Re: low price
by Varadarajan Ravindran on Sep 26, 2012 12:12 AM
Mr. Sayed Samad! You have correctly understood the economics underlining the issue. The lower price paid by consumer determines the ultimate prosperity of the nation.
What was the urgency of this FDI in retail of all other reforms. May be a coincidece, but two recent events needs to be checked carefully. Sahara groups entry into Retail business from nowhere and Supreme court verdict against Sahara to return the illegal deposits of Rs.20000 Crores back to public (which was being expected by everyone). It is well known fact that Sahara group is funded by corrupt politicians across party lines. Don't get surprised if Sahara enters into a JV with a foreign company (sometimes even a new company setup abroad) or is bought out by a company who wants to enter into retail business in India. The black money amassed by congress and other politicians will be routed through FDI into Sahara retail business which will be used to pay back the depositors of Sahara group, majority of whom are none other than these politicians or their cronies.
Re: Sahara groups entry into retail in August
by raju on Sep 24, 2012 04:37 PM
How will this affect coman man or the price of the product. Will they not compete with Walmart which is well established. Can you enlighten me. Honestly,Iam totally confussed.
1) if foreigners come to india in retail they will mend the trade associations' rules for their advantage either through bribery or influence.This will happen in large scale where as at present local retailers can't have that much influence. This will handover entire market to foreigners. 2)Once established and local retailers are gone they can make farmers grow only the crops which require seeds to be imported(this will destroy india's original crops) 3)we don't have effective laws to preserve our variety of crops.Even if there are laws,there is no strict enforcement . They are bribed to malfunction.
Re: disadvantages
by Bhagwan on Sep 24, 2012 03:16 PM
I visualize ..middleman is eliminated and is replaced directly by the big names in politics be it congress or Third front or BJP if at all it gets the power...kickback going directly to the Swiss bank account. Price increase of today will be replaced by quantum leap in price hikes for the cut going into the Swiss Banks.A Zimbabwe like inflation and the ultimate sufferer the aam aadmi who will feel ashamed of being called an aadmi due to miseries he will suffer from.
Only about Walmart - yes I donot care about Walmart. It is an extremely greedy company and I dont see any reason to believe in FDI looking at only Walmart. However we need foreign investments and FDI is required for many reason, not only Wal-mart. I am not worried about repeating the American Wal-mart experience in India because of two reasons
1. India is not US - US already had a developed back-end infrastrutcure so that this chain could go to all towns and set up itself. Admittedly this will hurt local business but the small shops here are going strong and cannot be eliminated easily. They would have significantly lost their businesses since already we have bigBazaars and spencers. Yet these small guys hold more than 95 pc of the retail market here. Where are the good roads in smaller towns so that you can drive to your nearest Wal-Mart and pick up goodies. That wont happen - at most you will have a Wal-Mart every big city, forget about a US style - one Wal-mart per village model. Wont happen - and local businesses still hold their forte. And furthermore - the smaller shops dont charge taxes, so we get cheap stuff from them. The poor class never go to malls or big retailers to buy. The whole argument that Wal-mart can have same impact as US is a lot of b_u_l_1.
2. Govt is overstating when they say they will invest in back-end. Why will they invest in Indian back-end? Govt already has infrastructure plans to do that. But farmers will have more options.
Why blaim Wal-Mart and our leaders! We all, particularly the educated and employed people, have soft corner for foreign goods. We should blame ourselves for this. If we the educated and employed people in all big metros and cities decide not to buy anything from them, I am sure nobody can force us to buy from them and they will be forced to shut their shops and leave the country. We the educated mass should take initiatives to convince others. Then can our small and medium retails/shop keeps live a peaceful life. Let us allow them to live. Otherwise the day is not far off when these around 50 million retails will be forced to commit suicide.
Only about Walmart - yes I donot care about Walmart. It is an extremely greedy company and I dont see any reason to believe in FDI looking at only Walmart. However we need foreign investments and FDI is required for many reason, not only Wal-mart. I am not worried about repeating the American Wal-mart experience in India because of two reasons
1. India is not US - US already had a developed back-end infrastrutcure so that this chain could go to all towns and set up itself. Admittedly this will hurt local business but the small shops here are going strong and cannot be eliminated easily. They would have significantly lost their businesses since already we have bigBazaars and spencers. Yet these small guys hold more than 95 pc of the retail market here. Where are the good roads in smaller towns so that you can drive to your nearest Wal-Mart and pick up goodies. That wont happen - at most you will have a Wal-Mart every big city, forget about a US style - one Wal-mart per village model. Wont happen - and local businesses still hold their forte. And furthermore - the smaller shops dont charge taxes, so we get cheap stuff from them. The poor class never go to malls or big retailers to buy. The whole argument that Wal-mart can have same impact as US is a lot of b_u_l_1.
2. Govt is overstating when they say they will invest in back-end. Why will they invest in Indian back-end? Govt already has infrastructure plans to do that. But farmers will have more options.
Well, when computers were introduced in 80s lot of hue and cry were raised, lakhs of people will be jobless but then what hapenned we all can see. Let Walmart/Likewise come many people in this forum will line up to buy goods from these stores. Our country is very poor and lives in small town and villages where these giants will not enter. So please do not loose ur sleep and let them come. India will prosper
