FDI in Retail & Your Views
- Thread starter TheDreamer
- Start date
What's Indian culture? Isn't it the conglomeration of all thoughts & beliefs! Isn't it the home of all types of religions, paths & faiths! Isn't India known for tolerance and wisdom!
The value judgement on 'materialistic pleasure' or 'sage-like happiness' should be left to the people of the country. If the people of India are averse to the 'Foreign way of materialistic pleasure', they would surely vote for a leader like Hugo Chavez of Venezuela who will nationalise all the national treasure & ask the foreign investors to shut shop & leave.
A captain is as good as the team. Similarly, a country is as good as its people.
The value judgement on 'materialistic pleasure' or 'sage-like happiness' should be left to the people of the country. If the people of India are averse to the 'Foreign way of materialistic pleasure', they would surely vote for a leader like Hugo Chavez of Venezuela who will nationalise all the national treasure & ask the foreign investors to shut shop & leave.
A captain is as good as the team. Similarly, a country is as good as its people.
What's Indian culture? Isn't it the conglomeration of all thoughts & beliefs! Isn't it the home of all types of religions, paths & faiths! Isn't India known for tolerance and wisdom!
The value judgement on 'materialistic pleasure' or 'sage-like happiness' should be left to the people of the country. If the people of India are averse to the 'Foreign way of materialistic pleasure', they would surely vote for a leader like Hugo Chavez of Venezuela who will nationalise all the national treasure & ask the foreign investors to shut shop & leave.
A captain is as good as the team. Similarly, a country is as good as its people.
The value judgement on 'materialistic pleasure' or 'sage-like happiness' should be left to the people of the country. If the people of India are averse to the 'Foreign way of materialistic pleasure', they would surely vote for a leader like Hugo Chavez of Venezuela who will nationalise all the national treasure & ask the foreign investors to shut shop & leave.
A captain is as good as the team. Similarly, a country is as good as its people.
We can talk so many things my dear friend, but, practically we are suffering . We can't compare India with Venezuela.
Thanks . my bad that you could notice my comments in the quote.
1. money is not real problem for India's development whether its fdi money or fii money. what fdi and fii can do ...same Indian companies can also do. but problem is our govt is fdi friendly . RBI dont reduce crr and intrest rate citing inflation . now inflation will not happen with fdi's money ?
RBI action will simply stop Indian business men to grow and while FDI will flourish.
2. Yes computerization Indeed played wonderful role in India ' s progress in all sectors . but FDI ?
4. yes I have Idea but then what ...I still dont get how farmers will get better price (I have read what Pepsi co did in some of the state ...by selling potato at very low rate thereby putting farmers business out of play and they suffered badly. then pepsi offered them to buy thier potato what farmers could do? after striking a deal with farmers buying potato at low rate Pepsi started selling potato at market rate )
5. How come that explains better pricing of products ?
7. Yes hoarding is political issue because middle men cant hoard without political support . obviously some money would go to party for election
Govt taking this decision out pressure and yes on pressure from America.may be WTO and UN
There are lot reforms govt can do internally to boost Indian business and education.
why there are taxes on export ...they can remove all export taxes to boost export where as govt doing other way ...decreasing import duty and taxes.
Then are loan ...huge amount of loan are borrowed from foreign banks for various project which always stuck in some issue and never completed.
FDI is not solution to any problem which govt think would solved by FDI.
It is not just money which drives the growth but ultimate use of money which drives the growth.
IF fdi actually wants to help Indians then I have no problem but they seldom do .
1. money is not real problem for India's development whether its fdi money or fii money. what fdi and fii can do ...same Indian companies can also do. but problem is our govt is fdi friendly . RBI dont reduce crr and intrest rate citing inflation . now inflation will not happen with fdi's money ?
RBI action will simply stop Indian business men to grow and while FDI will flourish.
2. Yes computerization Indeed played wonderful role in India ' s progress in all sectors . but FDI ?
4. yes I have Idea but then what ...I still dont get how farmers will get better price (I have read what Pepsi co did in some of the state ...by selling potato at very low rate thereby putting farmers business out of play and they suffered badly. then pepsi offered them to buy thier potato what farmers could do? after striking a deal with farmers buying potato at low rate Pepsi started selling potato at market rate )
5. How come that explains better pricing of products ?
7. Yes hoarding is political issue because middle men cant hoard without political support . obviously some money would go to party for election
Govt taking this decision out pressure and yes on pressure from America.may be WTO and UN
There are lot reforms govt can do internally to boost Indian business and education.
why there are taxes on export ...they can remove all export taxes to boost export where as govt doing other way ...decreasing import duty and taxes.
