FDI IN RETAIL

The Indian Tamasha

The flow

Introduction Why India should avoid FDI? The MNC effect Pros & cons On the bright side On the dark side

An investment is..

The commitment of money of capital to purchase financial instruments or assets in order to get profitable results

An investment becomes foreign investment when..

Investment done by citizen and government of one country invests in the industries of other country.

First things first

FDI means Foreign Direct Investment

Mainly

dealings with monetary matters .

They

acquires standalone position in the economy.

Their policy to remove rivals

Sell products at low price Competitorshut down And then companies like Wall-Mart will increase prices

Introduction to modern retail

Super markets Hypermarkets Malls

Government stores Kirana stores

Weekly market
Barter system

With FDI in retail, shops like this will disappear

Why India should avoid FDI in Multi - brand Retail?

End of role to Distributers and Brokers as well as labors. " Contract Farming".

Manufacturer will remain under constant pressure to keep the production cost low.

Multinationals enters into business ONLY for PROFIT NOTHING ELSE.

EMPLOYMENT UNDER EXISTING SYSTEM

Farm labours Dalals Brokers Transporters Tea shop owners Hotels Dhabas Shop keepers

AFTER M.N.C. TAKE OVER

All works in farm by machine under corporate farming Automatic transfer and packing by machines.

Sale to customers through chain of departmental stores.

Large number unemployed. of self employed to become

MNC
Contract farming

Collection of Agriculture products

To own factory

To customer

To own dept. Store

REQUEST STOP FDI IN RETAIL TRADE

If Domestic Retail Trade is allowed by Big MNCsLarge Scale Unemployment. A new class of unemployed called Unemployed Traders will join the existing force of unemployed persons. Everybody knows how Big Fish eats away small fishes.

Keeping the experience of other countries in mind, Govt. should not take any such decision for which the whole country and coming generation will have to suffer.

Advantages

Inflow of equipments. Innovations. Export growth. Access to global market. Reduced cost, wider choice and improved quality.

Disadvantages

Crowding of local industries. Loss of control. Conflicts. Exploitation of resources. Socio cultural effect.

NOW ITS INDIAS TURN

It is unfortunate that Central Cabinet has given approval to FDI in Retail Trade.
Shift of Major retail trade to these big companies will render small traders & their employees unemployed. After establishing control over purchases & sale these companies will start dictating.

Employment issues.

ON THE BRIGHT SIDE

According to the P.M-

It will help introduce new technologies in agri-marketing, and will "benefit farmers and consumers.

It would benefit the consumers, producers (farmers) and small and medium enterprises (SMEs) and generate significant employment.

The change

Current size of organized retail in India stands at close to 6%7% of total retail market.

The new retail market is estimated to grow to 21% by 2020. Game changer for kick-starting economy

The change

Major investments can be expected. This can also be considered as one more step towards encouraging those who have been sitting on the fence to invest in India.

Allaying the fears of small players

Organized retail and kiranas can very easily coexist, as they do in both developed and developing economies around the world
Raj Jain, chief executive and MD of Bharti Walmart

Benefits for the common man

All will be benefited. Farmers will get the right price for their produce. New employment opportunities will emerge.

On the dark side

I want rain, not FDI", said 43-year-old Harjari Ram, a farmer from Rajasthan.

Losers

Majority of the Indian small-scale industries or manufacturers will be forced to shut down Majority of small traders and shopkeepers will end up closing their shops. Indian manufacturing jobs will be lost Lower middle class workers would end up losing their jobs as the Illiteracy level among them is very high.

Gainers

Real estate agents and developers

Banking sector

In the conclusion

Though the FDI has its own benefits In a long run this will be harmful

Thank you..!!