Dismiss Notice
Welcome to IDF- Indian Defence Forum , register for free to join this friendly community of defence enthusiastic from around the world. Make your opinion heard and appreciated.

Why FDI in retail may be bad- My ground report, Grond

Discussion in 'National Politics' started by grond, Dec 9, 2012.

Thread Status:
Not open for further replies.
  1. grond

    grond Captain SENIOR MEMBER

    Joined:
    Sep 7, 2012
    Messages:
    1,083
    Likes Received:
    339
    We may be too young to remember but older people like VSTOl Jockey may remember a time when Indian indigenous soft drinks like gold spot and thumbs up (before it was acquired) ruled the roost. This, of course, was before 1991 when I wasn't born. But I do know the inside story of how it went down. When Coco-cola set up distribution points in major city. They promised ordinary shop-keepers that for every load(100 bottles) of empty bottles they give of Indian soda they will give 20 loads of full coco cola bottles.
    I'm not here to argue on what sort of trade practice this is , but the results are there to see. Younger members may not even heard of something called as goldspot and will look incredulously when we say thumbs up was an Indian Company.
    In Vanagaram outer Chennai A new building is coming up at a pace so rapid and across such a huge swathe of land that you may think it is a new office complex. But it is actually a Walmart store. Go to any shop owner or small scale producer nearby and he'll have a photo ID from Walmart saying that he is a certified Walmart supplier (he gets 150% of retail cost for any product he sells). It might sound like a sweet deal but the poor dealer doesn't know as Walmart gets bigger they will acquire all his suppliers and strand him without a job as they are able to sell for less. A case has been lodged in Chennai High court by the Nadar Sangam, saying that it is illegal that Walmart can do marketing activities in Tamil Nadu as they have not entered the state.
    As a layman this instantly started raising a stink, How could a still illegal company start building on 3 acres of land (CDMA says that license for the building can be got after completion,but before start of buisness activities) If they are not sure whether they'll be allowed to do business. And how could the government be still as they do marketing and start gathering supply chains.And biggest of all how can they start building when FDI is still being debated in the parliament.
    This is the story in Chennai, think of the other places where FDI have been passed.
     
    1 person likes this.
  2. vstol jockey

    vstol jockey Colonel MILITARY STRATEGIST

    Joined:
    Mar 15, 2011
    Messages:
    13,790
    Likes Received:
    15,448
    Country Flag:
    India
    I had supported the retail FDI as it was supposed to have been left to states to implement it. I stand corrected now. The bilateral investment treaties with over 82 countries say that we can't give a discriminatory treatment to these FDI when compared to Indian businesses. This means that all this talk of states having a final say is wrong. Congress govt has gone against the federal structure of Indian constitution by creating a situation wherein the states have no choice now and they cannot stop Walmart anywhere in India. It has been the biggest scandal and falsehood fed to Indian people.
     
    1 person likes this.
  3. grond

    grond Captain SENIOR MEMBER

    Joined:
    Sep 7, 2012
    Messages:
    1,083
    Likes Received:
    339
    VSTOL Sir, Welcome to capitalism...
     
  4. Sinchan

    Sinchan Lieutenant FULL MEMBER

    Joined:
    Jul 25, 2012
    Messages:
    666
    Likes Received:
    151
    A stupid report.If u r making a report then u should show us both sides(good and bad). Wallmart is not a monster, who will swallow the whole country. A farmer deserve the best price and consumer deserve the best quality at lowest price.don't forget about shopping malls which r similler to retaill stores and FDI is needed for our economy.FDI is coming with a lot of restrictions.
     
  5. vstol jockey

    vstol jockey Colonel MILITARY STRATEGIST

    Joined:
    Mar 15, 2011
    Messages:
    13,790
    Likes Received:
    15,448
    Country Flag:
    India
    I watched the whole debate in LS & RS. The claims by UPA that retail FDI will create four million jobs in India is a blatant lie. They have just 1.5 million employees all over the world with aturn over of nearly 500billion. In India they can enter only 53 cities, how can they create such large jobs in India??
    The so called backward and forward integration cited for agriculture will still need to be done by Indians and these retail giants will buy from these new cold storage chains. A very big story is doing rounds in our biz world. The story is that a large number of congressies hold a large stake in present retails chains of Bharti, reliance, Spencer, Birlas etc and they have been loosing money. The game is to allow these people to sell their stake to boost their share price and market valuation so that these congressies can recover huge amount of money. In short the nation has been sold just like KG basin, 2G & Coalgate.
     
  6. grond

    grond Captain SENIOR MEMBER

    Joined:
    Sep 7, 2012
    Messages:
    1,083
    Likes Received:
    339
    Very true , friend . I supported FDI till yesterday so I can safely argue for why its good.
    large corporations like Walmart eliminate the usual supply route of middlemen, whereas retail malls still use middlemen as they are more convenient to do business with. So when FDI comes even Indian retailers will be forced to ditch middlemen thereby ensuring smooth and best rates for the customer.
    Eventually it trickles down to something called as ease of business index which when improved will encourage smaller foreign companies to invest in India.
    All this are the advantages of FDI.
    Lets see what has happned meanwhile, middlemen have lost jobs and smaller Indian companies find it hard to keep up because of all the foreign companies that come here. Now you may argue that we dont need middlemen but it gets more complicated than that , a middleman is not a single man but a network of dealers.
    My mother was a director of INDSETI a project by indian bank to help rural farmers and poor. She found that a farmer most likely sells his product to a family relation or acquantaince who passes it on up the network. With this entire chain abolished we can see that it would invariably lead to great confusion for farmers as they suddenly don't know whom to sell to.
     
