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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. That is the hard truth why our IIT's although respected don't figure in top 100 universities .
  2. PatchyBoy

    PatchyBoy Esperto

    Messages:
    2,438
    Bangalore
    Sure. I salute you for having funded most of your education 10 years back. Agreed that if one wants to fund one's own education, one will find a way. This merely gives them one more option. Having an extra option should not be that bad, in this context, right? Also, I personally know of atleast half a dozen students who work in these multi-brand retail stores, with an objective of funding their education. Not sure how you came to a conclusion that those kids seen in the check-out counters are not students and are doomed to work there for the rest of their lives.

    The problem is, we only hear of those that are successful and have made a big name for themselves. We do not like to acknowledge the lesser known people as successful entrepreneurs. The dictionary defines entrepreneur as "a person who organizes and manages any enterprise, especially a business, usually with considerable initiative and risk.". Even the more developed countries have only produced an handful of hugely successful businessmen. The vast majority of the others work for the enterprises these successful people create. The rest become successful entrepreneurs in their own rights, but are seldom noticed.

    Everything that happens, usually have a good and a bad side. Which one we choose is our prerogative.

    Rajan
    Last edited: Dec 12, 2012
    2 people like this.
  3. mightymaveryk

    mightymaveryk Regolare

    Messages:
    341
    Bangalore
    Grande Punto 1.3
    Mr. Rajan,

    The percentage will very less. Maximum 20% of the workforce behind these retail stores may be the students. The others are school dropouts or the ones who even cannot support their studies as the need of supporting the family cause (this case the appreciation definitely goes to the retail stores).
  4. PatchyBoy

    PatchyBoy Esperto

    Messages:
    2,438
    Bangalore
    That is true. But that has really nothing to do with the topic of this thread and we are going way too OT :D

    Rajan
  5. sungoa2010

    sungoa2010

    Messages:
    2,878
    Goa
    Now let us come back to the mai topic. Let us discuss another aspect of the issue. The food culture that these shops introduce will definitely bring packet food culture. That means more plastics and more polluting environment. I am talking about the trend. The trend that created by our supermarkets will be far less than these walmart kind of stores.
    We had fast food stores in india. But it was the international brands that created the trends. Let us think about a small fiat meet in metro the first options coming will be the foreign brand fast food centers. That is what I call as trend.
  6. sandy.chegi

    sandy.chegi Novizio

    Messages:
    49
    Bangalore
    The way I see it, every thing has a flip side to it. It depends on which part of the flip aide are we seeing. For example, opening up the market in India for MNCs to setup IT and ITES companies in India. Well, it has done a world of good for India but on the other side, to set-up these companies, lot of agricultural land is converted to SEZs or STPs or even residential complexes. Yes, in this, flip side is that land owners have become rich over night. Everyone want their kids to be part of IT or related industry.

    Now talking about the negative side of it, there is significant reduction in the agricultural land and output. Lots of greenery is being mowed down for making its way for concrete jungles. However, when you see larger picture, IT has done good than bad. Atleast for Tier 1 and Tier II cities.

    Now with FDI, if there are laws which govern the walmarts or Tescos to work as per our laws than implementing what they do in US or other countries, then I believe, it will do good than bad because, there wouldn't be wastage due to non-availability of cold storages or middlemen buying them for peanuts and increasing the rates of fruits and vegetables exponentially before bringing them to market.

    Can you imagine about 50-60% of the agricultural produce doesn't come into market because of wastage. Even if half of this wastage is used appropriately, then I think prices will come down. This may be attributed as companies paying less to farmers but the way I see it, Why will they sell it to MNCs, they will as well sell it to middlemen if they don't get price. Well, this particular point of selling back to middlemen might have adverse consequences to farmers.

    We are talking about muti brand retail. SO its not going to just have farmer produce. So let it begin, may be people will choose where to buy items and where to buy vegetables. I guess we are smart enough in that respect. For instance, our family goes to market to buy vegetables but go to bigger markets if we have to buy anything household or other misc items. So doing a window shopping for couple of times will let you know what can be shopped in walmarts and what not.

    So all in all, every positive point has negative aspect to it and every negative one has positive. It all depends on how our law makers want to take this ahead, that is FDI in multi-brand retail and how we perceive the move. At ground level, its local leaders who control everything, so as long as its beneficial for all the people involved in this, I guess it is here to stay. Sun shine depends on which part of planet you stay. Hence, its all about how much % of people benefit by FDI.
    Last edited: Dec 12, 2012
  7. mightymaveryk

    mightymaveryk Regolare

    Messages:
    341
    Bangalore
    Grande Punto 1.3
    The walmart already lobbied 125 crores to get to India. So hopefully the law bends for another 50-60 crores they lobby; not towards the common man in India.

    It is not 50-60%. The figure is ~35%. The Government should find a way to create the infrastructure to get the farmers to sell their products directly to customers (like HopCom stores of Karnataka and Uzhavar Santhai of Tamil Nadu)

    The trend need not to be set by any MNCs as for now. It will happen as the internet and media brings everything to the doorsteps. 60-70% of packaging that uses polythene/poly-urathene/poly-corbonate across globe is done in India already that itself is a big industry (without the knowledge of common man!?)
  8. sandy.chegi

    sandy.chegi Novizio

    Messages:
    49
    Bangalore
    Well, they have come up with a statement that the lobbying was not with respect to a political party. Anyway, you have a point on this for sure. :)

    Well, the system exists in AP as well. If you take a survey, how many of the village farmers are selling them in these market yards. Even these selling locations are auctioned. Its a big political game to have their trusted aids to get the nominated posts. Nothing more than that.

    Having said that, I don't say it has not done any good but it never served the purpose of starting these in respective states. Infact you may find some of the super markets giving vegetables are little cheaper prices than those in market.
  9. ramjn

    ramjn Staff Member Janitor

    Messages:
    5,243
    Chennai
    Linea 1.3
    It is indeed strange on the part of Government that they have made a policy decision to allow FDI in Retail but not for the Airline industry. Priority should be given to boost the investments for the industries which are ailing and not for the industries which are doing good.

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