Reliance & other present corporate is too small comparing to Walmart & other Foreign company. No Competition possible, Middleman delete means delete of entire Mediator between traders & farmers. What about wall mart ? Foreign Middleman require Indian Middle man not require ?? Can u calculate MIDDLEMAN In india ?? They all have their employment or livelihood on this Retail. more than 4 - 5 crore Retailer is going to effect due to this decision. No new business generate after FDI come in india. They will share retailers business. If only 30 % present business of retailer goes to Foreign company than it will be net loss of 30 % profit directly. 1 lacs earning reduce to 70 thousand. Entire Structure going to effect so study case first than post such article.
I have a study of 10 years in RETAIL.

I request author to just search in google regarding Wal mart effect in Retail sector in all world economy. U will find result why Majority Parlament members oppose FDI in retail

In Indian economy, retailer is second largest after farmers, "This is not TRY & if fail than we will change policy" Once FDI in retail sector come than only result will be there and no dobut it will be negative result in INDIAN ECONOMY

Read Barack Obama Twitter account. he twitted before few days. "Please purchase product from local dealer or from street dealer"
Getwell soon

napster, our government's pre-condition is '30% of all raw material has be procured from India's small and medium industries.' But what about other 70% ? Is it going to source 100% of it from India or is allowed to import the rest 70%? (As per WTO, you cannot stop them from importing.)
Don't you think China and other 1st world countries will dump their goods in India ?
Our PM is saying that it will bring new technology to our country, don't you think Indians are capable for that? In 1980s, Mr.Sam Pitroda and his colleagues brought Telecommunication Revolution, Mr.Kurien also, brought White revolution, without any support of Foreign companies. Don't you think, we can bring some changes in Refrigeration and food security sectors? Why we should open this field to Foreign bulls?
If government can't provide refrigeration facility then we can open this field to Indian entrepreneurs.

{ Fact about Walmart :- Walmart is one of the biggest importer from China. If you separate Walmart as a Country it becomes one of the top 10 largest importer country from China in the world.}

Thank god! No one in India protested outside my home for using Colgate, Nivea, BrylCream, Saville Row, Dr. Martens, Honda City and Johnny Walkers. Cheers!

@ GK, Colgate or any other mentioned brand has nothing do with protest against FDI in Retail.

I 100 % Agree with Lalit

There is a Big question of Retailer. Only 20-30 % Effect in Retail sector will lead to business losses.

Globalization in Retail sector leads us to greater economics & Social problems

A Well Balanced Indian Economy going to suffer due to this FDI in Retail

Still date whatever goods we import from China are mostly related with technology. The importer is a Retailer in India. So by selling this products they gain & profit. Profit goes to Our Retailer, depended on retailer & labor have a benefit.
But if wal mart sale this product direct in market imported from china than benefit goes only to Wal Mart & Chinese manufacturer. If retailer earned than he expenses this money on his livelihood or for his family, Retailer is also a consumer for other product so he is going to purchase other necessary product from other retailer so investment remain in India. But if wal mart earned money than where Wal mart going to expenses this money ? Wal mart come to India for profit purpose just as retailer, So Foreign Middleman leads us to many other problems.

No Study, No Discussion, "Our PM announce FDI in Retail"

There is no logic to support FDI in retail

As u reply, 51 % profit goes to out side india while 49 % goes to Indian Share holder.

It necessary to allow FDI In Retail ? Profit the company earned share retailers profit ! 4 crore people employed in Retail Sector. FDI in Retail will disturb all of them. Is it benefit to Indian Economy ?
I visited yr profile today. Yr age is 21 years. Have u any experience of Retail Sector? People employed there ? What will be losses to Retail Sector ? Please go today in Retail Market & see how competition is there. Almost 400 - 500 Shops for 1 lacs people only in Grocery sector. Did u mean to say that there is no competition in Retail Today ?

