FDI in Retail

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Muppalla
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FDI in Retail

Postby Muppalla » 03 Dec 2011 19:31

Let us take a poll among BRFites regarding support for FDI in retail. There are several opinions running. A lot are vehemently opposed to opening up the retail to foreign investors. Some opinions are okay to open the retail sector with clauses such as 30% of the maal comes as manufactured/grown in India.

gakakkad
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Re: FDI in Retail

Postby gakakkad » 03 Dec 2011 20:17

I cast option 3....

Muppalla
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Re: FDI in Retail

Postby Muppalla » 03 Dec 2011 21:29

I have a fundmental question - Why India needs FDI in retail?

It it because Indian biggies does not have money? Or is it bacause Indian companies does not have supply chain experience. Is it really necessary to have FDI. About few years back when the government allowed big retail, Reliance fresh etc came into existence. Later there was a huge protests from all the "middlemen" type businesses as Reliance thought of sourcing directly from the farmer. In that pursit a substantial farm land was leased by Indian biggies to grow organic food etc.Later they rolled back that policy of allowing big Indian retail. Even going away from agri products, by means of liberal small scale manufacturing policies, some controlled imports to deal with Chine etc. the types of Shoppes, LifeStyle, BigBazar etc would give the same scale as like Walmart etc.

What is the big need for FDI in retail as though there is no scale of investment money in India. What does India get as a result?

It is not black and white regarding FDI in retail. I strongly think it is a distraction from 2G scam and the government was really successful.

member_20292
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Re: FDI in Retail

Postby member_20292 » 04 Dec 2011 00:19

WOW! does this even need to be discussed?

the govt should throw open all gates to fdi in all fields.

if I have 100 $ to start a business, where do you think I would invest?

in the US, where, i can hire h1B talent from all over the world, with smooth roads, electricity and internet.

or

in india, where people are so tribal and so close minded that they are debating whether they want good foreigners to put their money or not, and to what extent.


this is stupid. india and europe have to compete with the us. so we better make ourselves or prepare to make ourselves, as immigrant friendly, flexible and open as the US.


Complete systems (countries) have to compete with each other today as much as companies fight amongst themselves.

csaurabh
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Re: FDI in Retail

Postby csaurabh » 04 Dec 2011 08:14

madhavbhu, don't be so naive, look at the state of US/Europe economy today
Also, Wal-Mart has questionable tactics, it is right to be wary of them.

Neshant
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Re: FDI in Retail

Postby Neshant » 04 Dec 2011 08:39

Boatloads of Made in China stuff will be dumped on India with nothing going the other way.

chaanakya
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Re: FDI in Retail

Postby chaanakya » 04 Dec 2011 09:57

Muppalla wrote:

What is the big need for FDI in retail as though there is no scale of investment money in India. What does India get as a result?

It is not black and white regarding FDI in retail. I strongly think it is a distraction from 2G scam and the government was really successful.

Exactly my thoughts.

hariks
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Re: FDI in Retail

Postby hariks » 04 Dec 2011 11:59

I don't see the need for FDI in retail either. Supply chain management is not rocket science.
More retail avenues will emerge if there is money to be made (ie if there is demand). The walmart types
use questionable tactics and govt influence to push others out of the market, then they and may be one or two
more will control whole retail system. After that the producers (say farmers, small industries) will be squeezed by
tough negotiations since they have nowhere else to go. Small to medium shops lose business, producers lose profit
and only the big chains will make money. Add to that the dumping of surplus chinese stuff and who knows what else.

Supply chain management is not rocket science. We have enough management graduates and Marwadis and Gujrathis
(and many more..) have figured it out without the help of a management degree. At least now there is enough capital
in India to manage retail without external help. When the developed economies are crashing these big chains are looking
for new hunting grounds and let us not fall prey to their tactics.

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Re: FDI in Retail

Postby anmol » 04 Dec 2011 13:35

The third option "Allow it with 30% goods sourced locally" is NOT POSSIBLE, in fact a foreigner described it as illegal in World Trade under WTO agreements.

