The Indian government will soon take a “political call” on the contentious issue of FDI in multi-brand retail as it cannot wait indefinitely, Commerce Minister Anand Sharma has said.
Speaking to reporters here last evening, Mr Sharma, who is in London to attend the Global Investment Conference and meet senior ministers in the David Cameron government, said the government is seeking to arrive at a consensus not only among political parties but also among all stakeholders, such as farmers, SMEs and community groups.
“Most Chief Ministers support FDI in retail. There are particular reservations of the Left parties, who continue to have ideological blinkers. The principal opposition also has a partisan agenda, it changes sides when it suits them,” Mr Sharma said.
“It will be our political decision when to notify it ...
We can’t wait for unanimity, or we will wait forever. We have taken a decision, we are committed to it, we are trying to build a consensus until which it has been held in abeyance. It will be a political call,” he added.
The decision to allow 51 per cent foreign direct investment (FDI) in multi-brand retail was announced in November 2011. But its implementation was put on hold after a strong protest from various parties including key UPA-ally Trinamool Congress.
After that, the government has renewed its efforts to forge a consensus on the politically-sensitive issue.
As the UPA supporting Samajwadi Party also opposing the decision, the government would find it difficult to implement the decision.
Recently, JD-U President Sharad Yadav joined hands with Left and SP in opposing foreign direct investment in retail.
Keywords: FDI, FDI in retail, Anand Sharma, multi-brand retail, Indian trade policy
Shri Ooman Chandy,the Kerala CM has opposed FDI,citing the correct
reasons.Western Retailers,will shatter local businesses and destroy
Unions.
FDI in retail will ruin Indian Economy. They have walmart and Tesco. What do we have on our side to walk into their country? NOTHING. It is as simple as that. They will bulldoze Retail as we know it. Guys anybody recall Gold Spot, Campa Cola? Now all people know is Pepsi and Coke. No beverage has a chance to survive against those guys. Same will happen in retail. We need to have our own brands that can stand up. AT that point we can open up. Until then, please don't allow FDI in retail.
If Mr. Anand Sharma succeeds it is commendable. There could be arguments from
opposing individuals and parties. There is near-unanimity that FDI in retail will bring
about revolutionary changes in the entire edifice of supply chain which will
modernize the system to a large extent. With modern technology, transportation,
storage and marketing methods there could be considerable beneficial effects. It is
only when such things are in place that the benefits will be realized by all concerned.
Indian economic growth rate is coming down faster than one can think off. Thanks to indecision of this govt. that has failed on every parameter except appeasing it's allies over the past 4 years. It inherited a real india shining story from NDA Govt. and did the impossible to the growth story.
FDI in retail will help in the creation of a robust infrastructure of cold chain storage in rural areas, increase farm incomes due to reduced wastage of agricultural produce, generate huge employment opportunities, direct and indirect, in rural and urban areas, control inflation and bring massive amounts of FDI in India. Increased farm incomes will generate consumption demand and bring more investment both by Indian companies and MNC,s in other sectors generating more employment and growth...
The issue with FDI in multibrand retail is something that is not required. These big companies have shown that with their money and muscle they will eradicate small family owned stores - they will be aggressively pricing until these stores are abolished and once established they set the tone of business from producers to suppliers to customers everyone will have to dance to their tune.
India has several indigenous multi brand retails which can be allowed to grow further by reduced red tape and bureaucracy - which the government promises for foreign players. We are supposed to socialist secular republic - not capitalist where 1 man gets rich at the cost of 10,000 peoples livelihood. That is not sustainable neither good for society.
If FDI means capital inflow and cost reduction for domestic consumers, the same logic should apply for labour into those countries unhindered. After all, both labour and capital are factors of production. Why should capitalist countries enjoy rent for their citizens while Indian small time capitalists forgo the same? Government should strive for labour export with the same zeal it strives for capital inflows.
Farmers have to get good price for their produce or else the
agricultural economy would collapse. To this end avoiding
middlemen would help. For this large storage and cold storage
infrastructure would be required. First allow our own investors
to set up the necessary infrastructure through help from liberal
finance from Government and Banks. Allowing foreign players into
all walks of our life would enslave us. Also not allowing huge
investment and bigger players from entering into retail market
would affect the farmers and the ultimate consumers at large. The
need of the hour is avoid middlemen as much as possible and also
improve transparency in retail trade and avoid tax evasion in
retail trade.
Sir,I here with object the FDI policy which may ruin the economy of India as well as the tiny producers like small scale industries in turn leads to the unemployment and also destruction of life would occur.Every knows story that foreigners (British,Dutch,French,Portuguese people )who made us slaves for more than 200 years.The History should not repeated and has to be Blocked by opposing the FDI move by the Central Govt.
The proof is in the pudding! We will believe Mr. Sharma when the govt makes it legal and sticks to it as opposed to folding under pressure as was the last time.
The prospect of allowing 51% FDI in retail marketing has created lot of flutter among
its proponents and opponents, yet without a conclusive study of its impact on the
existing network of next-door grocery vendors and the farmers. While it is claimed
that it will abolish the hegemony of the middlemen who have mastered the art of
keeping the hard working small-scale farmers in perpetual poverty, others claim that
it will destroy the livelihood of several thousand local provision store owners. But the
veracity of these arguments are still debated and based on partially-informed
opinions, certain political parties attempt to murky the water. In stead of forcing it
from the center, states should be given the choice to implement it on trial basis and
enforce internal policy adjustments to correct the negative outcome and then the
federal policy implementation should be attempted.
FDI in multibrand retail is the need of the hour,because our economic
growth is low in spite of huge opportunities and dearth of foreign
exchange and also because big players don’t have a magic wand that they
can use to ouster other smaller players as soon as they enter any
market. Many of their strengths in their home countries are based on
factors that are totally absent in other countries. Wal-Mart is able to
drive costs down because of its incredible logistics and supply chains
which are absent in India as they were absent in China.
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