You haven't any answer of Mr Lalit points & also my points. 21 yrs younger person have a hot blood but & but not deep thinking about Retail Sector at all.
Creation of job must be new one to developed our Indian Economy. Here we want to create job but this new job creation going to effect whole Indian Economy structure - 5 crore Retailer.

FDI in retail trade

Dear Sir,


51% foreign investment in multi-product retail trade has created a furor; economists, political activists and the so called well wishers of the country and its people have raised their voices in different ways to protect the interest of the common people without caring their present economic conditions.

The high voltage script on 51% multi-product foreign investment in retail trade, to many, is a political gimmick and not economics; to others the open door policy in retail trade will lead to unemployment and swallowing of small traders.

A farmer sells his produce at Rs.2.00 for which the ultimate consumer is to pay Rs.20.00. Who grabs this big chunk of exploits? When there is a bumper crop, the smile of a farmer turns to tears when he sells his produce at a throw away price; the middleman becomes the beneficiary. Is it not a bad economics?

From the village market or mundee, the produce travels and changes hands; the prevalent system mainly generates employments in unorganized sector at different levels. The farmer has no access for direct marketing. We are not concerned about them but cry to protect this middleman sector with a fear of throwing them out of the proposed system and to unemployment. We simply fail to appreciate loss in multiple transportation points, pilferage and handling loss; lack of preservation of food grains, vegetables and fruits are not reviewed.
It has been announced that 51% foreign investments will be used for developing cold storages, supply chains and retail stores. The procurement 30 % of products from SME sector will regenerate the market for this sector. The employments creation in retail trade chain cannot be ignored or overlooked; this aspect has not been talked about.We have closed our eyes regarding our poor infrastructure in terms of cold storage, warehousing, inadequate quality control and testing system, inefficient supply chain and involvement of middlemen and high transportation and inventory carrying cost; the money supply can revamp the process of economic growth.

We have also ignored the scope of processing industry in fruit and vegetables, meat and poultry, milk and milk products,, fisheries, plantation, grain processing; the opportunity for large investments in food and food processing technologies, skills and equipment, especially in areas of canning, dairy and food processing, specialty processing, packaging, frozen food/refrigeration and thermo processing may lead to growth in rural and semi urban region.

India is the world's second largest producer of food next to China.
The entrepreneurs in fragmented food processing sector are small in terms of their production and operations, and are largely concentrated in the unorganized segment. Their linkage with retail trade segment and awareness of modern technology will create new avenues. 30 % reservation for their produced goods is not a mean insurance against sale.

In West Bengal the proposed liberalization in retail trade segment may create immense potential for floriculture, horticulture, fruit processing, sericulture, aquaculture, development of medicinal plants, potato processing, pulses, jute, oilseeds, leather and leather products, food processing, vegetable preservation and processing, edible oil, gems and jeweler, rubber, palm oil, tea, confectionary; cold chain/warehousing, transfer of technology, strengthening infrastructure, raising productivity and generating new employment opportunities will be the added benefits.
The planners in West Bengal should look for a balance between the requirements of gobalisation and the needs of self-reliance; direct foreign investment proposal in retail trade should be treated as an economic objective and not as a political weapon. Earlier administration has mingled politics with economics; learning from past experience we should take the competitive advantages of foreign direct investment in retail trade. The overall objective of the State is to boost economic growth, improve physical and social infrastructure and reduce unemployment and poverty.
Political compulsion should not deprive the people of West Bengal of the benefit of economic liberalization of 1991 on India.

Yours faithfully,

Amar Lahiri Majumdar,
Kolcutta

26/2,PGM Shah Road Kolkata 700033 9831291699

lalitganatra : i completely agree with our point specially our point about farmer that foreign company will never look for the farmer with smaller productivity .

I completely agree with napster.

Oh, Lord!
If age is being considered by Mr. Lalit, then, evidently, all our ministers who have chosen this move are older than Mr. Lalit, and, hence, according to his own theory, more knowledgeable and far more experienced. ;)
And, not to forget, these ministers are helped by a no. of economists, IAS officers, etc. who maybe of our age. :D
So, it's really about who can see beyond the horizon, whether in their 20's or 60's.