WTO: Principles of the trading system
Trade without discrimination back to top

1. Most-favoured-nation (MFN): treating other people equally

Under the WTO agreements, countries cannot normally discriminate between their trading partners. Grant someone a special favour (such as a lower customs duty rate for one of their products) and you have to do the same for all other WTO members.

This principle is known as most-favoured-nation (MFN) treatment (see box). It is so important that it is the first article of the General Agreement on Tariffs and Trade (GATT), which governs trade in goods. MFN is also a priority in the General Agreement on Trade in Services (GATS) (Article 2) and the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) (Article 4), although in each agreement the principle is handled slightly differently. Together, those three agreements cover all three main areas of trade handled by the WTO.

Some exceptions are allowed. For example, countries can set up a free trade agreement that applies only to goods traded within the group — discriminating against goods from outside. Or they can give developing countries special access to their markets. Or a country can raise barriers against products that are considered to be traded unfairly from specific countries. And in services, countries are allowed, in limited circumstances, to discriminate. But the agreements only permit these exceptions under strict conditions. In general, MFN means that every time a country lowers a trade barrier or opens up a market, it has to do so for the same goods or services from all its trading partners — whether rich or poor, weak or strong.

2. National treatment: Treating foreigners and locals equally

Imported and locally-produced goods should be treated equally — at least after the foreign goods have entered the market. The same should apply to foreign and domestic services, and to foreign and local trademarks, copyrights and patents.This principle of “national treatment” (giving others the same treatment as one’s own nationals) is also found in all the three main WTO agreements (Article 3 of GATT, Article 17 of GATS and Article 3 of TRIPS), although once again the principle is handled slightly differently in each of these.

National treatment only applies once a product, service or item of intellectual property has entered the market. Therefore, charging customs duty on an import is not a violation of national treatment even if locally-produced products are not charged an equivalent tax.

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Re: FDI in Retail

Postby Arjun » 04 Dec 2011 14:45

Can't see why FDI in retail should be a priority right now...Investment is not the big bottleneck at this point.

Penetration of organized retail in India is somewhere in the 5% range today. Let this first go up to 15% based on expansion of local players (such as Tata, Reliance, Big Bazaar) - and at that point the overseas players can be allowed in. In order to move things along - maybe the govt. could say 15% organized retail penetration OR end of 2015 - whichever comes earlier.

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Re: FDI in Retail

Postby harbans » 04 Dec 2011 16:55

JAMMU: A farmers body today batted strongly for FDI in the retail sector, saying it will help create better marketing opportunities for agricultural products in the country.

"Marketing was the biggest problem confronted by farmers in the country leading to phenomena like crop holidays and farmers suicides. FDI will help in creating better marketing prospects for their products and better income opportunities for them," National Advisor Consortium of Indian Farmers Associations (CIFA) Thakur Randhir Singh told reporters here.


FDI will help Farmers

KOLKATA/NEW DELHI: Large farm lobbies are backing the government's decision to allow foreign supermarkets to set up shop in the country, saying it will shorten the supply chain and get growers a larger share of the final selling price.

Most farmers, however, want the government to go a step further and make it mandatory for retailers to buy 75% of their produce directly from farmers, bypassing the restrictive 'mandi' auction system.

"Traders and middlemen are sucking our blood. But no political party is talking about our interest because we are not organised like labour unions, nor have deep pockets like traders," said P Chengal Reddy, secretary-general of Consortium of Indian Farmers Associations ( CIFA).

"India has 600 million farmers, 1,200 million consumers and 5 million traders. Both farmers and consumers are benefited by FDI in retail," Reddy added.


Farmers Bodies puts Weight behind FDI

Christopher Sidor
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Re: FDI in Retail

Postby Christopher Sidor » 04 Dec 2011 17:57

HT a few days ran a simple headline. 600 million farmers. 5-10 million traders. All congress has to do is make sure that 600 millio farmers understand that FDI in retail will benefit them. Game over. We can expect UPA-III.

And it is not bad too. In the recent past tomatoes touches Rs 40 per kg in my home town. During the same time frame NDTV ran an interesting shown. Rs 10 were being paid to the farmer who grew the tomatoes. We were paying Rs 40. In other words Rs 30 was being consumed by intermediaries. If this Retail FDI is structured properly, it will see a growth of cold storage facilities and a decrease in wastage's.

