UK wants India to open retail, raise FDI limit in defence

[SpArK]

UK wants India to open retail, raise FDI limit in defence​

NEW DELHI: Britain wants India to open up retail sector and further liberalise defence and financial services to promote economic growth and deal with the food security problem.

The issues are likely to come up for discussion during the visit of UK's Secretary of State for Business, Innovation and Skills Vince Cable who is arriving in India on January 17 on a three-day visit along with a 50-member business delegation.

"We want to talk to the government about opening up areas of retail, defence where this debate is going on... Defence Minister yesterday made announcements about the private sector's involvement in the defence sector," British High Commissioner to India Richard Stagg told reporters.

At present, the government allows 51 per cent FDI in single brand retail and 100 per cent in the cash-and-carry (wholesale) formats, while FDI in multi-brand retail is prohibited. In defence and insurance sectors, 26 per cent FDI is permitted.

The UK has strong expertise in areas like retail, infrastructure, energy, financial services and defence.

The visit is aimed at further identifying opportunities for British and Indian companies to work together to realise ambitious goals of economic growth in areas like infrastructure development, Stagg said.

Besides, Cable would chair the meeting of the US-India Joint Economic and Trade Committee (Jetco) with Commerce and Industry Minister Anand Sharma.

It was set up in 2005 to tackle trade and investment barriers on both sides and promote business links. The 6th Jetco meeting was held on 4 February last year in London.

Cable would also attend the launch of British India Infrastructure Group which would be co-chaired by Permanent Secretary of the Department for Business, Innovation and Skills Martin Donnelly and Finance Secretary Ashok Chawla.

"There are enormous opportunities available in India's infrastructure sector. British companies have expertise in the sector and can help in the infrastructure development of the country," Stagg said.

The government has planned to invest USD 1 trillion in the infrastructure sector during the XII Five-Year Plan (2012-2017).

Besides, Cable would hold meetings with Road and Transport Minister Kamal Nath and Minister for Corporate Affairs and Minority Affairs Salman Khurshid.

"Cable will also look at corporate governance which is very important particularly at a moment when we move towards more global standardisation... We see more opportunities for both countries to work more closely together in this regard," Stagg said.

During 2009-10, India-UK bilateral trade stood at USD 10.6 billion.


UK wants India to open retail, raise FDI limit in defence - The Economic Times

 

[Domain]

That is the most Sensitive sector of India.

There are over 12 Million Retailors in India, the highest in the world.

Over 98% in the Unorganized Sector.

 

[angeldemon_007]

UK wants India to open retail, raise FDI limit in defence

I don't think this is gonna happen.

 

[Ignited Mind]

I don't think this is gonna happen.

although it should.

 

[angeldemon_007]

although it should.

It would affect the life of many people.

 

[Ignited Mind]

It would affect the life of many people.

Only positively. It will put an end to the cartel of middlemen which has raised food items' prices beyond the reach of most Indians.

Just imagine. A bunch of lettuce which costs Rs. X to a farmer, costs 6-7X to the customer. It'll benefit the customer and the farmer. Can't say that about the middlemen though.

I'll welcome walmart with open arms anyday.

As for defence, Indian defence industry needs to take a quantum leap before it can compete with international OEM's and their products. That quantum leap can only come by dint of collaboration with international defence firms who have years of experience in developing cutting edge defence systems.

 

[JanjaWeed]

although it should.

....... as long as local interest is safeguarded by the govt. what happens tomorrow if tesco's wants to import banana from africa & south america.. one it's cheap, 2nd it's better in quality, & ignore the local ones or start a price war? what if they want to import the goods from china & sell it in their stores?? we must safe guard these things.

as far as financial sector is concerned, do not let them come anywhere near to it. whole of british financial institutions are intermingled with american ones. if america sneezes, Uk catches cold. Let's keep them away from it.

 

[Ignited Mind]

....... as long as local interest is safeguarded by the govt. what happens tomorrow if tesco's wants to import banana from africa & south america.. one it's cheap, 2nd it's better in quality, & ignore the local ones or start a price war? what if they want to import the goods from china & sell it in their stores?? we must safe guard these things.

Dude!

Opening retail to FDI doesn't necessarily mean importing from China or any other country. You can always have a regulatory body like you have IRDA in insurance and TRAI in telecom to specify the Do's and Dont's. Opening retail means to invite foreign corporations to come in and set up shop and supply chains over here in India, sourcing their products right from the farm into the supermarket, thereby eliminating the middlemen benefitting both the farmer and the consumer. You can anyways frame laws to prevent dumping by China or any other country for that matter.

Opening retail will eliminate the middlemen and simplify the supply chain currently clouded by the vested interests of these very middlemen.

as far as financial sector is concerned, do not let them come anywhere near to it. whole of british financial institutions are intermingled with american ones. if america sneezes, Uk catches cold. Let's keep them away from it.

Financial sector has already been opened to a certain limit. Many big international financial corporations already have operations in India although in statutory collaboration with Indian firms.

 

[true_indian]

^^ Exactly. We could always add a clause that 70% of the products should be sourced from with in the country. But opening up retail would definitely help the supply chain.

 

[JanjaWeed]

Dude!

Opening retail to FDI doesn't necessarily mean importing from China or any other country. You can always have a regulatory body like you have IRDA in insurance and TRAI in telecom to specify the Do's and Dont's. Opening retail means to invite foreign corporations to come in and set up shop and supply chains over here in India, sourcing their products right from the farm into the supermarket, thereby eliminating the middlemen benefitting both the farmer and the consumer. You can anyways frame laws to prevent dumping by China or any other country for that matter.

Opening retail will eliminate the middlemen and simplify the supply chain currently clouded by the vested interests of these very middlemen.



Financial sector has already been opened to a certain limit. Many big international financial corporations already have operations in India although in statutory collaboration with Indian firms.

my friend.. that's exactly what i'm saying right at the start. i just said in simple layman's terms "as long as local interest is safeguarded by the govt."

 

[Ignited Mind]

What I don't understand is why are MMS and Pranab da not doing anything when it comes to economic reforms.

Now there is no left in power to stall the process. Why the hell are things not moving then?

 

[DelhiDareDevil]

So England will buy clothes for cheap made in China, India and Bangladesh and then sell it in India and take all the profits back to England?

Nice! (sarcasm)

 

[JanjaWeed]

So England will buy clothes for cheap made in China, India and Bangladesh and then sell it in India and take all the profits back to England?

Nice! (sarcasm)

but when it comes to buying apples for their supermarkets in britain, they would rather pay ten times the price & buy it from spain to safeguard the interest of european farmers rather than import cheap & quality one's from india!!

 

[vamsi]

I am not sure abt the defense but we needs to free up retail to create supply chain infrastructure and control inflation. there momm and pop stores can't control inflation due to lack of storage facilities and hoard high demand goods. Whom are we saving consumers or small retailers....