FDI blame game.

[Hello_10]

Modernise retail but don't hand it over

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.

Vaz, who is also playing a key role in creating awareness of diabetics and its effect, said he would hand over a bus to Amitabh Bachchan on October 4 in Mumbai which will travel around Mumbai raising awareness about diabetic disease.

Referring to visa restrictions on non-EU students, Vaz said "our education sector will completely collapse without Indian students".

Modernise retail but don't hand it over, British MP Keith Vaz advises Indian MPs - The Times of India

 

[Hello_10]

Foreign companies pulling more money out of India

MUMBAI: Foreign direct investment, the sort of sticky long-term money India craves to fund its current account deficit and build up its infrastructure, may not be so stable after all.

According to a Nomura report, multinational companies have been pulling money out of India at an accelerating rate, moving $10.7 billion out of the country in 2011, up from $7.2 billion in 2010 and just $3.1 billion in 2009.
Outward flows are bad news for a country that this week saw its rupee currency hit a new record low as investors worry about its hefty fiscal and current account shortfalls, slowing economic growth and policy gridlock.

Still, corporate funds continue to enter India even as existing investors exit. Inbound foreign direct investment surged 88 percent to a record $36.5 billion in the fiscal year that ended in March, according to official data.

"Global deleveraging may have forced companies to sell their Indian assets and repatriate funds to their home country," Nomura analysts wrote in the Friday note.

"At the same time, domestic push factors such as slowing potential growth, the high cost of doing business and regulatory uncertainty have weakened the investment climate, likely causing this erosion. This is not a good sign."

Telecoms companies Etisalat of Abu Dhabi and Bahrain Telecommunications Co are leaving India after their mobile phone licences were among those ordered cancelled by an Indian court amid a corruption probe.

New York Life recently exited its 26 percent stake in an Indian insurance venture with Max IndiaBSE 0.03 % for $530 million, while U.S. mutual fund giant Fidelity Worldwide Investment recently struck a deal to unload its India unit to local company L&T Finance Holdings.

Foreign companies have been increasingly frustrated by regulatory uncertainty and a lack of reforms. Rules that would allow foreign companies into the supermarket and airline industries are stalled.

Vodafone, the world's biggest mobile carrier, has repeatedly clashed with authorities in India, which is trying to collect more than $2 billion in taxes from it through a retroactive law change, even after India's highest court ruled in the company's favour.
Vodafone, the biggest overseas corporate investor in India, has said it will not walk away.

The Nomura report said the services, manufacturing and real estate sectors probably saw "the maximum outflow".

Foreign companies pulling more money out of India: Nomura - The Economic Times

 

[Hello_10]

Modernise retail but don't hand it over

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.

Vaz, who is also playing a key role in creating awareness of diabetics and its effect, said he would hand over a bus to Amitabh Bachchan on October 4 in Mumbai which will travel around Mumbai raising awareness about diabetic disease.

Referring to visa restrictions on non-EU students, Vaz said "our education sector will completely collapse without Indian students".

Modernise retail but don't hand it over, British MP Keith Vaz advises Indian MPs - The Times of India

I used to have a strong support for FDIs in industries in early 90s as we wanted to see India as a place for foreign FDI, which would provide high skills/low labor cost with good infrastructure to foreign companies, who would then manufacture their products in India and sell it in rest of world, hence generating jobs for the locals of India, similar to how China/ASEAN/East Asia/South America became so favorable destination for FDIs for different industries in 80s/90s. and the result we find that we now have production lines of even BMW/Mercedes in India also as they first manufacture their cars in India, sell them to Indian Middle Class also but mostly they export it to rest of world, generating employment for Indian Skilled/non-skilled people both. but even since 90s, it was clear that FDI in retails will harm the domestic shops/services, as, how selling shops/services to foreigners will help the common public of India????

this Outward Remittances of $11bn/year can well rise to above $50bil by 2020, if you sell your shops to foreigners, the services which accounts for about 55% of $2tn Indian economy. there must be a clear sense, why would India 'hand over' its shops to Western companies, while India already have home Super Markets also, which may be improved by introducing new supply chain concepts etc??? and also, until the outer world is unstable, why can't we delay FDI in retails for few more years, to help our home Super Markets get matured to face competition by Wal Mark etc.

(also, why the government is shy to mention the unacceptable increase in 'Foreign Interference' in India through this FDI in retails, which will make India a very easy target for those Western Champions who just try to get something done in India, somehow, this or that way?????)

