Indian Government announces FDI in many industries!!

[karan21]

how it will take them to 'world level'...does the indian govt subsidize the production and export to the extent chinese govt does ? No..so simply put indian manufacturers would not be able to face the heavily subsidized chinese manufacturers and hence perish without the protective clause of the 30% local sourcing...

the govt rushing headfirst into this cesspool of FDI in retail can blow back very badly in the face..

and then who is going to create the infra for the retailers..? the cold storages, the processing plants, the railway lines etc for the farmers to compete ? surely not the retailers and surely not this govt...so how would they compete with this pathetic infra ?

The infra will have to be built by the corporations and retailers. They are the ones who are sourcing products and the purpose of this reforms is to improve the agriculture sector of India, to prevent wastage and make it more efficient.

Now coming to subsidy, I believe the govt is promoting diversification in the smes, but yes subsidies will be required. I am sure if Anand Sharma is heading this program he will be able to convince the govt for subsidising small industries, afterall he promises to achieve 500 billion exports by 2014. I think local sourcing should be 60% atleast.

 

[Infinity]

Small retail shopkeepers will be affect because of this FDI?

May be but what is their Contribution to state and central government.............None of them pay their taxes

 

[Infinity]

I'm not a Congress supporter.......so relax comrade That was joke a bit on the ideological lines

Comrade..............no he is not...............His Posts in PDF is the proof

 

[karan.1970]

Small retail shopkeepers will be affect because of this FDI?

That's a myth propagated by the opposition parties to hinder any good work.. In our country, the people in opposition take the word opposition too literally

 

[Marxist]

bit old news

FDI in retail: Manmohan Singh opposed FDI in 2002, BJP produces letter

NEW DELHI: BJP on Tuesday used a 2002 letter written by then Opposition leader of the Rajya Sabha Manmohan Singh to blunt Congress' charge that the then NDA government had travelled some distance on allowing FDI in retail trade.

BJP leader Arun Jaitley, who rejected Congress' claim that the then government led by BJP had attempted to change the retail policy, said Manmohan Singh had amplified NDA's line against allowing FDI in retail.

In a letter to the chairman of a Mumbai-based trade body on December 21, 2002, Singh had said that the issue was raised in the Rajya Sabha on December 19. "The finance minister gave an assurance that the government had no proposal to invite FDI in retail trade," Singh had said in his letter.

Jaitley also used speeches Kamal Nath and the then chief whip of Congress PR Dasmunsi to drive home his party's point that the charge of opportunism on retail trade should be directed at the ruling side. In a speech in the Lok Sabha on December 16, 2001, Dasmunsi had said that any proposal to allow FDI in retail would be an "anti-national" step.

"The retail sector in India is dispersed, unorganised and labour intensive. It is not desirable to lift the ban on FDI in retail trade," Dasmunsi had said. The BJP leader said his party's opposition to retail FDI has been prompted by its concern for the domestic manufacturing sector.

"Our manufacturing sector, at best, is modest. International investors will source internationally and most merchandise sold in the first instance would be sourced from the low-cost economies of the world. It will be ill-advised to open the sector till such times we can implement effective reforms to reduce the cost of our own manufacturing by introducing steps such as affordable interest rates, better infrastructure, better trade facilitation and low cost of power," he said.

FDI in retail: Manmohan Singh opposed FDI in 2002, BJP produces letter - The Economic Times

 

[Infinity]

Will be great booster for farmers like me...

was waiting for this ...

Sure it will help Farmers..........They will get right price to their products .............Death to all Dalals..............

 

[TopCat]

If somebody thinks that the FDI medicine will heal Indian economy then they are wrong. Reform and more reform and one day you will run out of all reform. Then what will you do?

OK genius then you tell us what to do...?

Your hatred toward India is taking a toll...

WTF are you on? Do you think reforms are wishes? Reforms create a situation where more investment can be made and hence more money made. Reforming will open up the ecomomy that will alow the Indian economy to flourish and take advantage of its economic fundamanetlas that will allow it, along with China, to displace the US as the largest economy in the world within most of our lifetimes-~2045-50.

I don't think you truly know what a reform is or much about economics at all IMHO.

You guys need to define reform first. I dont think allowing certain more percentage of FDI in retail sector will mean any big difference to overall economy. Yes it will bring few billion dollar of foreign investment to India but will it be enough?

The reform should be done in a way which should address the core issue of the Indian economy not widen the issue. For instance, this so called reform will not address trade deficit neither current account deficit rather will increase them. This reform will not create wealth for the lower segment of the society neither will create employment but will reduce the opportunity for the poor.