Then are loan ...huge amount of loan are borrowed from foreign banks for various project which always stuck in some issue and never completed.
FDI is not solution to any problem which govt think would solved by FDI.
It is not just money which drives the growth but ultimate use of money which drives the growth.
IF fdi actually wants to help Indians then I have no problem but they seldom do .
Sorry dear... It was my understanding of markets & economics... 20 precious minutes' work to write the whole thing... nothing was copy-pasted... you can add to the CONS-list, if you like...
OMG... didn't read your comments in reply to my pointers...
1) No brick-and-mortar business can generate good profit in the initial years of its business, if started on a huge scale. The FDI in retail will take time to generate profit but the initial investment will be a huge boost for the Indian economy as a whole. If you go by the consolidated balance sheet of Walmart, their revenue is somewhere around USD 400 bn+ but the profit after tax is not even 10% of that.
2) The same questions were raised when computerisation happened in Indian public & private sectors. The reality is more jobs were created due to computerisation. But yes... illiterate people will lose job.
3) Just read about SCM. very simple... nothing fancy or rocket science.
4) Do you have any idea of what's the rate at which farmers sell their goods! It's not even 1/4th of the price at which you buy those commodities/ vegetables/ fruits.
5) In a capitalist economy, small businesses will always remain the targets of big business houses. But getting too big is sometimes injurious to health. Do you know why Daimler separated from Chrysler?
6) ...
7) How can hoarding be a political issue! It's more the work of middlemen.
8) These companies will actually make the guidelines better. Recently IKEA has asked the GOI to redefine SMEs. In IKEA's view, companies working with them will become bigger than what is defined by SMEs in very short time. So IKEA would have to constantly change the sourcing companies to follow the guideline of mandatory 30% sourcing from SMEs, which may deteriorate the quality of their finished products.
OMG... didn't read your comments in reply to my pointers...
1) No brick-and-mortar business can generate good profit in the initial years of its business, if started on a huge scale. The FDI in retail will take time to generate profit but the initial investment will be a huge boost for the Indian economy as a whole. If you go by the consolidated balance sheet of Walmart, their revenue is somewhere around USD 400 bn+ but the profit after tax is not even 10% of that.
2) The same questions were raised when computerisation happened in Indian public & private sectors. The reality is more jobs were created due to computerisation. But yes... illiterate people will lose job.
3) Just read about SCM. very simple... nothing fancy or rocket science.
4) Do you have any idea of what's the rate at which farmers sell their goods! It's not even 1/4th of the price at which you buy those commodities/ vegetables/ fruits.
5) In a capitalist economy, small businesses will always remain the targets of big business houses. But getting too big is sometimes injurious to health.
Do you know why Daimler separated from Chrysler?6) ...
7) How can hoarding be a political issue! It's more the work of middlemen.
8) These companies will actually make the guidelines better. Recently IKEA has asked the GOI to redefine SMEs. In IKEA's view, companies working with them will become bigger than what is defined by SMEs in very short time. So IKEA would have to constantly change the sourcing companies to follow the guideline of mandatory 30% sourcing from SMEs, which may deteriorate the quality of their finished products.
Sunny,
1st read the proposals under which FDI in retail is being allowed in India. I think you have huge apprehensions against them and are averse to any change in the environment. For the sake of discussion, I am replying to your queries/beliefs.
1) You have no idea of money circulation & supply in a system. When FDI will invest in India, foreign exchange will flow in. That will strengthen the value of rupee in the short term. Inflation happens when too much currency notes are printed in a country.
Moreover, let's analyse the scale to which Walmart (the biggest retailer of the world) & Future Group (the biggest retailer of India) can operate. Walmart's revenue is 440 bn USD where as the Indian group could only have 2 bn USD sales last year... Imagine the scale... 220 times!!!
2) Doubts will always remain when new developments are introduced.
4) First of all, it's damn lie that Pepsi can sell potatoes in open market. They can't.
Next is - 'predatory pricing' is a punishable offence. So no company can avoid facing the contempt of the court doing that.