 

[Hello_10]

PM Manmohan Singh: This crisis was as bad as 1991 when gold was pledged

PM Manmohan Singh: This crisis was as bad as 1991 when gold was pledged - The Times of India

I would compare India in 1991 and 2012 in four points as below:

1: Growth Rate of India was around 0% in 1991, only, while growth rate of India was around 5.5% for last 2 quarters this year, but still better than many other emerging economies like Brazil, which expect hardly 0% growth rate for this year due to bad external market.
growth rate of close to 6% for an emerging economy is said to be 'good', but considering 'seriously bad' European economies with bad reports from other economies including slow down in even China also, I would say 5.4% growth rate of India for last 2 quarters was 'not bad'. as, growth rate of Export of India was the highest among the top 30 economies during last 5 years, as reported by WTO, higher than China also, so its obvious that slow down in external market would have an effect on the Indian economy . (check WTO datas)

2: average PMI for Industries of India during whole 2012 is around 53.5 to date, which is 'quite good', as even China had its PMI below 50 points many times during this year. while average PMI for services for India is close to 55 for this year, to date? overall industrial growth of India is still well in (+)ve territory this year while that of China is in (-)ve territory for this whole year, to date

3: total Foreign Reserve of India was less than $1.0bil in 1991 while its close to $300bil right now???? while Import is still 6% less for this financial year, reducing overall Trade Deficit for this financial year, so how can we compare India in 2012 with 1991???? while we clearly understand that even if export is also around 5% less for this financial year to date, its still pretty good considering 'seriously' bad European economies, together with slow down in whole world???? hence we find 'Trade Deficit' for this financial year is less than last year, which is quite good. and Gold was pledged in 1991 as India didn't have enough foreign reserve that time while now India import even gold of worth over $40bil every year, with luxury stuffs of over $40bil every year

4: Indian currency is 'only' 8% less as compare to its value a year before and 'only' 8% less than its value in late 2001, when it was $1US=50 rupees that time, while India had average inflation around 7% per year during last 10 years???? then here, how is it wise to say it 'bad' even if rupees depreciate to $1US=60Rupees? while its value is still hardly $1US=54rupees right now????
Indian Rupee to US Dollar Exchange Rate Graph - Sep 23, 2011 to Sep 21, 2012

its clear that 'men of Sonia' are giving wrong information to common public to help the foreigners loot India, the Americans/British who are declared enemy of any part of world which may get higher progress.......

 

[INDIC]

Main problem is increasing fiscal deficit and risk of losing investment grade ratings.

 

[Hello_10]

and its not about BJP or Congress, it was clear even since the early 90s that FDI in retails would be an "anti-national" step. even during the crisis of 1991, "Rao Government" didn't allow 'full' FDI in Services, and even during the time of BJP government in early last decade, this proposal came on the table but it was called 'anti-national' by even Congress party? like how Rao Government also considered it 'anti-national' in 1991 also? hence, how has it become so important to take this big step 'over night'??????

how can the today's Indian economy be compared to the state in 1991? in what way Mr Singh finds Indian economy in comparison of 1991, while now the US's and EU's economies needs help and India would now be worried for "Outward Remittances" from the foreign companies???? as we now have every technology in India itself, to help the Indian Super Markets to modernize by themselves by introducing new supply chain techs etc??? then, in what way Mr Singh finds Indian economy in comparison to 1991, when we did need foreign technologies in industries, but now we dont need foreign techs to that extent?????? also, it was clear even since 90s that FDI in Retails would badly harm the Indian Economy, so why dont we remember those reasons, why we didn't allow FDI in Retails in 90s, and whats new reasons we have got now that we now need FDI in Retails while now we don't have any 'Rao' type powerful leaders in Congress also, who may tell us, why he didn't let the Services go on the hands of foreigners in 90s, which accounts for 55% in Indian economy????

see what the finance minister of BJP Government in early 2002 says as below:

"When the NDA was in power, Priyaranjan Dasmunshi ( Congress) had raised the FDI in multi-brand issue in Parliament and said it will be an anti-national step. Arun Shourie had then assured the House that no such step is being taken... What was anti-national in 2002 has become patriotic today," he said

He maintained that though there may be certain "best practices" of the multinationals in processing, cold chains, transportation and the like which can be emulated, there is no technology that is available only with them and not with India. "So for this FDI is not required,"

"The implementation of this earth-shaking reform is to be decided by the states... We are going to have elections in Rajasthan and Delhi. An efficient company like Walmart has said it will take 18 months to come to India. What if the government changes?
"You have politicised the prices. Increasing the price of diesel is not a reform process," Sinha said. (its it international market price )

FDI in retail full of holes, MNCs may not find it attractive, says Yashwant Sinha - The Economic Times

here Im totally agreed with Mr Nawaz Sharif that "Rao Government" might have completely 'copied' his economy policy for Pakistan. as we know Mr N.Rao as a corrupt man but he was certainly not a traitor . and if India might have copied economy policy of Pakistan then its because Mr Rao was in real power in early 90s, who had sided Sonia during his rule also, with keeping Mr M.Singh just as a finance minister. this Manmohan Singh, who work like an American/British Agent, might have sold India a long time before in 90s, if he and his Lord Sonia might have got enough power during the time of Mr N.Rao........

and hence I would like to give full credit of Economic Reforms of India to Mr Nawaz Sharif as by introducing Economic Reforms in Pakistan, he might have established a "red-line" for the men of Sonia like Manmohan, who had to prove that economic reforms of India must at least be as much beneficiary for India as it was for Pakistan. and because of Rule of Mr N.Rao, India could have at least as good economic reform as Pakistan+ASEAN+China. the ASEAN+China who adopted the similar economic reforms even since 70s

India copied Pak reforms in 1990s

Islamabad: Pakistan Muslim League-Nawaz (PML-N) chief Nawaz Sharif has said India copied his government’s initiatives in the 1990s.