It is really sad to notice "Mr. Ankit" (who seems to be a responsible citizen of our nation) make such indecent and kiddish comments over the author (Napster) on account of age.
Where does age come into play? Mr Ankit its never too late to learn something new, so you should take it as a deliberate attempt and should adore Napster's ideology for being so thoughtful and sincere.
Even you know that Napster has provided with firm and evident reasons regarding the topic of discussion and you are left with nothing to confront, but that should not agitate you to make comments on age or generation factor. Be magnanimous, perhaps the least thing which I would like to suggest you.
Apart from that, it would be better to accept changes and cohere with them for a better society. Points mentioned by Napster are quite logical and optimistic. I haven't gone through the nitty-gritty of this issue neither have I been in retail market for 10 or 100 years, but I am not resistant to change as you (Mr Ankit and Mr Lalit-with due respect) seem to be. I have learnt one thing in life that changes are destined to happen, transformations are an integral part of life and so we should accept them and come up with some optimism. There should be an urge from inside to take some calculative risks keeping in mind, the development and integrity of not just a nation but the entire human fraternity.
Thank you.

i completely agree with lalit.its not about survival of fittest but its about survival game betwn richest wallmart vs poorest indian kirana shop owners.we must remember kirana owners are not outsiders if they dont survive they will not go to china rather it will create a huge unemployment & poverty problem greater than what it is today.will walmart go to farmers who go to the market daily with just 10 kg of cucumber? obviously not.so large producing farmers will benefit and poor small farers,the bigger portion will be there where they
are.if middleman dumps farmers it is failure of govt.inspection authority.so govt. wants to wash there hands by allowing fdi in retail by leding us to the age of economic slavery.

I think FDI should allow 100%. & i hope it'll bring lots of hope for Indian people & our economy will be strong..so i hope Govt should decide positively not negatively....i support didi "Momta" Jai ho India

According to our Government:
- 30% of all raw material has be procured from India's small and medium industries
Obviously the cost price of this raw material (especially agricultural products) will be extremely low as compared to its selling price. What if this part is exported to their native countries and not to our country?

Is there any policy that Products should be sold under the same price internationally.
It'll be like buying petrol in Riyadh at Rs. 8.5/ltr and selling in India at Rs. 75/ltr.

If the govt. allows 51% FDI in retail sector the 44million people who were employed in this sector will affect.

@naveen_prakash well u see that is optional because our dear and so called economically literate friend napster here thinks in a competitive way. So what if they have small productivity, so what if they suffer just ignore them and take only good quality goods and then after some years and some more reforms he will say so what if we have to import fruits and vegetables from other countries if our farmers are incompetent to produce good crops then what is the harm in getting it imported and then he will again say lets just have everything privatized and close all the public sector enterprise and give their work to some private companies and then we'll be fully "liberal" . U know what i have a suggestion why dont we just privatize our defense services too so that there will be competence between all and we'll have increased amount of security and then we dont have to fear about terrorist attacks, or y dont we just declare ourselves as a capitalist economy. That would be a much better option. Seriously do u ever think before writing or u just write to be famous.

PS: 51% fdi in retail is just the tip of iceberg, u never know what is coming and please get a medical checkup kiddo if ur blood boils for every comment then u will become an erupting volcano in just a matter of seconds.

hey napster u sound convincing to me buddy. hope the new change will bring good fortune to our great country.

Reliance & other present corporate doing the same thing as the FDI retail doing. instead of multiple middleman .Single middleman looting farmers as well as customers. Our VAT help them to save lot of tax that's all.

It is shame to hear that Big and great country like India is not having infra structure to work as a good middle men between the farmer and customers and help to grow up.

Our people creating strategy and technology like ERP solutions for MNC’s including all this FDI retailers to do there business well .But we are not doing any thing for our country.

FDi in retail should come. It benefits country+people. We will be secured from all the milawati food and increasing prices.

