No Retail FDI RohitPatel

8/6/2019 No Retail FDI RohitPatel

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Retail trade contributes around 10-11% of Indias GDP and currently employsover 4 crore people.

unorganized retailing accounts for 96% of the total retailtrade. Traditional forms of low-cost retail trade, from the owner operated localshops and general stores to the handcart and pavement vendors togetherform the bulk of this sector.

McKinsey Report on Indian Growth projects an addition of 71 lakhs jobs inthe retail sector between 2000 to 2010 with the modern format retailers (e.g.supermarkets) accounting for 8 lakhs jobs

UNDERSTANDINGINDIAN RETAIL SEGMENT


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F oreign Direct Investment ( F DI) is not permitted in retail trade except in single Brand product retailing whereF oreignInvestment up to 51% is permitted with prior Government approval and subject tothe following conditions:

1. Products to be sold should be of Single Brand only2. Products should be sold under the same brand internationally and3. Single brand product-retailing would cover only products which arebranded during manufacturing .


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Governments Justifications for supporting F DI in Retail

1 Inflation will be controlled.

2 Employment will be created

3 Complete Tax benefits from organized retail sector

4 Farmer will be benefited as middle-man/agent will be eradicated

5 Consumer will be benefited out of competition

6 Inspiration from Chinese open market strategies

7 Target Figures in Foreign Direct Invest will achieve.

8 Export of Indian product will rise.

9 SME will grow

10 India will shine Globally


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1. Inflation will be controlled.

Government incapable to control inflation themselves ?

Do we need Foreign companies to solve our National problem ?

Our Finance ministry incapable ?

Is it why commodity prices are on rise ?


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On Indias last Independence day China Charges Fines to Carrefour, Wal-Martfor Deceptive Pricing

The Chinese government accused Carrefour SA and Wal-Mart Stores Inc. of deceptive pricing at their store in the country, ordering local authorities toimpose fines.

The National Development and Reform Commission said Wednesday that itfound misleading pricing at 11 Carrefour stores and three Wal-Mart stores.The commission also alleged such practices at a branch of a Chinesesupermarket chain.

The agency's statement came amid heightened concern over pricing as China

battles inflation. China's consumer-price index rose 4.6% last month, afterreaching a two-year high of 5.1% in November.

The commission said the stores misled shoppers by claiming that the originalprices on discounted items were higher than they actually were, making thediscounts seem greater, or by charging customers more at the register than

the prices on labels or in advertisements.

We trust these MNC Retailers for inflation control ?


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2 . Employment will be created.

20 lack jobs will be created on the cost of 5 caror self employed localshop keepers ?

Retail trade being an easy business to enter with low capital andinfrastructure needs, acts as a kind of social security net for theunemployed

Government cant create Jobs in new sector ?


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4 . F armer will be benefited as middle-man andagents will be eradicated.

If they serve the competitive price to consumer,MNC will have to import goods from cheapest market of the world,

does this protect local supplier or farmer ? either they can serve consumeror they can serve supplier.

Does it match the farmers expectations in terms of volume,quality and delivery. ?

Will farmer have to face problems related to depressed prices due to cutthroatcompetition among the food retailers, delayed payments and lack of credit andInsurance. ?

Why cant we make strong laws to support farmers toprotect them from local traders ?


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5. Consumer will be benefited out of competition.

The ability of the multinational retail chains to sell at low prices is often attributedto their efficiency in sourcing goods from their lowest cost producers around theworld. What underlies this so-called efficiency or cost reduction through betterinventory and cost management is the ability of these retail chains to squeezeproducers across the globe using their monophony power.

If these retailers are to sell goods to Indian consumers at prices, which arecheaper than what prevails today while sourcing their goods from Indian producers,the latter are definitely going to be at the receiving end in terms of declining incomes.

In case the multinational retailers import the cheaper goods from abroad,domestic producers would be displaced anyway. It is difficult to understand therefore

how the domestic producers would benefit from these multinational retailers.

cocoa farmer from Ghana gets only about 4% of the price of a typical milk-chocolate bar, the retail margin would be around 34.1%. Banana producer getsaround 5% of the final price of a banana while over 34% accrues to distribution andretail. 54% of the final price of a pair of jeans goes to the retailers while the

manufacturing worker gets around 12%.


