FDI in Retail – Indian November Revolution 2011 – Contribute 3% to GDP Growth Rate
FDI in Retail – Indian November Revolution 2011 – Contribute 3% to GDP Growth Rate
FDI in Retail is November Revolution for 800m Farmers, 400m Non Farmers, 100m MSMEs and Artisans are fed up with multiple middlemen traders who add nothing to the value chain but wastage realize exorbitant price margin – when farmers in Punjab get Rs.2.50/- for a kg of potato, Rs.3/- for Cauliflower, Rs.5/- for Brinjal we in South Delhi pay Rs.20/- to Rs.40/- per kg for these vegetables. Artisans are paid Rs.1000/- for a Carpet that retails for Rs.50,000/- in Western Countries.
November Revolution will also benefit our MSME and Artisans who shall market their produce ‘Globally’ through network of Multinational Retailers.
Farmers Brotherhood support FDI in Multiple Brand retail that shall introduce latest Storage, Transport, Processing technology, Quality & Service Standards.
GOI must emphasize that Indian Economy can’t progress an inch when 800m farmers including farm labor don’t get remunerative prices for their produce and consumers are charged Many Times often for substandard products.
GOI must emphasize that India can no longer afford 30% loss of vegetables and fruits in transit when Productivity of Farms due to inadequate Irrigation & Inefficient use of inputs is already low.
FDI in retail would guarantee Assured Income to Indian Farmers and Stable Reasonable price to all consumers. Similarly Multinational retailers shall Integrate Indian market to rest of the world for both Quality Imports at lowest prices and Quality Exports at highest prices. For example Indian Exporters get Rs.60 per kg for Basmati Rice when RiceTech of USA retails for Rs.300/- per kg.
We all Indians should support GOI in making this November Revolution a grand success.
Exploitation of Consumers, Farmers, Wastages, Low Value added exports, Substandard Imports, Economic impact of Poverty & Hunger etc are huge drag on economy.
Most importantly Multinationals shall carry out operations in white money. All these shall contribute to Healthier Economy, Healthy People and contribute 3% to GDP growth.
FDI in retail will benefit farmers and consumers, assures Mukherjee
New Delhi, Tue, 29 Nov 2011
New Delhi, Nov. 29 (ANI): Amid mounting pressure from the opposition to revoke the decision of 51 percent Foreign Direct Investment (FDI) in multi-brand retail, Finance Minister Pranab Mukherjee on Tuesday assured that the government's move to allow foreign direct investment into the country's retail sector would benefit both domestic producers and consumers.
Speaking at the National Conference of the Elected Office Bearers of the Indian Youth Congress (IYC) here, Mukherjee said: "FDI in retail will ensure two major areas, it will make its contribution by building up the chain, core chain, by building up the back-end infrastructure. India is the second largest producer of vegetables, next to China . India is the second largest producer of fruits next to Brazil ."
"But not more than 10 to15 percent of these products are processed. Quite a substantial chunk of them are wasted. As a result then, farmers are not getting the price, which is due to them. Consumers are paying very high prices," he added.
The political upheaval over FDI in retail failed to subside today despite an all-party meeting, with a united opposition, joined by UPA constituents Trinamool Congress and DMK, stalling proceedings by remaining adamant on their demand for a rollback.
Last Thursday, the Cabinet approved 51 percent FDI in multi- brand retail, As per this move, many global retailers like Wal-Mart, Carrefour and Tesco can open outlets in India .
The Cabinet also decided to remove the 51 per cent cap on FDI in single brand format under which companies in food, lifestyle and sports business run stores. Owners of brands like Adidas, Gucci, Hermes, LVMH and Costa Coffee can have full ownership of business in India .
Mukherjee also touched on drop in gross domestic product, saying the situation was better than other countries such as China , the United States and Japan .
"If the Indian economy grows, as some scholars are projecting, that it would be less than eight percent. Yes, as Finance Minister I feel unhappy but when I find that Chinese growth has come down from 12 percent to around nine percent. Whole of Europe is not moving more than one and half percent along with USA and Japan ," said Mukherjee.