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Re: FDI in Retail

Postby Arjun » 04 Dec 2011 18:06

Arjun wrote:Can't see why FDI in retail should be a priority right now...Investment is not the big bottleneck at this point.

Penetration of organized retail in India is somewhere in the 5% range today. Let this first go up to 15% based on expansion of local players (such as Tata, Reliance, Big Bazaar) - and at that point the overseas players can be allowed in. In order to move things along - maybe the govt. could say 15% organized retail penetration OR end of 2015 - whichever comes earlier.

Based on some subsequent research...It looks like the ambitious 'farm to fork' business models that would have revolutionized the grocery supply chain in India have largely been given up on by Ambani, Mittal and other local players who had made grand plans a few years back. Also, Big Bazaar the largest retailer in the country is actively supporting the FDI scheme to reduce the debt burden on the firm. All pointers to a cash crunch in terms of further investment by locals except for the most deep-pocketed ones.

Given these factors - I guess allowing FDI does make sense now, as long as the players do come in with investment required to change the back-end rural supply chain infrastructure.

There should be enough caveats enforced..such as restricting the degree of sourcing from overseas, entry only in top X cities, investment flowing to back-end rural infrastructure etc.

Muppalla
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Re: FDI in Retail

Postby Muppalla » 04 Dec 2011 19:54

Arjun wrote:Based on some subsequent research...It looks like the ambitious 'farm to fork' business models that would have revolutionized the grocery supply chain in India have largely been given up on by Ambani, Mittal and other local players who had made grand plans a few years back. Also, Big Bazaar the largest retailer in the country is actively supporting the FDI scheme to reduce the debt burden on the firm. All pointers to a cash crunch in terms of further investment by locals except for the most deep-pocketed ones.


After opening the retail to big Indian companies during UPA-1 there was a huge huge protest from the middlemen companies across India. Anti-Reliance Fresh etc. At that time they were restricted to just few cities and were not allowed to expand. Without completing that from where they started, the government is now on to "let us get walmart"

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Re: FDI in Retail

Postby sanjeevpunj » 04 Dec 2011 20:06

Option 3 is perfect.Best of both worlds.India should redefine WTO agreement by breaking it.

Muppalla
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Re: FDI in Retail

Postby Muppalla » 04 Dec 2011 20:07

anmol wrote:The third option "Allow it with 30% goods sourced locally" is NOT POSSIBLE, in fact a foreigner described it as illegal in World Trade under WTO agreements.


Did India sign WTO agreements?

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Re: FDI in Retail

Postby csaurabh » 04 Dec 2011 20:11

Christopher Sidor wrote:HT a few days ran a simple headline. 600 million farmers. 5-10 million traders. All congress has to do is make sure that 600 millio farmers understand that FDI in retail will benefit them. Game over. We can expect UPA-III.

And it is not bad too. In the recent past tomatoes touches Rs 40 per kg in my home town. During the same time frame NDTV ran an interesting shown. Rs 10 were being paid to the farmer who grew the tomatoes. We were paying Rs 40. In other words Rs 30 was being consumed by intermediaries. If this Retail FDI is structured properly, it will see a growth of cold storage facilities and a decrease in wastage's.


I don't understand this logic. Do we say - look a factory worker only gets Rs 10 for making a tubelight, but when it reaches my home it costs Rs 40. There are transport charges, vendors charging a cut, sales/octroi taxes etc. It is only natural. If you don't like it you can always take a trip to the villages and buy tomatoes at Rs 10.

Walmart has actually squeezed out the small farmers everywhere it has gone, it is highly doubtful that small farmers will benefit from it.

Congi media is in full propaganda mode. Don't pay any attention to them.

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Re: FDI in Retail

Postby gakakkad » 04 Dec 2011 22:37

>>The third option "Allow it with 30% goods sourced locally" is NOT POSSIBLE, in fact a foreigner described it as illegal in World Trade under WTO agreements.


what ll they do if India breaks the law , Do us in jail ? :mrgreen: like they did to amreeka bahadur after flouting the norms of the Kyoto protocol ?

