Indian Government announces FDI in many industries!!

[Abingdonboy]

There is significant mulpler effects form this descion-

1) Employment- these stores a huge and require huge numbers of employees at all levels from retail to farmers, drivers,stockers etc

2) Boost to other sectores such as agriculture which will no longer have to waste mammoth stock and can get cold-store facitlitieswhich is a major plus and will also mean agricultural output increases as less is wasted, India already being a MAMMOTH agricultrual player will only get boosted. Motor industery wll also get a boost, these compaines are going to need trucks for delivery and transport, of late the Large truck sales have taken a slip and these guys entering the market will be pretty big espially as these guys are used to Western transporting costs and will be flawed by Indian prices for pretty much the exact same procuct Bhrat Benz,TATA,VOLVO etc could all get a major boost here. Also the constriction sector will get a boost with having to build these massive supermarkets.


3) Competion-competion is always a good thing and the benifits will be delivered to the consmers, added choice and more comptitive pricing and breaking an monopolisitc tendancies in the sector.


Whilst the intial steps will be taken in large cities there will be a definate "trickle-down" effect for the entire nation and the states who are reluctant at first can wait and see what happens in states that give the go ahead and when they see the postivie results in other states you can bet they'll change their tune in a heartbeat and scamble to get their slice of the pie.



All in all, a good move.

 

[Bobby]

Rupee gained more than 2% in a day...wow

 

[cloud_9]

How will Fdi affect the day to day life of an aam aadmi ?

Storage and logistics.

Why are people acting like after the decision is fromally accepted you will have huge retail stores the very next day

 

[Phoenix89]

Firms see India 3rd most-favoured destination: UN report

NEW DELHI: Major global companies consider India their third most favoured destination after China and the United States, a U.N. report said on Thursday, and investment inflows could increase by more than 20 percent both this year and next.

Foreign direct investment (FDI) flows into India leapt 30 percent to nearly $32 billion in 2011, though held back by slow pace of reforms, it still remains a long way down the league table of FDI recipients. China drew $124 billion last year, while Brazil attracted nearly $67 billion and Russia $53 billion..

"The FDI inflows into India can go up by 20-25 percent this year and by about 20 percent next year, if the present trend continues," said Nagesh Kumar, Chief Economist, United Nations Economic and Social Commission for Asia and the Pacific, while releasing the UNCTAD's World Investment Report 2012.

Some 179 global companies - from the manufacturing, services and primary sectors - were surveyed between February and May, on their favoured investment destinations for 2012 to 2014.

Kumar said FDI growth seems to be keeping its momentum in 2012, referring to furniture maker IKEA and Coca Cola's (KO.N) recent announcements to pump nearly $5 billion combined into India over the long term.

Though India's economic growth slowed to 5.3 percent in the March quarter, its slowest in nine years, its trends still compared favorably, Kumar said.

"Compared to many other places, India is doing better in terms of growth," he said, adding global investors were looking at the long term prospects and wide market in Asia's third largest economy.

The report said worldwide FDI flows exceeded the pre-financial crisis average in 2011, reaching around $1.5 trillion, despite turmoil in the global economy, and is projected around $1.6 trillion this year.

Global companies are sitting on hefty cash reserves and waiting for the euro zone situation to stabilise before investing, he said.
Earlier this year India allowed full foreign ownership of single brand retailers, although late last year it backtracked on a plan to allow in foreign supermarkets.

Many investors are hoping it revives that plan soon, after Prime Minister Manmohan Singh recently took over the finance portfolio and talked about the need to address problems in the insurance and mutual fund industries, as well as taxation.

Kumar said corporate investors look at long term prospects and recent controversies over retroactive tax proposals broadly aimed at taxing companies like Vodafone (VOD.L), or proposed general anti-tax avoidance rules ( GAAR) would not hurt India's prospects as an investment destination.

Firms see India 3rd most-favoured destination: UN report - The Times of India

 

[TopCat]

GOI has no other option with piles of current account deficit. They need FDI badly regardless where it come from.

 

[Abingdonboy]

GOI has no other option with piles of current account deficit. They need FDI badly regardless where it come from.

Mate, the GoI has easily enough foreign reserves to cover this CA deficit-stop trolling.

 

[tarun1987]

Good decision from MMS

 

[harpoon]

Someone Pls suggest MMS to open up FDI in indian railways and in various state transport corps. to improve rail and bus servives for passengers.

Don't know about that but its high time that train fares are increased. Its been a decade since the last time fares are increased. Otherwise our railway will fall into a pit like PR.

 

[TopCat]

Mate, the GoI has easily enough foreign reserves to cover this CA deficit-stop trolling.

10 billion dollar per month of deficit without FDI??? Where will the money come from? Reserve? How long the reserve going to last?

 

[ajtr]

Centre mulls Metro in cities with over 2 million population

NEW DELHI: Union urban development minister Kamal Nath on Thursday said the Centre would support Metro rail projects for all cities that have a population of more than two million. On the occasion of foundation-stone laying ceremony of Kochi Metro he said the government has decided to support Detailed Project Report preparation of such cities.

"India is getting urbanized rapidly. India's urban population has increased from 285 million in 2001 to 400 million in 2011 and by 2030 is likely to reach over 600 million. The number of towns has increased from 5161 in 2001 to 7935 in 2011. Even at this relatively low level of urbanization (31%), India has the second largest urban population in the world," Nath said.

He said Metro projects are already under implementation in Delhi, Kolkata, Mumbai, Bangalore, Chennai, Hyderabad and Jaipur.

 

[Abingdonboy]

10 billion dollar per month of deficit without FDI??? Where will the money come from? Reserve? How long the reserve going to last?

And what do you think this move was all about?

 

[ajtr]

Mamata gives govt 72 hours, PM prefers to ‘go down fighting’


Even before Mamata Banerjee could breathe out all the fire the UPA had stoked in her belly by hiking diesel prices, the government threw the country’s doors open to FDI in multi-brand retail – another issue that goes against the TMC’s pro-grassroots drive in Bengal.

“I would have been very happy if I could withdraw the support at the very moment. But if I withdraw the support other parties will come up to support them. They will accuse me of creating instability,” Banerjee declared angrily. Banerjee issued a 72-hour-deadline demanding the government roll back the fuel price hike and FDI proposals.

Mamata Banerjee.
While she maybe busy swallowing the FDI punch to her political bible and busy framing her new hate speech for the UPA, Manmohan Singh has done what some would say is the unthinkable. The man who the country yearns to hear, apparently told his Cabinet colleagues that, “If we have to go down, we have to go down fighting.”

IBN Live reports suggest that fed up by the constant hammering by the Opposition and its allies, the UPA decided to change its stance and taken on protests against their policies aggressively.

 

[JAT BALWAN]

^^ Momta ka rona chalu ho gaya...

 

[ajtr]

10 billion dollar per month of deficit without FDI??? Where will the money come from? Reserve? How long the reserve going to last?

Indian reserves will last more than the time bangladesh lasts on the face of this earth.............

 

[Backbencher]

All the news channel telecasting this FDI