SUB : RETAIL FDI -- MISCONCEIVED IDEA. REF : FM barbs in 31/01/2014 Print Media News . Retail FDI is a political ploy of the sinking UPA govt. under a big deal with foreign retailers . Otherwise , just think over, why any foreign company may wish to help poor people of India without asking for .The big gain is planned for cheap inferior quality Chinese market and good trading margin on it for organised foreign retailers. Poor Indians will be paying through their nose as follows . If congress has brought the country to this miserable condition , why not retrieve a part of BLACK MONEY in Swiss banks . 1. Indias import bill will shoot up in unprecedented proportions . Exports which are already declining at around 20% which will go down further . Thus there will be massive trade deficit. Which in turn mean increased borrowings from multilateral world financial institutions which inter-alias means debt trap for country. It is important to mention here that only 30% is mandated to be sourced by FDI retailer from within the country . Retailers will be free to import the rest . Subsequently this 30% stipulation will also be waived for bribes to the powers that be . The single brand retail which India has already allowed and wherein this 30% stipulation too was agreed to , this condition is in the process of being diluted by the commerce ministry who promised the country that they will not allow out sourcing. 2. Indias manufacturing jobs will shift to China and trading jobs will shift to American and European countries . Indian industries will get huge set back if not total closure for the time being . Unemployment will rise which will give boost to crime rate . Retail FDI will generate huge unemployment in the industrial sector in the same way as has been done by it in US and EUROPE . Europeans can not compete with their own rates . Therefore outsourcing to china is must . 3. Billions of small traders will face the axe . Either they will have to close their shops or at least scale down their profits if at all they are able to sustain competition. Huge MEDIOCRE student population which depend upon their livelihood on family business or self employment will be roaming the streets indulging in unlawful activities . 4 With massive unemployment , purchasing power will go down . Big recession will grip the country for long time to come and it will be very very difficult for any govt. to come out of it . Living example of this is USA who are facing this situation today where everything including food is imported leading to unprecedented trade deficit with China , Mexico and other south American countries. Employment generating Fast Moving Consumer Goods (FMCG ) industry has almost totally closed . US is today facing massive UNEMPLOYMENT. So much so that now some states have made it mandatory for households to buy their daily needs from local haats or Kirana stores for some specified days of week . The US in now clamping on imports to control massive unemployment and recession. 5. Condition is no different in Europe which is also reeling under the impact of cheap Chinese goods . European countries are now working on new alibis . They are roping in soft targeted highly populated countries like India to make money through trading margins with cheap Chinese goods . Walmart and other big retailers import as much as 94% of goods from CHINA and sell through their outlets . Their assurance that they will procure 70% of goods locally for selling through their India stores is a myth . Post permission they will push for relaxation of local procurement condition and get away with it through bribes to ministers and bureaucrats . This has already happened in single brand retail , Coca Cola , PEPSI and others . Not only are they not targeting India through strategic trade push but also pressurizing India to contribute to their bankrupt economy through a grant of 10 billion dollar aid which Indian PM readily agreed to . In return , they are not willing to extend to India a liberal human resource exchange trade regime. On the contrary, they are tightening their immigration laws to prevent entry of INDIANS in their countries. 6. Above facts are known to every Indian politician , but the basic fundamental fact is that today every Indian politician is a sellable commodity interested only to pursue their agenda . Argument which Indian politicians extend in their favour is that FDI will boost the INDIAN economy . This is false and malicious argument given the fact that no body in todays context invests without gains . Why will foreign retail investors invest without associated gains to them ? what is the gain ? IT IS TRADING MARGINS WITH CHEAP CHINESE GOODS . 7. It is often said that multibrand retail will benefit farmer . This again is a misconceived argument . In fact reverse will happen . Most of Indian farmers are small time marginal people living hand to mouth carrying debt on their head always . Multibrand US and EUROPEAN companies have enough money- given the exchange rate parity- to loan Indian farmers to bring them in debt trap for generations to come . Indian farmers are so poor and their family ties/liabilities so strong that they can be easily lured into foreign debt trap . This is how that multibrand retail will be able to lure the farmers to establish a permanent grip on the INDIAN economy given the opportunity provided by the govt. in power. This fact is well known to the foreigners . They will extend petty small loans to marginal farmers initially which they will not be able to repay and then the prices of their produce will be decided by the retailer . The so called multibrand retailers are not coming to INDIA to do charity . They are coming to make money . Given the fertile brain they have , they very well know how to achieve their goal . 8 . Only short time gain may accrue to metro city dwellers initially . With a view to establish their credentials , retailers will bring down prices of some daily use consumer good and food items . This however will be short lived . Packages for the effluent class will be so designed that they tend to buy more than their requirement and waste . ADDITIONS. 1. Indias manufacturing jobs will shift to China and trading jobs will shift to American and European countries . Indian industries will get huge set back if not total closure for the time being . Wal mart and all other major stores are procuring 94% of the goods from CHINA and make trading margin . Since US has reversed its import policy and started reviving indigenous FMCG industry , these stores are facing enormous heat to keep their CHINESE commitments intact . Hence they are turning to INDIA through bribes . Their committment for 70% indigenous procurement is only farce for public consumption .They will get it changed/ammended later form govt by paying bribes as has been done in he case of single brand retail . All the contracts and conditions are false and changed later . 2. These stores will offset their high rental costs form high trading margins on CHINESE imports . 3. These stores will lend huge loans to Indian farmers initially which they will not be able to repay and fall into debt trap . At this point of time farmers will be dictated terms by the stores . 4. We must understand that we are citizen of this country first apart from our professions . We must also need to look into the countrys welfare since it also affect you, your family and relatives. Unfortunately media persons are passing through a period of total disconnect from countrys problems . They refuse to indulge into it . R N Kapil, 9968286444. 31/01/2014..
Posted on: Fri, 31 Jan 2014 05:04:39 +0000
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