Sharif was the prime minister in October 1990 and initiated an ambitious economic programme. In June 1991, Rao became the Indian prime minister and appointed Manmohan Singh as the finance minister. Soon the rupee was devalued and Rao abolished industrial licensing and other socialist measures which India had not adopted until then.

India copied Pak reforms in 1990s: Nawaz Sharif

 

[anoop]

Read that bill mate... 70 pc of the products must be bought from domestic industries...

You are wrong here , u read bill again .its 30 % from local industry that to taken as average of five years.

 

[karan.1970]

FDI should come but not in retail....i am against FDI...if FDI is allowed then GOI should make it clear to multi-national company that They are only allowed to sell Indian product or foreign product made and fabricated in India..

And what makes you think that existing retailers (both Big and Small ) are not able to import and sell cheap Chinese stuff?? The stupidity of Opposition parties is in claiming that only walmart can import and sell imported stuff and existing retailer chains like Shopper stop, Big Bazaar etc and even local kirana stores can not do that.. Bloody Idiots

 

[INDIC]

And what makes you think that existing retailers (both Big and Small ) are not able to import and sell cheap Chinese stuff?? The stupidity of Opposition parties is in claiming that only walmart can import and sell imported stuff and existing retailer chains like Shopper stop, Big Bazaar etc and even local kirana stores can not do that.. Bloody Idiots

Chinese products are even flooded in roadside carts or hawkers.

 

[Hello_10]

Raghuram Rajan: I don't think we are anywhere near 1991 crisis

Raghuram Rajan: I don't think we are anywhere near 1991 crisis - Page2 - The Economic Times

average growth rate of India for the 11 years, in between 1992 to 2002, was around 5.8% to 5.9% only (check), excluding the year 1991 also when India had even -ve growth, close to 0%. hence I would say that India has got 'slow down', which is 'not bad' in these extremely bad external market.......here Mr PM is right to say that 'money doesn't grow on the tree', which means that India needs to raise Diesel prices as 80% of it is imported and even if Diesel price is around Rs50 right now, India import it for Rs65 per liter which has resulted in paying heavy subsidies, close to $30bil/year on just energy which is very serious. but it doesn't mean that Indian Economy is like 1991, definitely not. its only "Policy Paralysis" of UPA who can't raise domestic oil prices to the level of International Market due to 'home politics'. and on the top of that, If Mr M.Singh says that the condition is as bad that India had to pledge Gold, then he is a liar, as, total foreign Reserve of India was less than $1.0bn in 1991 while India import even Gold worth over $40bil every year? I mean, why is it important to 'lie' to get FDI in Retails anyhow, while this step was labled as 'anti-national' even in 1991?????? why India didn't allow FDI in retails even in 1991 and why Mr Singh is 'lying' to get "FDI in Retails" done on the back of fiscal deficit due to Oil Prices, and this so called "anti-national" step was taken 'over night'?????

 

[Hello_10]

And what makes you think that existing retailers (both Big and Small ) are not able to import and sell cheap Chinese stuff?? The stupidity of Opposition parties is in claiming that only walmart can import and sell imported stuff and existing retailer chains like Shopper stop, Big Bazaar etc and even local kirana stores can not do that.. Bloody Idiots

sir, losing jobs to foreigners will bring much more pain than reduced prices. even if you pay little high prices but if the money is kept inside the country then it is then circulated inside the country, which then generate jobs and more revenue/taxes. until you keep money inside the country, its all OK, and if you lose it to the foreigners then its a "Total Loss". for example, if you pay little high but to your home companies then it then results in giving employment to workers/labors who first pay direct taxes, including the company which pay taxes on its profit. and then they spend their salary/ money, in India itself generating jobs for the shops/services/products this way again which then generate Indirect tax. it is a Thumb Rule that investment of $1.0 result in return of 66cents (66%) through different direct and indirect taxes. foreign companies sent around $10.7bil in 2010 and if the same might have been earned by Indian companies then they might have first done investment of that $10.7bil to generate jobs of this amount with paying around $7.0bil as taxes also, which might have been used to invest in infrastructure with generating more jobs while investment in infrastructure has much more meaning than generating jobs. and this Outward Flow of $10.7bil may well rise to above $50bil by 2020, if you let full services go on the hands of foreigner companies. while there is no technology untouched by India now and then why can't we modernize our retails/services by ourselves?