FDI IN RETAIL NOTIFICATION-MORTGAGING THE RETAIL TRADE
CAIT THROWS CHALLANGE FOR AN OPEN
DEBATE
The Government's notification of
allowing FDI in Retail issued on 20th September speaks the fact that the
Government is playing a game with the people of India as it has provided
various concessions to foreign investor to pave and easy way for them to establish
their business in Indian Retail Trade. The Confederation of All India Traders
(CAIT) while strongly criticising the
Government for such a step has termed the notification as an attempt to
mortgage the Indian Retail Trade at the hands of MNCs.The CAIT has thrown a
challange for an open debate on the issue.
CAIT National President Mr. B. C.
Bhartia and Secretary General Mr. Praveen Khandelwal today said that as per
para 6.2.16.5 (vi) the retail outlets of
MNCs will be in cities with population of more than 10 lakhs. But going a step
further the notification authorises the MNCs to set up retail stores in the
cities of their choice in such states which do not have population of 10 lakhs
as per 2011 Census which means that MNCs will have a free hand to set up their
retail stores anywhere in India. Para 6.2.16.5 (iv) mention that at least 30%
of value of procurement has to be done from small industries with investment
not exceeding US$ 1 million. However, great relaxation has been given to MNCs
to meet this requirement in total purchase of first five years and not year
wise which means that MNCs will be at liberty to outsource even 100%
procurement from anywhere over the globe even from the starting year of their
operations and later on to meet the requirement of procurement of 30% from
small industries In other wards it is not mandatory for MNCs to procure at
least 30% from Indian small industries right from 1styear. Vide Para 6.2.16.5
(v) most surprisingly, the MNCs have been allowed to self-certify the conditions
stipulated in the policy. There will not be any Government mechanism to
regulate whether these companies are complying with the condition mentioned in
notification. It is an open fact that global retail giants are known for
flouting the laws. Thus whatever conditions have been stipulated in the policy
will go redundant because of self-certification conditions. Interestingly such
a facility of self-certification has not been given to any domestic company in
any sector.
The trade leaders further said
that vide para 6.2.16.5 (iv) the Govt. has permitted to open front end retail
stores immediately but has given a time period of 3 years to MNCs to develop
backend infrastructure against the repeated statements of the Govt that
development of backend infrastructure is first priority. Further, It is also
not clear that whether these FDI’s will have to be owners of backend
infrastructure or they will do it indirectly and claim that they have invested
in it. Surprisingly establishment of cold storage and running of cold transport
chain do not figure in list of backend infrastructure. Constantly the
Government is referring to wastage of fruits and vegetables as a major issue
and therefore seeking immediate requirement of Cold Storage but it appears that
the same has been intentionally not referred to in the policy while defining
backend infrastructure. It creates a major doubt on the intention of the
Government.
Vide para 6.2.16.5(i) the Govt. has allowed FDI in Multi Brand
Retail Trade in all products but under disguise of fresh agriculture produce,
it has permitted sale of grains and pulses in loose (unbranded) which is a
major diversion from the earlier policy. This will directly attack the business
of small Kirana Stores. This step has enough indication that the Government has
a clear intention of allowing global players to do business in non- branded
items also at a later stage.
Both Mr. Bhartia and Mr.
Khandelwal said that under backend infrastructure the policy has a mention of
agriculture market produce infrastructure which is very dicey and needs to be
defined. They further informed that considering the seriousness of the matter
the CAIT has called an emergent meeting of its National Governing Council
comprising of leaders of different States on 26th and 27th September at New
Delhi to draw future countrywide agitational strategy.
For more information please
contact CAIT, Secretary General, Mr. Praveen Khandelwal@9891015165, 9310199771.
Hi,
ReplyDeleteThis is gonna shock all of you , out of your pants.
It was decided in the Bilderberg club long ago, to gate crash into Indian economy, by a conspiracy.
If you want to know what this elite club is –
Punch into Google search
THE SHREWD CLUB WITHIN THE NAÏVE BILDERBERG CLUB- VADAKAYIL.
also
Punch into Google search
WALMART IS NOT GOOD FOR INDIA- VADAKAYIL
The banking cartel has been given a toe hold in India, by giving away FDI in multi-brand retail and FDI in insurance.
Insurance affects transport costs and trade costs -- it requires perception to understand all this.
The approach to micro economics and macro economics , cannot be top down or bottoms up, every which way, based on testosterone levels ..
Economics must be re-written by Indian intelligentsia , where the TERRAIN MUST PREVAIL OVER THE MAP .
All perceptive students of economics on this planet -- please start demanding answers from your professors — I am sure you know that you are being taught empirical pseudo-science. If it is blasphemy so be it!
This must be a win-win model ensuring the down trodden are not left behind, with freedom from “risk of slavery” as number one condition.
We are confusing GDP with economic progress. We are destroying entrepreneurial activity and eating our own children.
Fitch , S&P and Moody’s are bouncers for the banking cartel. The economics of Rothschild’s Indian alchemist Manmohan and his gunslinger Montek is VULGAR pseudo science.
DORKS and desh drohis shall lay off !
Capt ajit vadakayil
..