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FDI in Retail: Do you support?

Discussion in 'Hangout' started by ramjn, Dec 12, 2012.

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FDI - Do you support?

  1. Yes

    12 vote(s)
    70.6%
  2. No

    5 vote(s)
    29.4%
  1. ramjn

    ramjn Staff Member Janitor

    Messages:
    5,244
    Chennai
    Linea 1.3
    Well, this is one of the major step undertaken by India which could re-shape the retail market in another 5-10 years. We have seen lot of debates and arguments all these days. Here, just wanted to see how many of you guys are fine with this FDI. Please register your vote and also share your views.

    Note:- Please be generic in recording your views. Do not drag any political party or criticize their stand. Just record your view whether or not FDI is needed.
    Last edited: Dec 12, 2012
  2. Well, when I see those Walmarts or Krugers of the world, I feel they need to come here and India will become like that but looking at how these companies are exploitating workers in China,Bangaldesh by making them to work fr 16-18 hours a day,I also feel they should not be allowed here.
    But at the same length when I see greedy middleman selling vegetables at inflated rates or trader in SP/SJP road in Bangalore where they don't care much about customer, I feel these people need to be taught a lesson.
    All in all I am confused.
    1 person likes this.
  3. sungoa2010

    sungoa2010

    Messages:
    2,878
    Goa
    Pros and cons depends how efficiently we make use of it. Indian farmer and Industrial Alliance (IFIA) had supported FDI stating this will eliminate the role of middlemen between farmers and retailers. Definitely customers also get benefited because of this. The biggest enemy of farming community is the looting middlemen. If farmers get benefited it is going to boost the farming sector and overall good for the country. The dark side will be the growing junk food culture because of this and the retailers who are cannot compete with them. But in india we need to build the service culture and it will be only possible with the heat from this kind of initiatives. Who provide good service will only survive. Their profit may decrease but they will be able to survive if they give good service.
    3 people like this.
  4. With a population of 1.1 billion which these middleman are part of are devoid of the source of earning what will they do? I also hate these middleman as one rupee corn become 15 rupees and still farmer hardly get profited by the inflated prices.

    India is now opening to city culture where there is market for the farm produce but if the market is taken over my these MNC's how will an Indian get benefited? Walmart will take back the profits to US.May be govt will benefit from taxes they pay as most of these middlemen hardly paid taxes.
    But farmers getting more money is doubt as I have heard a saying in US "if walmart doesn't pick you as supplier you are done and if they pick you as supplier then also you are done" as Walmart is known to negotiate prices to levels of few cents.
    They may effectively replace our middlemen but but exploit farmers by paying the same prices when they have the monopoly.

    Between In Bangalore Metro(German retail bull) is already there touted as B2B model they give card to anyone with some TIN number and additional card as helper,Prices used to be cheap there as I too have card but now a days they are as much as anybody else.

    I am not sure how metro got in,there was lot protest against them but now everybody is silent.they challenged the middlemen by opening store near to APMC yard in yashwantpur,Traders did not allow them to sell anything like farm produce (Vegetables/Rice/Grains) but from past 2 years they have been selling them and no body has been raising a word.
    Last edited: Dec 12, 2012
    1 person likes this.
  5. PatchyBoy

    PatchyBoy Esperto

    Messages:
    2,438
    Bangalore
    On the positive side, this will greatly benefit the farmer and the consumer, by eliminating the middlemen. It will also aid in a spurt of economical growth and will probably lead to horizontal expansion of infrastructure, rather than the crowded vertical expansion we see today. It will encourage more entrepreneurs to venture into the rural areas, thereby encouraging infrastructural improvements in more areas.

    On the negative side, the Indian "culture" will come into play, where there will be these unscrupulous elements, who will go all out to cash in on the weaknesses which will eventually result in the collapse of the whole idea.

    I have not voted - I am :confused

    Rajan
  6. amit

    amit Superiore

    Messages:
    767
    Navi Mumbai
    Though I have not voted, I feel the Walmart's & other retailer's wouldn't have a easy run here at least for the first few year's. Apart from metro citie's I doubt this concept will take off in the smaller town's & villages. Out there you still have kirana shops where family's have monthly credit's with the shopkeeper's. The convenience of this model can never be replaced by any Walmart. Our infrastructure is also not conducive to these stores. Even in Mumbai, if someone doesn't have a car how is he going to shop and carry his grocery's to his house? In buses and local trains! :shocked

    Also, what about the infrastructure to get the produce from farm's to the warehouses to the retail stores? Where are the roads, air conditioned trucks?

    Come to think about it, where is the place in our citie's to have the sprawling Walmart stores?
    Last edited: Dec 12, 2012
    1 person likes this.
  7. Ravi

    Ravi Staff Member Janitor

    Messages:
    6,001
    Bangalore
    Grande Punto 1.3
    I have voted for yes.

    First this all theory about malls will eat the small shopkeeper, is without any base. These middleman will continue to play there part, its just the hype which is problem. We are just making our assumptions on extremes.
    We already have mall culture in Indian metros now. And the small shops are still there and working as it was earlier.

    Now only thing is about FDI, I think this will help in putting better practices to already existing retail chains. They will help Govt to preserve foodgrains.

    This is not going to reach to smaller town or villages in next few decades, and by then situation will change.

    I remember when first time computer was introduced similar type of skepticism was there, but it did nothing but good for country.
    1 person likes this.
  8. gurjinder

    gurjinder Staff Member Janitor

    Messages:
    3,989
    Punjab
    I'm optimistic about it all. Till proven otherwise.

    Firstly, the following conditions need to be highlighted. These are Government guidelines which have to be adhered to :

    1. These retail stores will only come up in cities having a population exceeding 1 million. So, anyone who says that the local kirana store guy will be killed off across India does not know what he's talking about.

    2. Atleast 50% of the total investment by the foreign entity will be spent on back-end infrastructure.

    3. Atleast 30% of their produce shall be procured from small industries of India.

    Here's the official definition of "back end infrastructure"

    There is NO valid criticism of FDI in retail. None at all. Unless someone has a cynical bent of mind or is a middleman or some ulterior motive. Frank but true. I'm optimistic about it all.

    When a farmer sells his produce for 5 rupees which becomes 30rs at the market shelf, you know something is wrong. And if we have an opportunity to help set that right, even if to a limited extent, we must endorse it.
    6 people like this.
  9. sungoa2010

    sungoa2010

    Messages:
    2,878
    Goa
    Can Indians buy their shares? I wish we could. A portion of profit(apart from taxes) should flow back to India. Government should take initiation in that way.
  10. dharmesh

    dharmesh

    Messages:
    54
    mumbai
    I stay In Kandivali, Mumbai. We have Big Bazaar, A Mall (Growels 101) and then Metro chain. Big Bazzar and Metro usually are crowded, where we need to spend atleast 30 odd minutes in queue on check out counter. Still I can see rush at Kirana shop. Because the small families still prefer the Kirana instead of Big Bazaar.

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