Transcript Presentation skills

Dr. Ajit Singh
Associate Professor
Dept. of Commerce
Govt. Postgraduate College,
Ambala Cantt (INDIA)
Introduction
Retailing in India is one of the pillars of its
economy (14-15 % of GDP).
 Indian retail market is one of the top 5 retail
markets in the world by economic value.
 Opening up of FDI in retail sector led to
debate: roll-out red carpet for welcome or
red signal to stop.
 Requires thorough study: pros and cons

Criteria for opening up of FDI in
retailing
 Stores opening in cities more than 1 million
population (45 cities as per 2011 census)
 Minimum capital requirement for FDI in
retails is $100 million (50 % go for back-end
infra. dev.)
 30 % goods be purchased from local
suppliers
Pros
 Help in raising income of farmers
 Help about 5 lakh villages for having infrastructure
 Enable ‘Contract Farming’
 Provide assured price
 Eliminate middlemen i.e. control the prices
 Healthy competition i.e. better quality products
 Provide employment to about 10 million people
 Loss of perishable items which is between 35-40 %
may be checked through cold-storage facilities
FDI in retail: farmers’ perspective
 FDI in the retail sector will affect agriculture a lot as 70
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percent of the retail business is in food items.
Agriculture as mainstay of the Indian economy
engaging about 60 percent of the population.
Agriculture area has not been subject to
comprehensive reforms in India.
Adequate and timely credit to the farmers is
indispensable for agricultural development.
Farmers have to depend on outside sources of finance
for meeting their essential needs.
Contd…
 most of them are heavily involved in debts and
cannot afford to spend money for making
improvements in land
 forced to sell their produce to the latter at reduced
prices for repayment
 whether it will benefit about 92 million small and
marginal farmers
FINDINGS
Problems being Faced by Borrowers in
Getting Loans from Commercial Banks
 ‘Difficulty in collecting record’ has been found to
be the most common problem being faced by the
respondents followed by reason of ‘More paper
work’. ‘Lack of desired security’ and ‘Complicated
process’ are found to be another problems.
Reasons for Refusing Loans by
Banks
 ‘Inability to provide security’
has been found
to be the most important reason for the
refusal of loan to the farmers.
Timeliness of Loans
 It shows that 54.7 percent marginal farmers
availed loan amount after a fortnight while
in case of large farmers the percentage is just
35.3 percent. It may be due to the reason
that large farmers have more and easy access
to the banks.
Credit Requirements and Gaps
 Farmers need credit for allied activities also
in addition to agricultural purposes.
‘Construction of irrigational channels’
ranked first followed by ‘land development
purposes’.
Sources Used to Meet the
Additional Requirements
 Borrowing from private moneylenders has
been found to be most important source
used to meet the additional credit
requirements.
Delay in Refund of Loans
 ‘Inadequate
income’ has been found to
be the dominating reason for delay.
‘Increase in cost of production’ is the
second followed by ‘Natural calamity’.
Facilities expected by the farmers
 ‘Simplified procedure’ has been ranked the
first expectation. ‘Provision of quick service’
ranked as the second.
Cons
 Easy success to big MNs in controlling the
market
 No way uplifting the economic conditions of
the farmers
 Leave the farmers on the mercy of MNs for
fixing the price
 Benefit only a few section of the society
 Job loss to small retailer kirana shops
Suggestions
 Parallel public sector mechanism should
also function to fix the prices to check
monopoly of any co.
 Passing on the benefits to common man
also
 Should bring FDI in other more imp. area
also i.e. electricity production, infra. dev.
Conclusion
Supreme court rejects PIL against retail
(news on ‘The Tribune’ dated May 2, 2013)
 Dismissed PIL against govt’s policy allowing 51 %
FDI in multi-brand retail sector
 Statistics showed that farmers will get 60 % higher
returns
 Presently farmers getting 12-15% of price paid by
consumer
 Good experience of dev. Countries allowing 100 %
Thank you!