Saturday, December 3, 2011

FDI put on hold!!

It appears that the Union Cabinet has put the decision of FDI in retail on hold, for now i.e. the MNCs like Wal Mart will have to wait a little longer before being able to set store in this India.

The Government of India which is currently a coalition government is once again on the backfoot. It has once again had to roll back a decision taken by the its biggest coalition member - the Congress Party. This was conveyed to the media by Ms. Mamta Banerjee, the supremo of the Trinamool Congress.

She said
"Pranabda sought our opinion on the issue and we told him that the Trinamool Congress remains firm. He informed me that the cabinet decision on FDI entry in retail will be suspended until and unless a consensus is evolved"
The government has had to face the ire of the people and a very stiff resistance from the opposition parties. Even some of its allies, including the Trinamool Congress, were against it on issue of FDI.

The traders in the country had called for a nation-wide one-day bandh on the 1st of December, a call that had received overwhelming support from traders across the length and breadth of the country.

All-in-all, the end result is that the government has finally given in to the public demand and put FDI in retail on hold.

Wednesday, November 30, 2011

FDI Decision faces lot of resistance.

The government's decision to allow FDI in the retail sector is facing a lot of resistance. The resistance is from almost all quarters.

Parliament has not being able to do business since the decision of the union cabinet went public. The opposition  - NDA and the Left Front - are going all out against this decision. Some opposition have gone ahead and said that they will go to the extent of violence against the retail outlets that come up in accordance to this decision.

So much so that, some of the alliance partner of the ruling coalition - members of  UPA - have also voiced their opinion against the FDI decision.

A nation-wide bandh call has been given for the tomorrow - 1st Dec 2011 - on this issue.

Let us see what happens.

Sunday, November 27, 2011

What FDI in Multi-Brand Retail means to Indians?

A lot is being floated in the media - both good and bad - about the Indian Governments recent decision to allow up to 51% FDI in multi -brand retail.

But, what does it really mean for us Indians?

Multi-Brand Retail basic is a fancy name for big shopping plazas or malls, products from different manufacturers will be available for sale under one roof. Malls are the latest in fad in the economic scenario. Big Bazar, Magneto, City, Reliance Retail are some names that are already doing business in India. These the big players that chains of stores in several cities.

Every city also has some individual names that are available locally.

So, what is the fuss all these players are already doing business in India. Well - the government just opened the Indian shores for foreign players to come and set shop in India. Wal-Mart has already partnered with Bharti  and has already started building its wholesale distribution outlets in several cities.

With the Cabinet having decided in favour of FDI in retail being, Wal-Mart and other similar retail outlets are likely to come-up across the country soon, if the government does not bow down to the pressure from the opposition parties and local small shop-owners.

Thursday, November 24, 2011

Government of India to allow FDI in retail

Union Cabinet - today - approved 51% FDI in multi-brand retail sector.

Way back in 2008, the government had put a hold on FDI in multi-brand retail, after there were wide spread protests against the large scale organized players entering the retail sector. The retail sector in India is currently dominated by the many small shops that can be seen in every neighborhood.

Way back in the 70s and 80s, the government under the stewardship of the then Prime Minister Indira Gandhi had given a lot of emphasis to self-employment and encouraged the Indian masses to setup their own enterprises. As a result, a large number of small shops that are now referred to as the mom-n-pop stores came up.

The advent of the large-scale players in the form of organized retail made these small entrepreneurs insecure, leading to large scale protests against them.

But now, the government has cleared the way for setting up large scale multi-brand retail outlets by allowing 51% FDI.

Let us see what happens, now.