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Re: FDI in Retail

Postby Upendra » 04 Dec 2011 22:40

mahadevbhu wrote:WOW! does this even need to be discussed?


Why not?

mahadevbhu wrote:the govt should throw open all gates to fdi in all fields.


and say goodbye to economic freedom

mahadevbhu wrote:in the US, where, i can hire h1B talent from all over the world, with smooth roads, electricity and internet.
or
in india, where people are so tribal and so close minded that they are debating whether they want good foreigners to put their money or not, and to what extent.

What would you call the caps on H1B visas? tribal mindedness? protectionism?

good foreigners seeking to invest in India are looking for profits at any costs, that may or may not lead to undesirable social outcomes. Are we prepared for those changes?

Upendra
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Re: FDI in Retail

Postby Upendra » 04 Dec 2011 23:00

gakakkad wrote:>>The third option "Allow it with 30% goods sourced locally" is NOT POSSIBLE, in fact a foreigner described it as illegal in World Trade under WTO agreements.


what ll they do if India breaks the law , Do us in jail ? :mrgreen: like they did to amreeka bahadur after flouting the norms of the Kyoto protocol ?


Kyoto protocol was not part of WTO agreement.
30% goods sourced locally line was used by manmohan to hoodwink his cabinet, it is never meant to be implemented. Its better not to allow FDI in retail sector.

Upendra
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Re: FDI in Retail

Postby Upendra » 04 Dec 2011 23:15

harbans wrote:
JAMMU: A farmers body today batted strongly for FDI in the retail sector, saying it will help create better marketing opportunities for agricultural products in the country.

"Marketing was the biggest problem confronted by farmers in the country leading to phenomena like crop holidays and farmers suicides. FDI will help in creating better marketing prospects for their products and better income opportunities for them," National Advisor Consortium of Indian Farmers Associations (CIFA) Thakur Randhir Singh told reporters here.


FDI will help Farmers

You choose to miss this part which exposes the real reason for his support of FDI
Singh, who is also UPA ally NCP's J & K unit chief


One of the major supporters of FDI is NCP chief Sharad Pawar. That should make it clear why this farmer's body is supporting FDI.

member_20292
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Re: FDI in Retail

Postby member_20292 » 04 Dec 2011 23:55

india has to be better than the us.

but.

wre are debating a qn with an obvious answer, while the us:

http://www.economist.com/node/21541054

harbans
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Re: FDI in Retail

Postby harbans » 05 Dec 2011 05:39

You choose to miss this part which exposes the real reason for his support of FDI


No i don't choose. I posted the link and an excerpt. My point is simple. I had these arguments 25 years ago. Idiots wanted to perpetuate the License Raj fearing India will come to an end with delicensing and reform. I have no patience with that thinking anymore.

They will drag India down and have done so. Then offer no going forward or when things fail a blank stare. I know there are plenty here too on this board. Major point is treason..by stalling reform what are you achieving? Whose goals? China's? By slowing India's Growth down whose goal one is not achieving India's goals.

I would really like to know the Moral Compass of those that oppose these very basic reforms in India. What sort of India do they want.
Last edited by harbans on 05 Dec 2011 14:50, edited 1 time in total.

wig
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Re: FDI in Retail

Postby wig » 05 Dec 2011 10:59

imvho fdi should be allowed into retail.
any business investing in retail will have to invest very large sums of money to set up the end customer sale point. in addition to that considerable investments will be needed jus tot ensure that supply side logistic chains are maintained. The incoming companies will need to invest stupenous sums in cold warehousing at the procurement centers. then they will also invest in cold chain transportation to sale points. all in all this will lead to development of tremendous infrastructure. even more important is that many people will gain employment and over a period of time develop necessary skill sets to manage the infrastructure, cold chains, sale counters etcetra.
growers in the villages will also get incentivised by such chains since as i understand it considerable buying of fresh food items will take place at the village level itself. in order to ensure quality i opine that the fdi company will invest in personnel who will provide the grower with scientific inputs to ensure a healthy crop.
the entrepreneur who invests all this will also pay state and central taxes, that will enrich the exchequer.

