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

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

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  1. brahmos_ii

    brahmos_ii Major SENIOR MEMBER

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    One small question for all the readers.
    What is the true meaning of indigenous? When so called father of our grate started one great movement known as Quit India and after just 2 generations after him is fully in love with foreign products,
    Which company is producing our tooth paste, its P & G.
    How many of us use our Indian product Dabur.
    How many of us use Raymond’s shirt instead of string/stori and so on...
    Like this list goes on...
    As if gov is tell by bringing wallmart into India create 4L jobs, then why there is unemployment from where it is coming...
    Lastly use commonsense if we bring them here then they will directly purchase product from producer and that will remove the distributor system and by this how many is going to lose there job...

    All the best to bringing a black cloud onto our self...
     
  2. ricky123

    ricky123 Captain FULL MEMBER

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    first of all i am against fdi in multi brand retail .but i have my own reasons for it
    first let me tell u what good can come out of it

    1:better distribution networks
    2:better storage
    3:farmers get paid more
    4:may create some jobs

    these r the only plus points i can think of

    now let me tell u the negatives

    even if walmart opens 4000 shops in india it will not create 4 mil jobs (40lacs)
    walmart even if creates better storage space .u have to see it will have monopoly over our food supply.and they can jackup the prices whenever they want.its like puttin all ur eggs in one basket
    fdi will kill the domestic markets ...

    now some 1 gave the example of goldspot it was my fav including rimzim
    but the reason those were killed cuz coca-cola and pepsi setup thier plants here in india thus they were able to price it the same way as goldspot .but today if walmart tries to push in american goods they will be more expensive compared to indian goods .so indian goods will sell more which are made in india .. but this thing takes a turn when walmart starts selling cheap chinese goods which are cheaper then indian made goods that time india will loose big time .

    just imagine everything that is made in china will be sold in india ...and our economy will suffer the same way as usa is doing right now...
     
  3. Kejriwal4PM

    Kejriwal4PM 2nd Lieutant FULL MEMBER

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    I just dont understand this opposition to FDI in retail (beyond the real concern of loss of employment for middlemen, though most of loss figures are hyper inflated). Everything that foreign companies can do (predatory pricing and collusion) can be done by Indian retail giants too. If it is scale that matters, then where is the point that separates good from bad? Why should that point be between FDI and Indian retail giants? Why not between indian retail giants and small stores?

    As for the example in this thread on coke and goldspot: Such competitive practices can happen even from Indian corporate giants. Lets talk about how, even before Cola and Pepsi entered, Thumpsup and Limca overpowered drinks like Bovonto etc from Kali Mark which has also been in existence since 1916.

    Some argue there will be a net outflow of wealth through FDI irrespective of the Foreign Direct Investment in its name. I havent seen any logic for that! If anything, it is US that should worry because its money is going to be pumped into India now.
     
    Last edited: Dec 10, 2012
  4. grond

    grond Captain SENIOR MEMBER

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    Well there is an Indian way of doing business and an American way... As I also pointed out , Indian retail like Nilgiris ,Reliance and Spencers still adopt the middlemen system and the distributor network, by forcing in such a sea change of mentality at such a short period is more likely to do harm....
    A big business can handle predatory tactics but think about poorer farmers who have an end effect in this....
    As you know Tamil Nadu opposes FDI in retail , but still see my first post...
     
  5. Kejriwal4PM

    Kejriwal4PM 2nd Lieutant FULL MEMBER

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    Nilgris and Reliance already source a lot of their products directly from producers. Similarly, even after FDI activates, there will still be middlemen (employed by walmart/tesco/etc or outsourced) who will source and supply goods. So, again my question: where is the point that separates good from bad? Why should that point be between FDI and Indian retail giants? Why not between indian retail giants and small stores?

    About that building construction: Walmart has brought about the most negative publicity to retail market. Its actions have been questionable from labor rules to predatory practices to breaking laws etc. Not just in this building, also read about the case thats going on where walmart had already started frontend operations 2yrs back itself under a fictitious shell company.
     
  6. grond

    grond Captain SENIOR MEMBER

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    1 Can I have the sources for the building cause this is my own report ? i was biking near the other day and I asked this shopowner what this is and he showed me his Walmart ID card and told me that the building is for Walmart....
    2That debate resulted in greater checks being placed on retail and only after partial lifting of the regulations did relaince step in... With the advent of FDi and bringing in international trade practices that are not suitable for India in the short run it will make the situation bad as I pointed out ... When foreign players have no need of supply chains why should Indians be far behind and this will be death knell for Poorer farmers...
     
  7. Kejriwal4PM

    Kejriwal4PM 2nd Lieutant FULL MEMBER

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    (1) I heard about that building only from you
    (2) Like I said, why only oppose foreign players when Indian corporate giants have been doing the same to SMEs in India. Textile industries have virtually wiped off weavers and home dyers. Big food chains are forcing small eateries out of business. and list is endless. Anyway I rest my case.
     
  8. grond

    grond Captain SENIOR MEMBER

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  9. DaRk KnIght

    DaRk KnIght Lt. Colonel ELITE MEMBER

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    My economics is not very good....Can somebody tell me how FDI (in general) is very important? FDI only constitutes 2% of the total investment (Even out of that 2, 1% id through hawala route)....so why not encourage 99% investment which is domestic in nature?
     
  10. DaRk KnIght

    DaRk KnIght Lt. Colonel ELITE MEMBER

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    40 lakhs employment: I dont know how wallmart will generate 40lakhs employments. Total revenue of wallmart is more than the total retail industry of India yet wallmart only employs 23 lakh people.
     
  11. grond

    grond Captain SENIOR MEMBER

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    I didn't want to repeat again so..
     
  12. Kejriwal4PM

    Kejriwal4PM 2nd Lieutant FULL MEMBER

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    Nice to see at least some one who is true enough to concede he does not know enough economic to take a stand! Dont worry, even those 546 MPs who voted on our behalf dont know either :D
     
  13. marshal panda

    marshal panda Lieutenant FULL MEMBER

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    It is not allowed,where it is needed most = defence sector!
     
  14. Kejriwal4PM

    Kejriwal4PM 2nd Lieutant FULL MEMBER

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    Really?? You think thats where FDI is most needed?! I would think thats too high a risk to allow FDI!

    On a side note, just wanted to add to my earlier comment...
    Economic predictions are even more complicated that weather predictions in the sense that economics involves many rational elements (humans) who are highly complicated when taking individual decisions. And both these field are highly nonlinear too. Thats why weather predictions beyond a few days are as good as tossing a coin. In economics, people routinely make predictions many years and decades into the future. It then becomes more of belief than logic, and thats why people usually take positions on FDI depending on what their favorite party's stand is or depending on their favority economic ideologies (leftist or rightist), and not based on water-tight models.
     
  15. DaRk KnIght

    DaRk KnIght Lt. Colonel ELITE MEMBER

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    Honestly... I could not understand anything of your post.

    But that didnt answer my question ;)
     
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