Indian Government announces FDI in many industries!!

[Abingdonboy]

You guys need to define reform first. I dont think allowing certain more percentage of FDI in retail sector will mean any big difference to overall economy. Yes it will bring few billion dollar of foreign investment to India but will it be enough?

The reform should be done in a way which should address the core issue of the Indian economy not widen the issue. For instance, this so called reform will not address trade deficit neither current account deficit rather will increase them. This reform will not create wealth for the lower segment of the society neither will create employment but will reduce the opportunity for the poor.

By and by I support 100% FDI in every sector but I dont want to call them as reform. India should had done that in early 90s and opened its economy for competition. Rather, doing it in later stage created the opportunity for the vultures to exploit the accumulated wealth that indian society hard earned over the years.

You are aware that a CA deficit is perfectly acceptable if your economy is growing at a steady and high rate- India IS 5.5% this year and 6% next year and then back to 7-8% the following years. Additionally India's middle class is the fastest growing middle class ON EARTH so it is natural that as disposable incomes go up so will imports however this growing middle class is a major strength for the Indian economy and has been praised and is the envy of many economies especially China. This growing middle class ensures ever increasing levels of domestic consumption within the economy that makes India very resilient- look at the 2008 financial crisis, the Chinese because of the nature of their economy had to inject huge amounts of cash into their economy to keep it on track whereas this was not required in India and this was very much admired by the Chinese.


Additionally whilst all anti-Indian articles may keep going on and on about a CA deficit you have to understand that this is just one component of the Balance of Payments. FDI will help offset the CA deficit by a significant amount.

And like I said before this kind of reform has a significant "trickle-down" effect because there is a signifcant multpiler effect at work in India and there are all kinds of spin-off beniftis that WILL help the ecomomy as a whole:

There is significant mulpler effects form this descion-

1) Employment- these stores a huge and require huge numbers of employees at all levels from retail to farmers, drivers,stockers etc

2) Boost to other sectores such as agriculture which will no longer have to waste mammoth stock and can get cold-store facitlitieswhich is a major plus and will also mean agricultural output increases as less is wasted, India already being a MAMMOTH agricultrual player will only get boosted. Motor industery wll also get a boost, these compaines are going to need trucks for delivery and transport, of late the Large truck sales have taken a slip and these guys entering the market will be pretty big espially as these guys are used to Western transporting costs and will be flawed by Indian prices for pretty much the exact same procuct Bhrat Benz,TATA,VOLVO etc could all get a major boost here. Also the constriction sector will get a boost with having to build these massive supermarkets.


3) Competion-competion is always a good thing and the benifits will be delivered to the consmers, added choice and more comptitive pricing and breaking an monopolisitc tendancies in the sector.


Whilst the intial steps will be taken in large cities there will be a definate "trickle-down" effect for the entire nation and the states who are reluctant at first can wait and see what happens in states that give the go ahead and when they see the postivie results in other states you can bet they'll change their tune in a heartbeat and scamble to get their slice of the pie.



All in all, a good move.

You-re making out the fundamentals of the Indian economy are bad and the ecomomy is flawed when,in fact, the opposite is true and the fundamentals are very positive in India and if tapped correctly are a huge fountain of growth and prosperity.


I don't know what you think you know about economics but you are wither incredibly mis-informed or your hatred for India runs so deep you are willing to overlook logic and make yourself look a fool just to criticise India for a non-existent reason.

 

[TopCat]

Please care to explain.....................why only rich farmers and not poors..............Even today the Wealthy farmers sell their products as per their wish.............Say if a wealthy farmer don't get expected price for his product say cereals..........he will store it till he get a profit from his sale .......but a poor farmer will have to sell his product to Dalal to be debt free from loan he has taken for farming.................

You think Wal Mart going to buy from poor farmer who barely maintain quality neither can maintain supply guarantee. LOL

 

[Sashan]

You think Wal Mart going to buy from poor farmer who barely maintain quality neither can maintain supply guarantee. LOL

Do you know the Walmart model in China and the plans for India?

 

[gslv mk3]

^^^^ Usual internet jamtis.....pls ignore it bro.....

 

[Sashan]

^^^^ Usual internet jamtis.....pls ignore it bro.....

I have a posting about the details about walmart model in China and plans for India. I did not go through the pains of searching that post and placing here as I wanted to know his intentions.

