Comments on: Parliamentary panel recommends ‘blanket ban’ on FDI in retail and ‘Cash & Carry;’ comes down heavily on big corporates for foraying into modern retail

By: Raja

Raja — Sat, 27 Jun 2009 04:10:12 +0000

Hi
FDI policy on retail should be focussed on futuristic aspects.In the huge population country,FDI should be relaxed in retail sectore to get following aspects
1)Growing demands from consumer..consumerism in india is seeking a quality and western/better lifestyle.it can see in emerging mass middle class and Above middle..modern retail in grocery and fashion difinetly canbe opt to those requirements.
2)In Fashion sector,if foreign brand enters into india,defintly they would sourcing locally to avoid the logistics cost tradeoff,tap the potential of indian apparel supply chain,applied their marketing tactics ..this will bring more foreign invesment into india in recession period,Lot of youths and graduates get a job in supply chain,logistics and warehouse operations,retailing…there is more opportunity to improve the efficicency in logistics and supplychain… More over,foreign retailers would source locally for their others national operations..this will create more job in apparel exporting..is the youth ready to work in pop and mom stores or local kirana stores…or..are un organized retailing giving those job opportunities..it is not good to maintain restrictions in foreign retailers into india as a future aspects…more over people are going to purchase according to their income..below middle class can be targeted by local kirana stores..can fulfill diverse needs of consumer..?

By: BOOBALAN. R

BOOBALAN. R — Thu, 25 Jun 2009 07:31:25 +0000

The parliamentary comittee should focus on ” RESTRUCTURING THE FDI ROUTE IN RETAIL ESPECIALLY”. since in india, after agriculture, retail sector only employs more people and contribute highly on indian GDP. So, by allowing foriegn giants like wal-mart, metero-AG etc.., will lead to get away of domestic retailers ( unorganised like kiranas stores). thus, restructuring of FDI in retail is very much importance in this scenerio.
government can go for this option:

1) more focus promoting indian brands ( 60% & rest foreign brands) in organised retailing. so that it will not affect indian products market.

2) imposing ban on fruits & vegetables, groceris in organised retail format. so, that it will not affect domestic vendors.

By: Dharnendra Doshi

Dharnendra Doshi — Sat, 20 Jun 2009 10:22:51 +0000

I wonder how much of these recommendations is based on actual economic impact and how much on vote bank politics. ICRIER report submitted few months back clearly said that entry of big players will be good in the long run for everybody.

Anyways modern retailers cannot dispel kiranas in India and will always have its own limitations.
Then why not use the advantages of modern retail.Indian Policy makers should focus on how to use these big corporates to improve the supply chain infrastructure in India which can bring overall development

By: Sudhir kumar

Sudhir kumar — Fri, 19 Jun 2009 05:31:48 +0000

The Parliamentary committes and various groups are at liberty to give their views regarding the entry of Large corporate identities as well as Global Giants of retail Industry through the FDI route . No doubt a Free for all approach might cause some sectors to suffer in the Economy. What needs also to be emphasised is the fact that these Major Corporate identities with their deep pockets and Extensive networks / Contacts as well as the latest Systems make quite a difference in the Market place .

Developing a Effective Chain of Warehouses and an Extensive network of Supply Chain management is not something that the Government or Small retail Shop operatives can devote time and energy on . THis area can be opened up only by the Major Companies and Multi national Global Players with their extensive networks and through the so called ” Cash & Carry” concept stores.

The Employment oppurtunities these would create and the savings that these formats would result in by way of an Extensive network of Warehouses and transit points as well as the savings on the Shop floor and the range of goods availibility this would result in are angles that need to be given due consideration.

Hope the views ennumerated above reach the policy makers and the major operators and give them something to chew on. In case someone wants to join issues you are welcome to contact the undersigned for further discussions.

Kind Regards