FDI(Retail Market)

7/28/2019 FDI(Retail Market)

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FDI(Foreign direct investment)


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Prepared By:

1) Twinkle Kande

2) Sunil Malav

3) Priyam Patel

4) Apoorv Makwana

5) Nirav Parmar


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The recent decision of the government to allow foreign direct investment (FDI) in the multi-

brand retail sector will also help the real estate sector in the country. This will also increase the

demand for commercial space in the market.

At the same time, as the demand for office space will continue to be strong, fresh jobs creation in

the country will also see a strong growth.

Normally, when a company takes 1,000 sq feet of office space on rent, it employs around sevenpeople to fully utilize that space. That means, at least seven new people will enter the job market

and, on average , five out them will buy residential apartments.

Therefore, a consultant said that according to the thumb rule, the requirement of residential space

increases five times that of the commercial space used. Therefore, if the demand for the

commercial space remains strong, it will also continue to give a fillip to the residential real estate.


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Traders were agaiThere were around 2,000 shops in the Market and all the nst FDI in retail.

Traders who have invested a few lakh rupees will have to fight it out with giants who invest

crores in the business.

The traders wanted to the Government to rescind the notification and altogether give up the

move to bring in FDI in retail.

If the Government failed to listen to the voices of the people and traders, the latter would be

left with little choice but to intensify their protests.

Consumer activists feel that the clauses formulated by the Centre for allowing FDI in

multi-brand retail like the minimum investment stipulation of $100 million with at least half

the amount to be invested in backend infrastructure like cold storages and packing and 30 per

cent procurement from Indian SMEs, were good as it allows only genuine players to foray

into the arena.


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In retail Wallmart


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Favor


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India FDI Watch is building awareness and facilitating grassroots action to prevent the take-over of India's retail sectorby corporations. We are building Joint Action Committees (JAC) led by those who will be most affected, mainly; trade

associations, unions, hawkers organizations, farmers groups and small scale industries.

A National Streering Committee has formed in Delhi, of which India FDI Watch is a facilitator and member. TheNational Steering Committee has come under the banner Vyapaar Rozgaar Bachao Andolan. Similarly in Mumbai, IndiaFDI Watch is a chair and member of the Vyapaar Rozgaar Suraksha Kriti Samiti. In Bangalore, India FDI Watch is akey member and coordinator of the Karnataka Joint Acton Committee Against Corporate Retail.

Showing utter disregard to democratic institutions and expressions, Indian Govt. notified its decision to allow FDI inmulti brand retail, late evening on a day retail trade unions and majority of political parties observed nationwide strike toprotest against such reform policies.

All major markets would keep their shutters down throughout India. Markets in Kerala and Himachal Pradesh wereclosed on 18th Sept to oppose FDI in retail. Markets of both states will again remain closed on 20th September. As perreports of various trade and hawkers associations, there would be total bandh in other states as well including Punjab,Rajasthan, Uttar Pradesh, Uttarakhand, Madhya Pradesh, Orissa, Bihar, West Bengal, Assam, Gujrat, Maharashtra,

Karnataka, Andhra Pradesh, Goa and Tamilnadu.


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Our opposition is to the way the reform has been forced upon the country by the UPA. If theCentre had not acted as a dictator, we may have welcomed FDI in retail, said Badal junior, whohas supported the change in the past and had, in fact, written to Commerce Minister AnandSharma in 2011 welcoming FDI in retail.

Wal-Mart already has a presence in India, albeit as a joint venture with Bharti (which manages the retail end of the

business). Majority ownership is the thorn in the flesh for those opposed to foreign retail

The small sector is unlikely to remain unaffected if big retail chains enter the Indian market. But from the perspective

of the Indian economy the gains to, or protection for, any particular group should be viewed in the context of losses or

costs to the country as a whole.

Another concern is the degree of buyer concentration in the hands of global retailers, especially with respect to the

food supply chain. Given competitive forces, it is far more likely that suppliers of food products will experience

substantial gains.


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Documents

FDI(Retail Market)