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.

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.

Rough Weather for Organized Retail continues

The latest salvo at the organized retail has come from the fire-brand leader Uma Bharti of MP.

She led hundreds of supporters in protest against the proliferation of retail chains promoted by corporates in the country. The immediate target of their attack was the Reliance Fresh store at Indore. They forced the outleft of Reliance Retail to shutdown.

The company representatives had already closed the shop before the rally reached its doorsteps. Uma Bharti still put a lock on its entrance to formalize the shutting of the shop.

The leader of the Bhartiya Janshakti Party - Uma Bharti - has set a 2 week deadline for Reliance Retail to close all its retail outlets in Bhopal and Indore threatening the organization with dire consequenses. She has also warned Walmart to refrain from advancing its plans of opening a chain of retail stores.

After UP, West Bengal, Kerala - a political leader in MP has stood up against the corporate and multinational organized retail players.

The voices from the small traders - owners of the stores in the unorganized retail arena of the country - have started getting support from some political leaders.