Smart Baaniya Vs Aam Aadmi...

    Where a huge dispute is going on for FDI in Retail Industry in India, a Baniya is still using its smartness in looting the Aam Aadmi. The 50 million traders on strike last week exceeded India's entire organized labour (around 30 million). Shopkeepers simply cannot be called unorganized or poor. In my local market, shopkeepers say that even the smallest shops are worth a crore. Today the unorganized Retail Sector is continuously saying that their business will come to an end due price-offs by Global Ratailers, but no one says we will improve our services and offer low prices to the common man so that he can get rid off the inflation. Dominated by banias, some of the small shopkeepers are notorious for cheating customers through adulteration and fiddled weighing scales. They are also notorious for evading sales tax and income tax. The politicians who oppose foreign retailers are promoting the Bania against the Aam Aadmi. Because politicians always woo vote banks and financiers. Banias constitute a highly organized vote bank (totaling 50 million in last week's bandh).

         In today's situation when India has the fiscal deficit of around 74% and Aam Aadmi is getting grilled in inflation, Retail FDI becomes the most important issue to cope up this situation. So, Baniya need not to worry, they have even better opportunities to improve themselves and being competitive.

Sales Stumbling In China, India

New-vehicle sale in two of the worlds most recently consistant growth markets,china and india,are slowly as markets incentives recede and the drag of the worlds economy finally may be hitting.bloomberg reported today that october sales in china hits their slowest growth rate in 5 months after the phase out in two years government vehicle purchase inducement and the cost of auto loans increased.wholeseller deliveries in china increased just 1.4% in october,the slowest rate since may,and many automakers are resorting to increase incentives to stoke demand.

Indian Economy- Still the topic of concern...

Second quarter results of the current fiscal year have shown that Indian Economy is still under clouds of questions..??? Is it really growing..?? Is the common man going to sleep with no tension on his mind...???
Answer lies in these facts-

• Current GDP- 6.9%, lowest since the first quarter of the fiscal year 2010-2011
• Annual growth rate of the Core Sector- 0.1%
• Fiscal deficit for the budget of 2011- 74.4% (Courtesy- The Economic Times)

These facts clearly show where are we moving..!!!

The Services sector has been proven to be the only highly growing sector. The Indian policymakers are now seen keen on this issue. The Retail FDI issue is the one of the step towards fastening the economic growth. 

The high inflation rate and poor performances by the core sectors of economy are needed to be looked carefully. 

Impact of FDI in retail

Huge investments in the retail sector will see gainful employment opportunities in agro-processing , sorting, marketing, logistics management and front-end retail.

* At least 10 million jobs will be created in the next three years in the retail sector.

* FDI in retail will help farmers secure remunerative prices by eliminating exploitative middlemen.

* Foreign retail majors will ensure supply chain efficiencies.

* Policy mandates a minimum investment of $100 million with at least half the amount to be invested in back-end infrastructure, including cold chains, refrigeration, transportation, packing, sorting and processing. This is expected to considerably reduce post-harvest losses.

*This will have a salutary impact on food inflation from efficiencies in supply chain. This is also because food, which perishes due to inadequate infrastructure, will not be wasted.

* Sourcing of a minimum of 30% from Indian micro and small industry is mandatory. This will provide the scales to encourage domestic value addition and manufacturing, thereby creating a multiplier effect for employment, technology upgradation and income generation.

* A strong legal framework in the form of the competition is available to deal with any anti-competitive practices, including predatory pricing.

* There has been impressive growth in retail and wholesale trade after China approved 100% FDI in retail.Thailand has experienced tremendous growth in the agro-processing industry.

* In indonesia, even after several years of emergence of supermarkets, 90% of fresh food and 70% of all food is still controlled by traditional retailers.

Fear of Suppression..!!

Its the hot topic nowadays whether Indian system will let foreign Retailers survive here..!! Everyone right from the highly educated professional up to the thumb-king chatter, can be found discussing about the so called ILL EFFECTS on Indian small retailers due to the open entry of Global Retail giants like Wall Mart, Carrefour and Tesco etc..
But the fact behind the scene is the extreme fear and psychological pressure that has been created on the minds of Indian Retailers as they are neither in mood to change themselves nor are capable to change..!! Today's alert customer only wants the best product and service at the reasonable prices which Indian Retailers aren't willing to give. It has been continuously said that Small firms will get closed down and thousands of people will lose earning..??? Is it for sure...???
When we can face or challenge any of the worst calamities in our country right from the Wars, Tsunamis why cant we face these foreigners..??? When we talk about the globalization, where is its practicability..?? Government of India has certainly not done anything good to improve economy, so when something good has become possible, why are we not accepting it..??
Improve your supply chains, improve your offerings, bring innovations, use technology and see where you will be...!!! Why blame others when we ourselves cant do anything better..?? When these foreign players can gain profits by operating at lakhs of miles apart from their own destinations, why cant we do it by sitting at our own homes..??
Its just a fear of suppression that has raised the noise....!!

Some of the Retail FDI proposals made by the govt. India

   Cold storage facilities for farmers to prevent post-harvest losses.

   In case of FDI’s more than 51%, 30 per cent of product sourcing would have to be done from village and cottage industries as well as small and medium enterprises, so as to benefit this sector.

   Hoding that only 53 Indian cities with a population of 10 lakh and over would attract FDI proposals by virtue of the policy provisions, govt assured that small retailers would not only coexist with big players, but also grow by 13 per cent in the coming years.

   The decision on FDI in retail has come close on the heels of another major policy rollout -- the National Manufacturing Policy -- which envisaged increasing the manufacturing sector's share in the GDP from 16 per cent to 25 per cent in 10 years and create 100 million jobs.

Economic and Governance Reforms is Must

In a recent statement by Mr. Mukesh Ambani, Chairman, Reliance Industries, he has said that India has seen the extravagant economic growth in last few years. But the traditional style of governance has been the biggest obstacle in the country's overall growth. Young and worthwhile population lies in the age group of 20-35 yrs and they need to highly motivated for the applicability of country's economic growth.
Hence, it is must for India that style of governance and the economic policy should be changed. The focus should be on the improvement in Education and Healthcare systems, as these two are the only ones responsible  for keeping growth in the flow. For this achievement, Globalization along with Liberalization is to driven and so governing policies need to be modified and advanced.