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6 . Inspiration Chinese open market strategies

60% products in world wide MNC Retail stores are made in china.

China is manufacturing hub of the world, when they sale it to world,they have to open there own market too.

Do we stand in global manufacturing index anywhere?


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. Target F igures in F oreign Direct Invest will increase.

Does FDI in retail bring any innovative technology ?

Does FDI in retail bring any solution to environment ?

Does FDI in retail bring any up-gradation to infrastructure ?

Does FDI in retail bring any fuel and power generation technology ?

We not capable to Retail store construction technology, Logistic systemdevelopment or Computer technology used in modern retail ?

Our own corporate houses cant manage domestic retail segment ?


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8 . E xport of Indian product will rise.

Our manufacturing industry competitive to Chinese prices ?

Our quality will sustain against credit payment system ?

How These MNC Retailers force to WTO and developed countries tochange dumping laws ?


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9. SME will grow

60,000 articles in wall mart. 70% of them are made in china.How many made in India articles sold in any MNC retail world wide ?

In India 25000 different articles are made by below communities whohave only scope of the self employment by producing SME articles andselling it

25 % by Muslim,(shoes, bags, bangles, cloths, steel crafts, glass work, bakery)25% by schedule caste,20 % by schedule tribe,15 % by OBC pottery, fabric crafts,

Will they sustain against Chinese quality, quantity and price ?


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10 India will shineGlobally

Big MNC building in metro city with the lane of beggars and jobseekers would be the shining evidence globally ?


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F DI in RE TAILWho will affect

Indian Production house against Chinese dumping

Small scale sector

Small and Large KINARA stores

SME Fabricators

Indian traders in each town

Local business man, who want to run a small shop

All associated with Swadesi promotion movement


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Our proposal if Government impose RetailF DI

Heavy duty on Chinese and other imported product to

protect domestic production. No import license to these retail corporate

Must import the equal quality of goods made in byIndian production house

No foreign management Jobs outsourcing

Reservation of Job to poor class

Hindi and Other Regional language as the language of operation

Retail company cant produce their own packed goods

Must promote and allocate atleast 30 % space for swadesi product.

Mall will locate outside city, like cosmopolitan cities.

FDI should be allowed in a relatively less sensitive sectors like

entertainment, technological goods, "


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Hide n Seek supporting F DI in Retail.

Capitalist and hungry corporate business who want to expand fast

Young Management graduates hoping scope of JOBs

Will corrupt politicians get Direct Bribes easily?

Will their kids get good shopping environment?

Will the rich people get foreign quality good?

Media and celebrities who will get ads champagne


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E vil of Global Retail culture

Brand Monopoly

Centralized product sourcing and logistic.

Import Dumping.

Rise of electrical and fuel consumption due to large logistic utility.

Profit oriented Foreign Management.

Credit and payment issues to vendors

only profit ethics advertisements


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Illusion of Development

FDI in retail dont bring Technology.

Logistic system will consume more fuel and waste electricity.

Liberalization of trade policies led India to become an investmentfriendly country is an illusion

70% Farmer get benefited ? How ?The current prices in agricultural commodity in established retail ismore than local Kinara shop.

Consumer get benefited.The current MRP of mall product is more than street shop

Quality norm of MNCs will affect the average wholesale price.Will Indian companies capable to survive against wallmart-carrfour-tesco ?

FDI in retail is Greenfield FDI in manufacturing Technology ?

Does it develop infrastructure , does it generate power or fuel ?


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Why F oreign Investment

Large Indian Business Group already have established this sector

Future Group, Reliance, Tata, Aditya Birla, RPG, Vishal Group, Pyramid.Shopper's Stop, Pantaloon, Subhiksha, Globus, Raymond, Titan.

Why we need Foreign Investments. ?

India does have any prior commitments vis--visthe W T O to open up the retail sector. ?


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You tooask these 10 Questions to Government


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Join Rohit Patelagainst F DI in Retail

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No Retail FDI RohitPatel

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