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FDI IN RETAIL
The Indian Tamasha
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The flow
Introduction
Why India should avoid FDI?
The MNC effect
Pros & cons
On the bright side
On the dark side
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An investment is..
The commitment of money of
capital to purchase financialinstruments or assets in order
to get profitable results
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An investment becomes foreign
investment when..
Investment done by citizenand government of one
country invests in the
industries of other country.
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First things first
FDI means Foreign Direct Investment
Mainly dealings with monetary matters .
They acquires standalone position in the economy.
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Their policy to remove rivals
Sellproducts at
low price
Competitor-shut down
And then companieslike Wall-Mart will
increase prices
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Bartersystem
Weeklymarket
Kirana stores
Governmentstores
SupermarketsHypermarketsMalls
Introduction to
modern retail
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With FDI in retail, shops like this
will disappear
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Why India should avoid FDI in Multi
- brand Retail?
End of role to Distributers and Brokers as well as
labors.
" Contract Farming".
Manufacturer will remain under constant pressure to
keep the production cost low.
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Multinationals enters into business ONLY for
PROFIT NOTHING ELSE.
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EMPLOYMENT UNDER EXISTING
SYSTEM
Farm labours
Dalals
BrokersTransporters
Tea shop owners
Hotels
DhabasShop keepers
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AFTER M.N.C. TAKE OVER
All works in farm by machine under corporate
farming
Automatic transfer and packing by machines.
Sale to customers through chain of departmental
stores.
Large number of self employed to becomeunemployed.
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Contract farming
Collection of
Agriculture productsTo own factory
To own dept. Store
To customer
MNC
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REQUEST STOP FDI IN RETAIL TRADE
If Domestic Retail Trade is allowed by Big MNCs-Large Scale Unemployment.
A new class of unemployed called Unemployed
Traders will join the existing force of unemployedpersons.
Everybody knows how Big Fish eats away smallfishes.
Keeping the experience of other countries in mind,Govt. should not take any such decision for whichthe whole country and coming generation willhave to suffer.
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Inflow of equipments.
Innovations.
Export growth.
Access to global
market.
Reduced cost, wider
choice and improvedquality.
Crowding of localindustries.
Loss of control. Conflicts.
Exploitation ofresources.
Socio cultural effect.
Advantages
Disadvantages
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NOW ITS INDIAS TURN
It is unfortunate that Central Cabinet has givenapproval to FDI in Retail Trade.
Shift of Major retail trade to these big companies willrender small traders & their employees unemployed.
After establishing control over purchases & sale thesecompanies will start dictating.
Employment issues.
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ON THE BRIGHT SIDE
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According to the P.M-
It will help introduce new technologies in agri-marketing,
and will "benefit farmers and consumers.
It would benefit the consumers, producers (farmers)
and small and medium enterprises (SMEs) and generate significant
employment.
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The change
Current size of organized retail in India stands at
close to 6%7% of total retail market.
The new retail market is estimated to grow to 21%
by 2020.
Game changer for kick-starting economy
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The change
Major investments can be expected.
This can also be considered as one more step
towards encouraging those who have been sitting
on the fence to invest in India.
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Allaying the fears of small players
Organized retail and kiranas can very easily co-
exist, as they do in both developed and developing
economies around the world Raj Jain, chief executive and MD of Bharti Walmart
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Benefits for the common man
All will be benefited.
Farmers will get the right price for their produce.
New employment opportunities will emerge.
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On the dark side
I want rain, not FDI", said 43-year-old Harjari Ram,
a farmer from Rajasthan.
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Losers
Majority of the Indian small-scale industries ormanufacturers will be forced to shut down
Majority of small traders and shopkeepers will endup closing their shops.
Indian manufacturing jobs will be lost
Lower middle class workers would end up losingtheir jobs as the Illiteracy level among them is very
high.
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Gainers
Real estate agents and developers
Banking sector
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In the conclusion
Though the FDI has its own benefits
In a long run this will be harmful
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Thankyou..!!