5) When mobile telephones were first introduced in India, a mobile phone used to cost 60 to 70 thousand rupees. The cost of call was around 8-10 rupees per minute. Compare that to today's price!!! Competition has always brought the price down.
7) Politics is everywhere. The influence of politics can't be ignored in hoarding. But again, it's the middlemen who are the pioneers of hoarding. :lol:
The reforms that government can do is already taking place.
Removing export tax on all commodities is a moronic idea. The people who don't understand a bit about economics can only support that kind of idea.
Red tapism is a problem in all 3rd world countries. The loan taken from World ank or ADB are at lower interest compared to the prevailing interest in India.
FDI may help the government in balancing the fiscal deficit to a certain extent ( I can understand you have zero idea of what the thing is & why it is important to balance the books
.
It's surely not the money but the 'type of money' which is important.
Foreign direct investors are not altruists who want to help India without some ulterior motives. But the relationship can be symbiotic where both of us can be mutually benefitted.
1st read the proposals under which FDI in retail is being allowed in India. I think you have huge apprehensions against them and are averse to any change in the environment. For the sake of discussion, I am replying to your queries/beliefs.
1) You have no idea of money circulation & supply in a system. When FDI will invest in India, foreign exchange will flow in. That will strengthen the value of rupee in the short term. Inflation happens when too much currency notes are printed in a country.
Moreover, let's analyse the scale to which Walmart (the biggest retailer of the world) & Future Group (the biggest retailer of India) can operate. Walmart's revenue is 440 bn USD where as the Indian group could only have 2 bn USD sales last year... Imagine the scale... 220 times!!!
2) Doubts will always remain when new developments are introduced.
4) First of all, it's damn lie that Pepsi can sell potatoes in open market. They can't.
Next is - 'predatory pricing' is a punishable offence. So no company can avoid facing the contempt of the court doing that.
5) When mobile telephones were first introduced in India, a mobile phone used to cost 60 to 70 thousand rupees. The cost of call was around 8-10 rupees per minute. Compare that to today's price!!!
Competition has always brought the price down. 7) Politics is everywhere. The influence of politics can't be ignored in hoarding. But again, it's the middlemen who are the pioneers of hoarding. :lol:
The reforms that government can do is already taking place.
Removing export tax on all commodities is a moronic idea. The people who don't understand a bit about economics can only support that kind of idea.
Red tapism is a problem in all 3rd world countries. The loan taken from World ank or ADB are at lower interest compared to the prevailing interest in India.
FDI may help the government in balancing the fiscal deficit to a certain extent ( I can understand you have zero idea of what the thing is & why it is important to balance the books
. It's surely not the money but the 'type of money' which is important.
Foreign direct investors are not altruists who want to help India without some ulterior motives. But the relationship can be symbiotic where both of us can be mutually benefitted.
Beg to differ on your views on telecom... the valuation was so mouth-watering, most of the foreign telecoms came in a hurry to cash in... the Congress govt. surely made a scam to give licenses on '1st come 1st serve' basis... it's Mr. S. Swami & his PIL that helped to unearth the huge scam...
You have no idea of the real estate market in China... it's also highly expensive...
moreover the Indian retail chains (mostly big business houses with just a showpiece retail business) are just waiting in the wings to sell off their businesses to these FDIs...
You have no idea of the real estate market in China... it's also highly expensive...
moreover the Indian retail chains (mostly big business houses with just a showpiece retail business) are just waiting in the wings to sell off their businesses to these FDIs...
expected much more views on this thread with lots of ideas flowing in...
What will be the effect of 'FDI in retail' on the investment environment of India? Somebody has pointed out that the FDI may not be able to make profit even in a decade. But it may not be true. The profit that we see in the P&L account attracts tax in this country. The companies may channelise their revenue to different subsidiaries or innovate new accounting ideas to not generate enough profit. They do not have any burden to show profit here as they won't be listed in this country. But what will be the effect on common mass? How would the Kirana/Local shops survive in this dog-eat-dog world? How would it change the shopping environment of Indians? Will there be any shift of power from the manufacturers to the organised retailers?
I would love to see much more exchange of thoughts on this topic...
What will be the effect of 'FDI in retail' on the investment environment of India? Somebody has pointed out that the FDI may not be able to make profit even in a decade. But it may not be true. The profit that we see in the P&L account attracts tax in this country. The companies may channelise their revenue to different subsidiaries or innovate new accounting ideas to not generate enough profit. They do not have any burden to show profit here as they won't be listed in this country. But what will be the effect on common mass? How would the Kirana/Local shops survive in this dog-eat-dog world? How would it change the shopping environment of Indians? Will there be any shift of power from the manufacturers to the organised retailers?