as an aside it bears mention that for the past many years the GOI has come out with numerous incentives/exemptions for setting up cold storage units. but even today the cold storage capacity is woefully inadequate. on top of this transporting fresh fruits vegetables in a manner that the goods reach the consumer in time, is a difficult propostion given the condition of roads and traffic we possess. more often than not fresh fruits and vegetables get spoiled by the time they reach the market.
in certain cases questionable practises if not outright dangerous practises like dipping fish in formalin are followed so that the food item retains its flavour.
what i think is required is proper regulators. but then again there is no dearth of regulators now a days. every food, medicine, white good, core industry or whatever else is checked by legal meterology personnel, health department personnel or some other govt department and only then can in enter the marketplace.
still you can easily sell and buy items which are counterfeit and a danger to the user. this is the case in every possible field of goods.
curbing this trend in my opinion is what is more important.
while discussing FDI in retail we underestimate the intelligence of the customer. if cheating can be curbed (strong regulators -which sadly is lacking) the customer is perfectly competent to decide what is best for itself and family.

Upendra
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Re: FDI in Retail

Postby Upendra » 05 Dec 2011 13:19

mahadevbhu wrote:india has to be better than the us.

but.

wre are debating a qn with an obvious answer, while the us:

http://www.economist.com/node/21541054


So you want people to pay money and migrate to america? :roll: is that your obvious answer?

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Re: FDI in Retail

Postby Upendra » 05 Dec 2011 13:22

harbans wrote:No i don't choose. I posted the link and an excerpt.


You choose excerpts which supported your views and ignored those which exposed the real mouth who was doing the talking in guise of indian famers group.

harbans wrote:My point is simple. I had these arguments 25 years ago. Idiots wanted to perpetuate the License Raj fearing India will come to an end with delicensing and reform. I have no patience with that thinking anymore.


License Raj was instituted by congress to perputate its mafia style rule by keeping businesses at the mercy of the party. FDI in retail is different matter altogether.

harbans wrote:Idiots that will drag India down and have done so.

Precisely the same people who are now acting as cheerleaders for FDI in retail without thinking about the consequences to other sections of society.

harbans wrote:Major point is treason..by stalling reform what are you achieving?

Those inviting unwanted external influence in India's economic structure are the one's who are traitors. Its sheer lunacy to label this regressive move as reform. If you want real reform how about giving public an jan lokpal.

harbans wrote:I would really like to know the Moral Compass of those that oppose these very basic reforms in India. They have none. No backbone. Zilch.

People who failed their history classes are now talking about moral compass and backbone. Remember those who gave Captain Hawkins firmans to setup factories later cried tears of blood and were slaughtered like animals. Those who have the real backbone will support the nation and weaker sections of society.

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Re: FDI in Retail

Postby Upendra » 05 Dec 2011 13:24


partha
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Re: FDI in Retail

Postby partha » 05 Dec 2011 13:29



So:

Did UPA consult the IB after announcing FDI decision? If not, why did they announce it?

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Re: FDI in Retail

Postby abhischekcc » 05 Dec 2011 17:36

They must have thought that Mamta's attack on Maoists destabilized the movement enough to try this stunt. Of course, that puts Mamta's attack on the Maoists in a completely different light, as well as Mamta's demand for Rs 20,000 Cr :) - pound of flesh demand.

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Re: FDI in Retail

Postby SSridhar » 05 Dec 2011 17:38

hariks wrote:Supply chain management is not rocket science. We have enough management graduates and Marwadis and Gujrathis
(and many more..) have figured it out without the help of a management degree. At least now there is enough capital
in India to manage retail without external help.

hariks, I am for FDI. However, if what you say above is true, which I am sure it is, what is stopping us from doing all these things ?

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Re: FDI in Retail

Postby Supratik » 05 Dec 2011 18:23

SSridhar wrote:
hariks wrote:Supply chain management is not rocket science. We have enough management graduates and Marwadis and Gujrathis
(and many more..) have figured it out without the help of a management degree. At least now there is enough capital
in India to manage retail without external help.

hariks, I am for FDI. However, if what you say above is true, which I am sure it is, what is stopping us from doing all these things ?



