allowed companies to buy crops from farmers a year in advance. This helped the farmers hedge against price upheavals and guaranteed a minimum price. What's more, there is also some flexibility to allow higher payments if prices rose at the time of transaction. While it reduced market risks for the farmer, it also encouraged companies to invest in farming indirectly.

Among many steps that Gujarat govt took after the disastrous 1999-2000 drought were water conservation and building check dams, introducing contract farming in which companies bought the produce from farmers one year in advance and modifying the APMC Act in 2005 that freed farmers from selling produce to APMC and allowed them to sell to private parties. This has allowed even disctricts like Kutch that has desert and salt marshes to expand their agriculture.

 

[Drona]

Gujrat like farming policy would be impossible implement in Maharashtra, even with FDI ! because heavy control of co-operative sector, which mostly controlled by NCP and Congress. Co-operative sector is biggest political tool for both congress to get farmer's vote, Maharashtra farming is highly subsidised through these co-operative sector, but most is lost in corruption. Also Maha has highest farmer suicide count. If Gujrat like farming policy can be implemented only when this co-op sector is removed !

 

[Raj30]

Bharti Walmart