I would love to see much more exchange of thoughts on this topic...
FDI (FIIs IN Indian Stock mkt ) > Retailers & kiryana stores are like retail investors in Indian stock mkts .
MPs are dying to bring there black money back in India with these chains No company want to invest in infra and other items which are of any use for India but all are ready to sell chips and potatos after buying it at 5Rs and selling is at 200+Rs
see the magic of this MMS govt Diesel and cng up by 10% approx and Britannia bread is from 16Rs to 30Rs no body taking note of that .
one can see Bhopal victims still crying for claim and these hopeless congress leaders instead of charging Anderson trying to allow his company to start his company again in india by canselling his Ban read somewhere.
Bhukhe Nangon ke desh mein paisa phaink kar wo in beimaanon ke madad se Imaan aur Asmat sab se khel kar bhag jayenge jab tak Hindustaniyon ko samajh mein aayega.
ITC make profit by disturbing atmosphere Imbalance here ( One full grown tree is needed to make 500 Cigrattes) Like that Cancer drugs are giving 1000%+ profits to MNC companies but no one dare to stop them Reason they know where they had put there money in which country
MPs are dying to bring there black money back in India with these chains No company want to invest in infra and other items which are of any use for India but all are ready to sell chips and potatos after buying it at 5Rs and selling is at 200+Rs
see the magic of this MMS govt Diesel and cng up by 10% approx and Britannia bread is from 16Rs to 30Rs no body taking note of that .
one can see Bhopal victims still crying for claim and these hopeless congress leaders instead of charging Anderson trying to allow his company to start his company again in india by canselling his Ban read somewhere.
Bhukhe Nangon ke desh mein paisa phaink kar wo in beimaanon ke madad se Imaan aur Asmat sab se khel kar bhag jayenge jab tak Hindustaniyon ko samajh mein aayega.
ITC make profit by disturbing atmosphere Imbalance here ( One full grown tree is needed to make 500 Cigrattes) Like that Cancer drugs are giving 1000%+ profits to MNC companies but no one dare to stop them Reason they know where they had put there money in which country
India's Wealth is on Foreign Hands.
We are puppet's always. Fight and talk so much within our country or ourselves. When there is a crisis or deviation in our system always we will adjust and forget.
This process is started in 1992, now we can't stop FDI, even if Indian Govt resist.
Always our Indian Govt will afraid of Rating Agencies Grades rather than there own people.
If FDI will not be implemented now, international pressure will be mounted on India on various factors.
Like ISO / QS standards (useless stuff), in olden days we have our own standards ISI (Our Indian Kitchen system is managed by our housewives is 100% powerful than this **** ISO and QS system). Nowadays international agencies looting money in the way of this kind of Idiot Certificates like ISO / QS. This is one example.
Like this so many ways Indian wealth is getting looted .......... still continues / will continue, as long as we are slaves...................
Let us wake up at least now, before our Mother Country wealth is eroded.
Nirahjan
We are puppet's always. Fight and talk so much within our country or ourselves. When there is a crisis or deviation in our system always we will adjust and forget.
This process is started in 1992, now we can't stop FDI, even if Indian Govt resist.
Always our Indian Govt will afraid of Rating Agencies Grades rather than there own people.
If FDI will not be implemented now, international pressure will be mounted on India on various factors.
Like ISO / QS standards (useless stuff), in olden days we have our own standards ISI (Our Indian Kitchen system is managed by our housewives is 100% powerful than this **** ISO and QS system). Nowadays international agencies looting money in the way of this kind of Idiot Certificates like ISO / QS. This is one example.
Like this so many ways Indian wealth is getting looted .......... still continues / will continue, as long as we are slaves...................
Let us wake up at least now, before our Mother Country wealth is eroded.
Nirahjan
Similar threads
-
Cellpoint ipo - A good opportunity to invest in mobile retailing?- Started by siyalikashyap
- Replies: 1
-
Retail investors opinion on Agri derivative
- Started by Chintamani Desai
- Replies: 2
-
Retail investors perception on Agri commodity derivatives
- Started by Chintamani Desai
- Replies: 4
-