  7. vstol jockey

    vstol jockey Colonel MILITARY STRATEGIST

    Joined:
    Mar 15, 2011
    Messages:
    13,790
    Likes Received:
    15,448
    Country Flag:
    India
    The marginal farmer will face immense competition from large farmers who will break the chain and you will see a large scale drop in agricultural production and a large increase in suicides by marginal farmers.
     
  8. grond

    grond Captain SENIOR MEMBER

    Joined:
    Sep 7, 2012
    Messages:
    1,083
    Likes Received:
    339
    Yes, but I didn't want to go that far...And thank for pointing out cold supply chains... They'll most certainly raise competition with poorer farmers... And not to mention in an average retail shop maximum of workers is 10-15 while in larger stores they can go up to 30-40 ... By keeping in mind that their work is not as permanent as , say IT, when Walmart suffers a loss they'll invariably be axed worsening the problem...
    Don't get me wrong I supported FDi in retail too but after seeing the ground reality I'm happier now to be living in Tamil Nadu...
     
  9. Sinchan

    Sinchan Lieutenant FULL MEMBER

    Joined:
    Jul 25, 2012
    Messages:
    666
    Likes Received:
    151
    Being a farmor in india mean 'poor' so no large farmers will break the chain, and to feed more than 1 billion people u need a lot of food.increse in Suicide.??? So now our farmers r living a royal life.???
     
  10. vstol jockey

    vstol jockey Colonel MILITARY STRATEGIST

    Joined:
    Mar 15, 2011
    Messages:
    13,790
    Likes Received:
    15,448
    Country Flag:
    India
    Sinchan, I had decided not to respond to you but now making an exception. I come from an agricultural family with large land holdings in Haryana. I know how we regulate price as we have a much large produce bcoz of volumes and lower cost due to highly mechanised farming. Plus we are well educated and use modern tech to boost production. The poor farmers around my land do not have such facilities. Every crop I see them coming to me and selling their land to me to turn farm labourer.
    I am not responsible for their plight but the GOI policies are. pls do a survey and you will know that in India large farmers like me, buy off all the produce for a given price and than we force govt to increase procurement price to benefit from this situation.
    Poora ka poora khet bikta hai fasal kay saath. Aapko pata kya hai bhai.
     
  11. Picard

    Picard Lt. Colonel RESEARCHER

    Joined:
    Feb 4, 2012
    Messages:
    5,865
    Likes Received:
    3,024
    Welcome to Corporatist World Order. Back in 1990s, when people in US succeeded in making states pass legislations against products made by slave workforce being sold in the US, federal government acted on behalf of corporations and outlawed these legislations.
     
  12. Sinchan

    Sinchan Lieutenant FULL MEMBER

    Joined:
    Jul 25, 2012
    Messages:
    666
    Likes Received:
    151
    U have been responding me in every thread.actualy i decided to don't response u after ur immature posts in that thread and that's why after that m not [quoteing] ur posts.
     
  13. vstol jockey

    vstol jockey Colonel MILITARY STRATEGIST

    Joined:
    Mar 15, 2011
    Messages:
    13,790
    Likes Received:
    15,448
    Country Flag:
    India
    Agricuture is also a biz. It has to be looked from that perspective. I am an educated farmer and due to my success in biz have grown and diverted to other biz. But I know what is wrong in India.
    Agritural income is not taxed in India. So all the money I earn is straight into my pockets and I get large amount of subsidies without having to pay for them. every year I increase the size and holding of my agricutural lands due to the money earned. I have the capacity to insure my crops and also ensure three crops a year due to better seeds and better irrigation facility which I have created in my lands.
    I do not sell my produce when the crop is harvested as I have storage capability but choose time and place to sell it to make a bigger killing and why shud I not? Till date I have never sold to GOI as my produce is of much higher quality. I am waiting to increase my land holding to a point from where I can start food processing chain of my own.
     
  14. vstol jockey

    vstol jockey Colonel MILITARY STRATEGIST

    Joined:
    Mar 15, 2011
    Messages:
    13,790
    Likes Received:
    15,448
    Country Flag:
    India
    I responded to the responses to your posts. I am neither a castist nor a communal man. If anyone calls me so, it hurts me. I made my thinking very clear to you and everyone on this site yesterday. India is for Indians only, irrespective of their religion. Those who want to run this nation on the basis of religion shud better migrate to Pakistan as that is a nation based on religion whether muslims or hindus.
     
    1 person likes this.
  15. Sinchan

    Sinchan Lieutenant FULL MEMBER

    Joined:
    Jul 25, 2012
    Messages:
    666
    Likes Received:
    151
    That's what i've been trying to convince 5 people in this forum for last 4 months and yes after that thread, u'v been giving right and PROFESSIONAL comments.
     
Thread Status:
Not open for further replies.

Share This Page