 

[OrionHunter]

You think Wal Mart going to buy from poor farmer who barely maintain quality neither can maintain supply guarantee. LOL

An egg laid by a hen of a small farmer is the same size as an egg laid by the hen of a big farmer! Walmart would buy both! Elementary Dr Watson!

 

[gslv mk3]

When ever India announces something these people would start jumping about poor in India
I sincerely ask them to take care of poor in their own countries....
Indians are here to help their poor compatriots

we dont need any advice on that..............

 

[karan.1970]

When ever India announces something these people would start jumping about poor in India
I sincerely ask them to take care of poor in their own countries....
Indians are here to help their poor compatriots

we dont need any advice on that..............

When their backside is on fire, then its obvious that hot air will come out from other orifices

 

[Phoenix89]

7 sectors attracting FDI for India:

International investors have shown interest in Indian market amid all the global concerns. The Ernst & Young's 2012 attractiveness survey indicates that companies continue to be convinced by India’s growth and foresee their presence in the country as a positive long-term opportunity: more than 60 percent of companies already present in India plan to increase their operations in the country.

1.Infrastructure

The number of FDI projects in the Infrastructure sector grew by 90 percent in 2011 in India. The sector contributed 4 percent to the total number of FDI projects and 9 percent to the total jobs created. Development in the country’s infrastructure is poised to accelerate as the Government of India plans to double its infrastructure spending from US$500 billion to US$1 trillion during FY2012–17.

2.Automotive

The automotive sector in India attracted 78 FDI deals during 2011, an increase of 28 percent in comparison to the same period in 2010. Although the sector made up 8 percent of total FDI projects in India, it created most jobs (16 percent). India is now the world’s seventh-largest passenger vehicle manufacturer, and the second-largest medium and heavy commercial vehicles and 2-wheelers market.

3.Retail and consumer products

The number of projects in the consumer products sector grew by 31 percent in 2011. The sector made up 10 percent of total FDI projects in India and created over 28,400 jobs. Investors in consumer products are interested in accessing India’s rapidly growing middle class, which is increasingly able to afford consumer products. In particular, investors have observed growth in the packaged food and beverages sector. The Government of India, however, did not back down from allowing 100 percent foreign investment in single brand retail from the current 51 percent. This will help some of the well-known apparel single brand firms that are keen on entry into India.

4.Technology

The technology sector in India has a major impact on the Indian economy. The industry has grown from US$4 billion in 1998 to more than US$80 billion in 2011, employing directly and indirectly more than 10 million people. Riding on the services outsourcing wave, domestic and international companies have leveraged India’s value proposition to enhance their competitiveness in the global market.

5.Financial Services

In 2011, the number of projects in the Indian financial services sector increased by 21 percent, whereas the value of FDI projects increased by 75 percent. Despite a high growth potential, FDI in the industry remains low compared with other rapidly developing economies, due to capital account convertibility, capital lock-ins and numerous regulations. However, the demand for a wide array of financial services products, ranging from credit to insurance, is growing.

6.Life Sciences

With India aspiring to become a global economic powerhouse, there is active focus on improving the health of the nation. India has a disease burden which is around 37 percent higher when compared to Brazil and 86 percent higher when compared to China. Government also permits 100 percent FDI for health and medical services under the automatic route. Riding on the wave of successful penetration of telecommunication technology to the masses, mHealth is likely to play an important role in taking healthcare to remote under-penetrated areas and present an estimated opportunity of US$500 million over next 5 years.

7.Cleantech

India continues to be one of the preferred destinations for cleantech investments. According to the November 2011 edition of Ernst & Young’s Renewable energy country attractiveness indices, India ranked as the fourth most attractive country (after China, the US and Germany) out of 40 countries. Investors see potential in the sector, given the current Indian power generation deficit of 10.3 percent. The Government of India has taken a number of initiatives to promote the sector. The market’s concern over future energy price rises is expected to boost interest in power-saving technologies. This will likely support the country’s goal of 15 percent of green electricity by 2020.

 

[Phoenix89]

Personally i feel #1 #4 #5 and #6 needs FDI asap....Only if politicians gets the courage to take the steps, We will see change in coming 5 years...I hope we don't get worried by FDI in at least those sectors....
I see many members here who are against FDI,investment in infrastructure and Technology sectors is need of the hour....