51% FDI in retail sector would create slaves like the East India Company made when they first came into India. Though it would provide jobs, but on the terms and conditions of the foreign investors making us do what they want. Slavery jobs will be produced but the profits will go to the foreign investors only.

There will be no reduction in the prices for the consumers as the profits that used to go the middle men would now land in the hands of the foreign investors leaving Indian middlemen with nothing but to take the job given by these MNCs.

This decision will also effect the entrepreneurship capabilities of the youth of this country as most of them would be brought up with the idea of getting a job under such MNCs. The will to do something big and to create a MNC himself that could invest in other countries would really be demotivated.

Although farmers would gain from these MNCs, but these gains for the farmers would be restricted to a maximum of one year. The foreign investors initially attract farmers by offering them handsome price for their grow and sign a bond with them. The farmers being illiterate agree to the bonds from where the exploitation process starts. The MNCS then force the farmers to sell their grow at a price which they offer.

The people who will be befitted the most by this move are farmers and the consumers. If one is thinking about the local traders then one also should think about the effect of rising food and other commodity prices on the lifestyle of common people in India. Inflation has been on an all time high. To control the inflation among many other key reasons, this is one of the very few correct moves which this government has even thought of!

also completely agree

After going through,very carefully ,i find that both main authors have certain valid points on FDI (for & against ).However ,we ignore the lessons which HISTORY provides us .EAST INDIA COMPANY too came begging to do good for
our masses ,but ultimately what happened ? So far as different countries r concerned ,they have very different kind of GOVERNANCE ,different kind of SELF-PRIDE ,& a different kind of COMMITMENT for their OWN COUNTRY which is lacking ( unfortunately ) in us .We were BEFOOLED earlier by EIC now by own leaders ( ironically dealers ).

F.D.I. is better invedtment of retail . A Lot Of Job.

napster: I totally appreciate ur article n d comments u ve posted... its not about d age....its about d way u see things... jst want to say... every good thing has its own advantages n disadvantages...wht we ve to do is... take the best out of it...
thanx...

you dumbheads.......what progress we have made in 65 yrs.....if we can,t store our own food materials....and need someone else to take care of it..

@Napster Baba
I am agree with you.Some are saying that why we should depend on foreign companies for improvement of our country's condition while we can change it to change our own perceptions? If it can be then where is the people's perception till implementation of fdi?
By allowing FDI we would be in profit like china,russia etc which are more developed than India.

FDI in retail sector is benefit for INDIA. I am from ludhiana we are in apparels business . we make all types of clothing from young ones to elders. And our main buyer is wall mart . But due to U S and european markets finiancial crises we are cut short of orders by wall mart. but now thanks to 51% FDI in multi brand sector . that will allow us to supply goods to wall mart again . in the first stage there will be 15 wall mart store in india.and as the years progress the number will increase gradually. This multi brand FDI will allow us to increase business with other players in the market resulting in increase of our home production more employment more infrastructure. WALL MART want goods quality products at cheap rates . if it can get it from india then why buying it from china.

Hey Napster jst think about the point that was being listed out by many ppl including lalitganatra,lalit and ankit.The farmers which have small productivity and the ones which have large productivity but that of 'B','C','D' grades wont even be considered by giants like Walmart ,Tesco .Walmart will only buy goods from the farmers who produce good A-one quality goods with large productivity.They wont be wanting B grade or C grade goods produced by small scale farmers thus the small scale farmers would remain neglected making them poor unless the big giants also buy lower grade goods from the farmers.
There's one more problem ,that of the middlemen ,there are millions of middlemen who have this as their profession all of those people will suffer and ultimately will be left unemployed!
Indian government must increase opportunities for the poor farmers and not increase competition for them or else the poor will become more poor unfortunately

If you know about WTO norms then you should also know that there are a lot of safeguard measures in it as well. One of them is the anti dumping law. It has protected countries from dumping till now and entry of foreign players will not change it.