Will not vote as there is no option for "FDI with changes". The FDI should be restricted to Metro
cities first and the restrictions on domestic retail should be lifted. There is some problem in the
organized retail business with Indian retailers as they have neither been able to scale up nor have
they been able to organize the logistics. Apparently, Reliance Fresh is buying most of the produce
from the same Mandi.

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Re: FDI in Retail

Postby uddu » 05 Dec 2011 19:31

30 percent is not enough. If all the materials will be sourced from India, then FDI can be allowed. I vote for not allowing FDI.

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Re: FDI in Retail

Postby harbans » 05 Dec 2011 20:21

Those inviting unwanted external influence in India's economic structure are the one's who are traitors.


By that yard stick North Korea must be the most patriotic nation on the planet.

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Re: FDI in Retail

Postby Upendra » 05 Dec 2011 20:34

harbans wrote:
Those inviting unwanted external influence in India's economic structure are the one's who are traitors.


By that yard stick North Korea must be the most patriotic nation on the planet.


North Korean economy is dependent on china and south korean largesse. By that yard stick North Korea is the most unpatriotic nation on the planet.
Last edited by Upendra on 05 Dec 2011 20:44, edited 1 time in total.

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Re: FDI in Retail

Postby Upendra » 05 Dec 2011 20:43

This should be an eye opener for those batting for FDI in multi-retail

SEZ rules tweaked to allow real estate stakes for foreigners

It was quietly done, without any publicity. A group of senior bureaucrats, presumably at the behest of their political masters, recently chose to reinterpret rules governing the sale of assets in Special Economic Zones (SEZs) in a manner which will greatly benefit foreign investors by enabling them to acquire real estate.

While the recent decision to allow FDI in retail will allow foreign parties to own urban real estate as part of the business, the SEZ decision will enable further transfers of developed land to foreign parties — in violation of the laws of the land in letter and spirit. In the process, it will also bail out Indian real estate firms like DLF which are heavily in debt.

This reinterpretation of rules relating to the acquisition of land and property in SEZs by foreign firms is being perceived as a major policy turnaround that has taken place through the backdoor. It is tantamount to a significant policy change that has been done through executive fiat without the approval of either the Union Cabinet or an Empowered Group of Ministers (eGoM), leave alone the Parliament of India.

After the law governing the establishment of SEZs was enacted in 2005, the government’s policies were criticised on the ground that enterprises set up in these zones with generous tax concessions would not really spur exports but would degenerate into real estate rackets. The government responded by stating that adequate safeguards will be put in place to prevent this from taking place.

However, six years later, the fear that assets in SEZ would be freely traded primarily to benefit foreign companies and not significantly enhance the country’s exports seem to be coming true.

The rules have so far been “bent” for three companies. Two of these have already found foreign buyers for their SEZ assets. There is now an apprehension that the floodgates have been opened for trading in SEZ land and properties promoted by Indians in a way that would largely help multinational concerns.


The government claims that the decision to allow foreign firms to acquire built-up assets in units in SEZs will enable their promoters to “consolidate” their businesses. Critics of the government, on the other hand, believe that the permission granted to the promoters of three companies in SEZs to dispose of their equity stakes to other corporate entities, including foreign firms, will have far-reaching implications by facilitating the trading in assets of companies in SEZs.

The assets of the DLF group’s SEZ in Pune are going to be soon owned by the US-based investment advisory group Blackstone, while control over the Aachvis SEZ in Noida near Delhi is expected to move from the Delhi-based upmarket real estate developer, The 3C Company, to a foreign firm.


DLF is known to be benami company of robert vadra, SIL of sonia gandhi. This is the same dirty game that congress intends to play in multi-retail sector, now it is being sold as reform, later rules will be secretly changed to favour benami companies of sonia and her family. Farmers and SME's can go to hell, its the swiss bank accounts of sonia that counts in this mad rush to destroy indian economy.

Christopher Sidor
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Re: FDI in Retail

Postby Christopher Sidor » 05 Dec 2011 20:49

csaurabh wrote:
Christopher Sidor wrote:HT a few days ran a simple headline. 600 million farmers. 5-10 million traders. All congress has to do is make sure that 600 millio farmers understand that FDI in retail will benefit them. Game over. We can expect UPA-III.