 

[Marxist]

FDI: All party bandh on September 20

FDI: All party bandh on September 20 | Fdi Retail | Tdp | Bjp | Left | Bandh | Lpg Hike | Andhrawishesh.com

Bharat bandh on Sept 20, says LK Advani: reports

Bharat bandh on Sept 20, says LK Advani: reports - Hindustan Times

 

[Doctor Death]

Yesterday two Americans visited our company office,they said they are deeply satisfied with the move

 

[I spikes therefore I am]

I see you have lot of things mixed up ..but the ground reality is that more Indians came out of poverty in the last 20 years than in the first 40 years where we experimented with socialism and nearly bankrupted our nation. So whatever that brings prosperity to the nation, reduces poverty is welcome by me.

Sorry to say this actually you don't anything about ground realities have to heard about Bt cotton or Monsato or green revolution and their negative impacts in India? . Can you tell me where you will get the seeds of Bt(GMO) cotton or Bt Maize? . Those things are mentioned indirectly in my earlier post.

I am not messed up things, I just given some eg about our system proceedings. Now FDI in aviation sector so next it would be railway or bus transportation, now 4 PSU's disinvestment from Indian govt. next would be SAIL ,BHEL, ordnance factory etc.. Now FDI allowed 74% of tele-commnication sector next it would reach more than 90%. If you getting money and benefits means we have do to whatever we want?.

Famous saying:The misfortune of the wise is better than the prosperity of the fool



Tell me why they taking such decision now? simple... our growth rate expects to fall to 5.2% , so do you think its right way to accelerate the growth?. The govt. lost its fidelity in every means hence this crap happening. After few years the similar condition arises like now means the above mentioned things will inevitable.

Epicurus: True freedom comes through self-reliance.

We are proceeding in other way around.

 

[David James]

We are living in a information revolution era, never in the history of mankind we were exposed to the so much information and that too easily.

But the knowledge and wisdom is not available commonly ............period.


1. Advocates of FDI in Retail says: The mom n pop store/neighborhood store offers free home delivery.

In reality, Supermarkets: also offers free home delivery.

2. Advocates of FDI in Retail says: The mom n pop store/neighborhood store takes order on phone and on credit.

In reality, Supermarkets: also takes order on phone and on credit.


3. Advocates of FDI in Retail says: The mom n pop store/neighborhood store have decades of personal rapport with the customers.

In reality, Supermarkets: No body gives a damn to the hello-hi when there is some savings in hard cash.

4. Advocates of FDI in Retail says: The farmers will be benefiting from it and they will get the higher price of their products.

In reality, Supermarkets/MNCs: Here following are the 2 examples thousands of kilometers away in India about the MNCs promises to the poor farmers.

a.) Example from Kerala: The world famous chocolate maker and MNC Cadbury had promised to the Kerala farmers that it will purchase their cocoa crop but when the farmers approaches the company for the delivery the Cadbury refused to buy the product saying that the prices in the international market have crashed due to the bumper crop in Africa and other parts of the world.

It is very obvious if a commercial firm is getting something cheaper it will opt for it and will not take huge losses just for the sake of poor farmers. They are for the profits not for the charity.


b.) Example from Punjab: The MNC Pepsi purchases potatoes from Indian farmers for chips/wafer production of its different brands but in the past Pepsi have refused to obey its commitments to the farmers when the prices of the potatoes were crashed badly. Here Pepsi have placed the argument that the potatoes were not of their standard.

It is not a subject of argument that MNCs are here for minting money and not doing any charity they will do whatever they can do just to make $$$$$$$$$$ profits.

 

[Tshering22]

FDI: All party bandh on September 20

FDI: All party bandh on September 20 | Fdi Retail | Tdp | Bjp | Left | Bandh | Lpg Hike | Andhrawishesh.com

Bharat bandh on Sept 20, says LK Advani: reports

Bharat bandh on Sept 20, says LK Advani: reports - Hindustan Times

I don't know why BJP is ruining their image after such a landmark decision has been once taken by this government.

This would immensely benefit the farmers as big supermarket chains have agreed to buy it directly from them. Now unscrupulous middlemen cannot get away with their looting.

Aviation sector badly needs FDI investment as Mallya is in deep shyte and so is Air India. The prices have gone through the roof already with DIAL and MIAL already shooting their airport charges and airlines hiking their fares due to absence of too many competitors.

Personally, I feel that this decision will really benefit India equally in the long run.