By and by I support 100% FDI in every sector but I dont want to call them as reform. India should had done that in early 90s and opened its economy for competition. Rather, doing it in later stage created the opportunity for the vultures to exploit the accumulated wealth that indian society hard earned over the years.

 

[TopCat]

Sure it will help Farmers..........They will get right price to their products .............Death to all Dalals..............

It will help only few wealthy farmers... the poor has nothing in it too.

 

[nair]

Good step by GOI... I hope they wont go back this time.... Things are really gone bad in country with this GOVT.....

 

[karan.1970]

You guys need to define reform first. I dont think allowing certain more percentage of FDI in retail sector will mean any big difference to overall economy. Yes it will bring few billion dollar of foreign investment to India but will it be enough?

Nothing is ever enough.. But.. a few billion dollars of FDI, will reduce debt burden on the economy, resulting in better sovereign credit rating and hence better interest rates (lower) for govt borrowing, reducing interest payments and hence reducing deficit which in turn again makes the credit rating better and the cycle continues..

 

[Marxist]

2002 news ....

No FDI in retail: Shourie

NEW DELHI: Government does not propose to permit foreign direct investment (FDI) in retail business, commerce minister Arun Shourie assured the Lok Sabha today. "The existing policy being followed since 1997 is that government is not going to permit FDI in retail trade," he said during the Zero Hour.

He was responding to a statement of Congress chief whip PR Dasmunsi that differences had arisen within the government on the issue with the Planning Commission opposing FDI in retail business, while the 10th plan recommending it. Mr Dasmunsi said, if the ban on FDI in retail trade was lifted, it would lead to adverse impact on employment and destroy the prospect of the business in the country.

No FDI in retail: Shourie - Economic Times

Congress opposed this FDI in retail citing adverse effect on employment and Business prospect of the country .....

 

[Jon Snow]

partially delivers..that is...in Diesel reform and LPG subsidy...which were long overdue.

but regarding FDI in retail...the clause which mandates the big brands would source 30% of their products from local manufacturers is doubtful and IKEA has already said it would not do that...so basically india would turn into a duping ground for cheap chinese goods from the shelves of walmart and their likes.

The fine print of the the essential clauses has not yet been out...so lets hold our horses before jumping "yahoo". Not to mention many of the states have said they are not going to allow FDI in retail including congress ruled states like Kerala..so in the end i dont think its going to make much of a difference..

IKEA has given their reasons - which according to me are pretty reasonable. They are not against sourcing 30% from Indian manufacturers but are against the rule that these 30% need to be small scale industries which have very small revenue( I think the limit is 1 million) , If a company like IKEA starts trading with these small scale industries - they won't stay small scale for long which will result in IKEA having to go around constantly replacing their local manufacturers every couple of years - no retailer wants this, they all want to sign long term contracts with manufacturers which will save money for both the manufacturer and the retailer.
All Ikea wants is a small tweak in the policy - they agree that initially they will trade with small local manufacturers but that the govt doesn't force them to change the manufacturers once these small industries have grown.

 

[Roybot]

2002 news ....

No FDI in retail: Shourie

No FDI in retail: Shourie - Economic Times

Congress opposed this FDI in retail citing adverse effect on employment and Business prospect of the country .....

And BJP is opposing it now, when they were trying to push for it in 2002. All this petty politics is bringing the country down. FDI is the need of the hour, safeguards can be put in place to make sure Indian small businesses don't get affected.

 

[Infinity]

It will help only few wealthy farmers... the poor has nothing in it too.

Please care to explain.....................why only rich farmers and not poors..............Even today the Wealthy farmers sell their products as per their wish.............Say if a wealthy farmer don't get expected price for his product say cereals..........he will store it till he get a profit from his sale .......but a poor farmer will have to sell his product to Dalal to be debt free from loan he has taken for farming.................

 

[Manas]

Will be great booster for farmers like me...

was waiting for this ...

Don't get excited.
There is already provision for 51% FDI in the horticulture , and backend logistics like to setting up cold storages etc .
But the investment has not been very encouraging.

Business model foreign organized retail total market control .They controls the price,not the farmers. They work for profit, not social service.

Anyway farming product is small part of Walmart's shopping items. They sell all kinds of consumer goods, and in the absence of robust manufacturing sector in india , there is real chance of being flooded with Chinese maals rising to wiping of indian SMEs , along with small traders, traditional wholesaler .

And this policy of allowing it set shops only in big cities, is as stupid as six cylinder cap ,a sure shot way of encouraging black marketing.