"Around eight percent GDP (gross domestic product) growth is less than our projection and expectations, but it is not that bad," he added.
Mukherjee admitted that containing the inflation rate had been a continuous upward trend and that measures needed to be taken to lower the figure.
"In the last two weeks of November, it (inflation) has come down to single digits to around nine percent and if this trend continues then it would be possible for us to end the year, which I am pointing out at around six to seven percent, and I admit it is too high for the people of India. Therefore, it will have to be reduced further," he added. (ANI)
Retail FDI to help boost exports: FIEO
Press Trust of India / Mumbai November 29, 2011
The Federation of Indian Exporters Organisation (FIEO) today said the foreign direct investment (FDI) in the retail sector will spur exports and called for more such reforms to prop up the sagging economy.
FIEO President Ramu S Deora complimented the government in general and the Commerce and Industry Minister Anand Sharma in particular for permitting 51% FDI in multi-brand retail and 100% in single brand retail.
He added that economic reform process should be re-initiated with full vigour as was done in 1991 for inclusive growth.
He also said the move will help farmers get better prices, double of what they get today, as it can avoid middlemen who now exploit farmers.
"Today, our farmers receive only 30% of price paid by consumers compared to 50-70% in developed markets," Deora said.
"A structured retail will therefore, enable better price discovery for farmers as FDI will be able to access the world market as efficient producers sellers linkage will be established which will be more remunerative for producers," he added.
On the FDI guideline of 30% local sourcing, Deora said the move will provide further boost to exports.
"Units supplying to large retailers will achieve requisite quality and price competitiveness to graduate to exports. This will largely benefit export of textiles, leather, gems and jewellery, handicrafts, jute, coir and other life style products.
"This will also create more jobs and enhance their capabilities as retail buyers take goods in bulk," Deora said.
FDI in retail: India Inc speaks in different voices
Sujay Mehdudia November 28, 2011
With the issue of allowing 51 per cent foreign direct investment (FDI) in multi-brand retail rocking Parliament on Monday, India Inc was seen speaking in different voices although in support of the issue.
FICCI secretary general, Rajiv Kumar, at a press conference, extended all-out support to the government move while on the other hand Confederation of Indian Industry (CII) called for a calibrated approach in introducing FDI in the retail sector in terms of the percentage and minimum capitalisation requirements.
Mr. Kumar said opening of the retail sector would create big employment opportunities in the country. He said those industry associations which are opposing the foreign direct investment in multi-brand retail have a vested interest. "This is just a fear that has been created for some vested interest. FDI in retail will be a game-changer like telecom. I see only positive impact on employment," he remarked.
However, CII said while it strongly supports the introduction of FDI in multi-brand retail trading, it recommends a calibrated approach for introducing FDI in the retail sector in terms of the percentage and minimum capitalisation requirements.
Some traders' associations are arguing that about 40 million employed in this sector would loose their earnings because of opening of big foreign retail stores. "In fact, foreign stores will generate employment and that will be higher quality employment. Small stores would also increase their employment to compete with the big retailers," he said.
CII said FDI in multi brand retail will give a boost to the organised retail sector, which positively impacts several stakeholders including - producers, workers, employees and consumers and Government and hence, the overall economy. Opening up of FDI can increase organised retail market size to $260 billion by 2020. This would result in an aggregate increase in income of $35-45 billion per year for all producers combined; 3–4 million new direct jobs and around 4–6 million new indirect jobs in the logistics sector, contract labour in the distribution and re-packaging centres, housekeeping and security staff in the stores.
FICCI FDI will bring about the development of a robust supply chain which in turn will integrate farmers and small and medium size enterprises into the modern trade process, resulting in knowledge and skills transfer, ensuring farmers and SMEs receiving higher prices for their produce/supplies, providing a more transparent mechanism for pricing, helping in planning their supplies.