And it is not bad too. In the recent past tomatoes touches Rs 40 per kg in my home town. During the same time frame NDTV ran an interesting shown. Rs 10 were being paid to the farmer who grew the tomatoes. We were paying Rs 40. In other words Rs 30 was being consumed by intermediaries. If this Retail FDI is structured properly, it will see a growth of cold storage facilities and a decrease in wastage's.


I don't understand this logic. Do we say - look a factory worker only gets Rs 10 for making a tubelight, but when it reaches my home it costs Rs 40. There are transport charges, vendors charging a cut, sales/octroi taxes etc. It is only natural. If you don't like it you can always take a trip to the villages and buy tomatoes at Rs 10.

Walmart has actually squeezed out the small farmers everywhere it has gone, it is highly doubtful that small farmers will benefit from it.

Congi media is in full propaganda mode. Don't pay any attention to them.

I would love to go and buy the tomatoes at Rs 10. However there is no village nearby my place and my schedule does not allow me. Ditto for my spouse. We are after all DIDK (Double Income Double Kids) family.

It these cuts which have to be reduced so as to bring down the prices. How much of our food gets rotten, because these small kirana shops are unable to store the same vegetables in cold storage? I have seen many cases of Mother dairy booths and Amul Booths shutting down their refrigerators to save electricity costs. If they had economy of size then they would need not do so.

Can you share with us the basis of the claim, "Walmart has actually squeezed out the small farmers everywhere it has gone"

Upendra
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Re: FDI in Retail

Postby Upendra » 05 Dec 2011 21:03

Christopher Sidor wrote:Can you share with us the basis of the claim, "Walmart has actually squeezed out the small farmers everywhere it has gone"


http://www.rediff.com/business/slide-sh ... 111130.htm

Even in Latin American countries, including Brazil, Argentina, Uruguay and Colombia, where supermarkets, most of them owned by multinational giants, now control 65 to 95 per cent of supermarket sales, farmers have been forced to quit agriculture.

harbans
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Re: FDI in Retail

Postby harbans » 05 Dec 2011 21:04

North Korean economy is dependent on china and south korean largesse.


Any economy that refuses to integrate into the global system will find itself in doldrums at some point of time. Exposing our industries to competition is the best possible method to enable them to survive without handouts. The same goes into any Industry. Provide them subsidy and sanctuary and they go sluggish. I have absolutely no doubt that Indian manufacturing will rise up and compete, so too will agro based Industry. Presently the trade surplus with China is massive. Most of it is imports into small scale retail. Toys to shoes an entire gamut of products imported from China is through the unorganized retail sector. By bringing all these under the organized scanner it is easier to study and provide local Industries that will replace these imports. But it is very important that Industries be allowed to develop their strengths. Competition alone ensures that.

gakakkad
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Re: FDI in Retail

Postby gakakkad » 05 Dec 2011 21:05

from riding the elephant

http://ridingtheelephant.wordpress.com/ ... al-crisis/



The real fears however should stem from Wal-Mart’s appalling international record of treating suppliers harshly and employees shabbily. The latest opposition to its worldwide ambitions came in South Africa a few weeks ago, and there are frequent campaigns elsewhere against its expansion. Tesco is only a few shades better and its expansion around the UK is constantly opposed.
Any idea that Wal-Mart will treat farmers enormously better than the often crooked and corrupt traders and middlemen that they have to deal with currently is far-fetched, as are government claims that the advent of foreign investment will rapidly create jobs and bring down prices, helping to curb India’s currently high rate of inflation.


gakakkad
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Re: FDI in Retail

Postby gakakkad » 05 Dec 2011 21:07

mahadevbhu wrote:india has to be better than the us.

but.

wre are debating a qn with an obvious answer, while the us:

http://www.economist.com/node/21541054



Well , their invest 1 million and get a green card scheme failed miserably . Which retiree would want to live in the US ? This scheme would fail badly too.

Yes , India can do better than the US. We can break a more international protocols and agreements than they have for our benefit .


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