Government announces FDI in multi-brand retail; Cabinet relaxes FDI norms for aviation

[Swing_n_Speed]

OK i got no idea what a domestic clause is etc etc. But this is good news. :yay::yay: I would love to know why the BJP is so opposed to this? Clearly they are acting at the behest of some lobby. Would love to know whose interests are served by blocking these FDI reforms.

[Sachin=GOD]

OK i got no idea what a domestic clause is etc etc. But this is good news. :yay::yay: I would love to know why the BJP is so opposed to this? Clearly they are acting at the behest of some lobby. Would love to know whose interests are served by blocking these FDI reforms.

their stand is that the entry of large foreign retailers would lead to job losses and the death of the local kirana store.

[Clarke]

So now Mallaya can just sell a part of his stake to one of the many' date=' many foreign airlines eager to enter the Indian market and then he will go scot free for what he did to Kingfisher :headshake:[/quote'] The foreign airline must be confident/foolish to pick up that stake and if they can turn things around, kudos to them.

[Clarke]

What happens if CM memsahib isn't just calling the bluff ? If she withdraws support, does the govt lose majority ?

[superstar]

Govt will have majority but will be at the mercy of UP netas.

[Crookbond]

What happens if CM memsahib isn't just calling the bluff ? If she withdraws support' date=' does the govt lose majority ?[/quote'] Yes superstar aka CSK Fanatic, How? :hmmmm2:

[surajmal]

Opposition to this bill can go to hell. Instead of *****ing and moaning about mom and pop stores (who are themselves cheats - these clowns import chinese products and sell them at hugely inflated prices), the focus should be on getting the manufacturing sector going. Watching some of these tv debates, I want to burn the Parliament down. ****ing imbeciles.

[Desi Cartman]

FDI norms for aviation hahahahah Mallya gets his way :finger:

[Crookbond]

I also don't understand the logic of "our business will die". WTF do you mean by that? I am providing you exactly the same set of rules as the others. Make your niche & innovate! You can not f-u-c-king tell me that you don't want your lazy a-s-s to think out of the box.

[rkt.india]

Opposition to this bill can go to hell. Instead of *****ing and moaning about mom and pop stores (who are themselves cheats - these clowns import chinese products and sell them at hugely inflated prices)' date=' the focus should be on getting the manufacturing sector going. Watching some of these tv debates, I want to burn the Parliament down. ****ing imbeciles.[/quote'] +1

[surajmal]

Another Clown (Arun Jaitley)

The first consequence will be an adverse impact on domestic manufacturing. Domestic retailers source domestically. International retailers operate on the principle of buying internationally at the cheapest cost. Majority items to be sold by international retailers are going to be sourced from cheaper manufacturing economies like China. Clothes, shoes, toiletries and other items of daily use are not likely to bear the Indian signature. The fall in manufacturing sector jobs is likely. India needs manufacturing sector reforms in the first instance, so as to enable us develop into low cost manufacturing economy. For this, we need to improve infrastructure, low cost utilities, competitive interest rates and trade facilitation. Once these reforms bring down the cost of our manufacturing goods, we can expect international retailers to source domestically. In the absence of these reforms, international retailers will be selling the products of low-cost economies, leading to an adverse setback to our already challenged manufacturing sector.

http://www.niticentral.com/2012/09/fdi-in-multi-brand-retail-will-destroy-indian-manufacturing-agriculture.html Who the **** is stopping you from propping up Domestic Manufacturing? Why not demand that from the government instead of blocking a largely beneficial bill? No for the sake of No... **** You Jaitley. You'll never be a PM. Seriously it is Modi or bust for BJP. Rest of the lot is uninspiring to say the least. No solutions just bhaanji marna at every opportunity.

[surajmal]

BTW, I get their apprehensions in supporting a UPA Bill. But it is no one's fault but their's for not taking on the institutions that are in bed with Congressis when they had the reins of the nation under Vajpayee. Don't ****ing make the nation suffer for your inaction. If you want to be a bunch of vindictive bastards, do so the next time you win the general elections but for the time being don't let the country suffer. Nationalist Party my ass...

[Sachin=GOD]

What happens if CM memsahib isn't just calling the bluff ? If she withdraws support' date=' does the govt lose majority ?[/quote'] Govt still won't lose majority because both Mayawati and MSY would be eager to give "outside" support.

[ravishingravi]

and rupee jumps 100 basis point

[rkt.india]

Another Clown (Arun Jaitley) http://www.niticentral.com/2012/09/fdi-in-multi-brand-retail-will-destroy-indian-manufacturing-agriculture.html Who the **** is stopping you from propping up Domestic Manufacturing? Why not demand that from the government instead of blocking a largely beneficial bill? No for the sake of No... **** You Jaitley. You'll never be a PM. Seriously it is Modi or bust for BJP. Rest of the lot is uninspiring to say the least. No solutions just bhaanji marna at every opportunity.

I think he is right. This bill is largely about FDI in retail sector rather than manufacturing sector. It is not like we don't have FDI already in India but now it has been brought in retail sector and this is not going to benefit us much that is why US government has been so pressurizing India to open FDI in retail because they see their benefits in it as India is a big market and they can sell their products here. It will only take money out of India. If that happens then it will only make situation worse. We need to make a manufacturing and export economy rather than just a trading hub. They do not need to manufacture anything here, just buy some percentage of them from home grown manufacturers that will be mostly agricultural products and import others which are not manufactured here. It will just make India a trade hub and a false economy.

[The Dark Horse]

India has buckled to outside pressure by allowing in the multinational retailer — the only beneficiary of this move

For U.S. President Barack Obama there could be nothing more cheering. The ‘underachiever’ now goes to the presidential polls with a lot of confidence — India’s decision to open up FDI in multi-brand retail comes as a shot in the arm for the beleaguered American economy and will obviously boost his poll prospects. Mr. Obama certainly knows what is good for the U.S. economy; Prime Minister Manmohan Singh also knows what is in America’s interest. Mr. Obama, for instance, wanted to stop outsourcing to protect U.S. jobs. No amount of persuasion from India changed his mind. Similarly, knowing how important FDI in retail is for him, he had pitched for a new wave of economic reforms. It was surprising to see Mr. Obama telling India what is good for us. Aided and abetted by TIME magazine and credit rating agencies like Standard&Poor’s, Fitch and Moody’s, India finally buckled under global pressure. What is little known is that India was also under a G-20 obligation to remove all hurdles to the growth of multi-brand retail. But is FDI in retail really good for India? Will it improve rural infrastructure, reduce wastage of agricultural produce, and enable farmers to get a better price for their crops? While a lot has been said and written about the virtues of big retail, let me make an attempt to answer some of the big claims. Agriculture: The Prime Minister has repeatedly projected FDI in retail as a boon for agriculture. Unfortunately, this is not true. Even in the U.S., big retail has not helped farmers — it is federal support that makes agriculture profitable. In its last Farm Bill in 2008, the U.S. made a provision of $307 billion for agriculture for the next five years. . Where is the justification for such massive support if big retail was providing farmers better prices? And let us not forget, despite these subsidies studies have shown that one farmer in Europe quits agriculture every minute. The second argument is that big retail will squeeze out middleman and therefore provide a better price to farmers. This is again not borne by facts. In the U.S., some studies have shown that the net income of farmers has come down from 70 per cent in the early 20th century to less than four per cent in 2005. This is because big retail actually brings in a new battery of middlemen — quality controller, standardiser, certification agency, processor, packaging consultants etc. It is these middlemen who walk away with the profits and the farmer is left to survive on the subsidy dole. Monopolistic power enables these companies to go in for predatory pricing. Empirical studies have shown that consumer prices in supermarkets in Latin America, Africa and Asia have remained higher than the open market by 20 to 30 per cent. And finally, the argument that multi-brand retail will provide adequate scientific storage and thereby save millions of tonnes of food grains from rotting. I don’t know where in the world big retail has provided backend grain storage facilities? FDI is already allowed in storage, and no investment has come in. Let it also be known that even the 30-per-cent local sourcing clause for single-brand retail has already been challenged and quietly put in cold storage by the Ministry of Commerce. Employment: The Indian retail market is estimated to be around $400 billion with more than 12 million retailers employing 40 million people. Ironically, Wal-Mart’s turnover is also around $420 billion, but it employs only 2.1 million people. If Wal-Mart can achieve the same turnover with hardly a fraction of the workforce employed by the Indian retail sector, how do we expect big retail to create jobs? It is the Indian retail sector which is a much bigger employer, and big retail will only destroy millions of livelihoods. State government’s prerogative: Very cleverly, the Central government has allowed the State governments the final say in allowing FDI in retail. This may to some extent pacify those State governments opposed to big retail. However, the industry is upbeat and knows well that as per international trade norms, member countries have to provide national treatment. Being a signatory to Bilateral Investment promotion and Protection Agreements (BIPAs), India has to provide national treatment to the investors. Agreements with more than 70 countries have already been signed. State governments will, therefore, have to open up for big retail. Industries will use the legal option to force the States to comply. And more importantly, let us look at how the virus of big retail spreads, even if the promise is to keep it confined to major cities. Recently, a New York Times expose showed how Wal-Mart had captured nearly 50 per cent of Mexico’s retail market in 10 years. What is important here is that as per the NYT disclosure “the Mexican subsidiary of Wal-Mart, which opened 431 stores in 2011, had paid bribes and an internal enquiry into the matter has been suppressed at corporate headquarters in Arkansas”. In India, we are aware that Wal-Mart alone had spent Rs.52 crore in two years to lobby, as per a disclosure statement made in the U.S. It has certainly paid off.

http://www.thehindu.com/opinion/op-ed/article3897906.ece

[Desi Cartman]

oh yea the walmarts will be open in India in the next 8 weeks :headshake:

[Anonymous]

Better late then never. Mallya should be breathing easy now

Not advocating 100 percent. But some number that doesn't have a negative effect on India long term - particularly on the trade deficit (I don't know what that number is). Even the current bill has 30 % domestic. (Maybe that is enough. But know MMS' love for everything Gora, it is most likely way under what it should be). BTW look at Chinese FDI policies. Yet the West is falling head over heels to invest there.

Apples and ROTTEN Oranges mate. Its not really that difficult to source from China given that its the world's factory now but India has a lot more to do even to become a sourcing hub for local retailers. Infrastructure problems will definitely put off a lot of companies as they cannot do **** without quality infra.

[beetle]

I also don't understand the logic of "our business will die". WTF do you mean by that? I am providing you exactly the same set of rules as the others. Make your niche & innovate! You can not f-u-c-king tell me that you don't want your lazy a-s-s to think out of the box.

Time for the neighborhood dukaan laala to shoo the rats out give some quality to his customers.

[ganeshran]

Mamata Di withdraws support.