Transcript FDI in Retail Sector Good or Bad for India (Walmart, Tesco)

Everyday needs at cheap price.
 Development of Retail & Supply chain
Infrastructure.
 New Jobs May be created (but loss of
jobs in unorganised sector)
 Food waste will be controlled.

Indian retail market worth 4 Trillion US$,
that is ₹ 153 lakh crore,
 Expected Market share of Foreign
Retailers 75% (in 2007 in U.K 93% of market share was
held by multi branded shops)
 Forecasted Profit 15% (please look at the
Walmart Profits)
 15% of ₹ 114.75 lakh crore is ₹ 17.3 lakh
crore

51% of 17.3 (8.83 Lakh Crore) will be
ripped-off from Indians by foreigners to
their nations.
 By 2014 market worth 9 Trillion US $. So
around ₹17.5 Lakh crore will not be
circulated inside India and shared by
tens and thousands of people, if we
open this FDI flood gate

Special teams of Foreign Retail
Corporate Companies in every country
will import cheapest product, so we can
benefit of having that product for
cheap.
 Cost : closure of local manufacturing
units, and the story will continue.
 Manufacturing jobs will be cut.
 Trade imbalance due to high import.

Government will need to spend more on
benefits for jobless people.
 Our decades of middle class savings will
go to foreign in the form of profit
 Again western will rule our economy
indirectly. The whole supply chain and
demand will be decided by Walmart,
Tesco or whatever etc. So in long term, it
will not benefit us, but the foreign
company.

Suppliers, who supply Milk, Vegetables,
Cloths, A to Z are not happy, they get for
bread and butter only.
 So why they supply?

› because they cannot sell their products to
anyone except to these retail corporate
companies as they are the only available
and major controllers of retail market.
› In 2007 in U.K 93% of market share was held
by just 8 companies, 65% by 4 companies
In U.K, Retail companies imports cheese,
butter, Vegetables, wine, Pizza and many
more from Italy, France, Germany and from
many countries.
 Those products was previously produced
locally before these companies established
their presence.
 On 25.11.2011 British policy makers officially
said that economy will take 5.5 years to
recover to pre-recession levels. The country
is struggling to boost its output by 0.5%.

Not in a year or two, but took decades,
companies sourced from many other
countries like China for pet food, milk
powder and much more.
 It imported most of its retail needs from
other countries, Local people lost their jobs,
and country is spending more on benefits.
People already lost their reserves, but
inflation is being somewhat fair as the only
benefit of having Multi branded shops. Now
the country is struggling to reconstruct its
manufacturing sector and create jobs.

Although U.K imports so much from so many
countries, the bosses are Europeans and
Americans.
 Major imports from South America, Africa
and few from China are exported by the
same companies. So the buyer and seller
both are the same.

› So, in India, an American or European will trade
and earn money, even if it sells only Indian made
products. Same like pre 1947, just the tax will
remain.( if we can manufacture, why can’t we
sell?)

Minimum 30% should be sourced from
small and medium scale industries
› No clues about Import restrictions.
› Stores can be established only in cities that
has 10 lakh plus population. (India will over
take China and many more cities will be added
in years to come)
› 50% of investments should be in rural areas.
(it is possible, even if we don’t put such
restrictions, they will do it to save money)
Because we are hungry for FDI now,
 India’s Inflation i.e price is largely driven
by Food and basic needs, not just by
interest rates.
 India will be facing the highest Inflation
than many other countries for few years
to come according to Morgan Stanley.
 So allowing FDI in this sector, it will help us
to control inflation, (but I’m not ready to
loose that Gandhi Ji, got me)

India should be ready to take aggressive
step towards developing Supply chain
management, it is shame that if it cannot
do that Walmart can.
 We people of India should be ready to face
tuff time for few more years to enjoy the full
Golden Egg laying hen.
 FDI is like giving your own land for someone
on lease.(accessing Indian Middle class market is renting

gold egg laying hen and so America welcomed it, they are
not fools)
.....
 We can allow FDI in the luxury areas, like
Luxury cars, Luxury watch etc, because it
targets the rich
 Technology, Power & Energy (we already
gave for nuclear power), we need to
develop it ourselves, but for now
advantages may outperform.
 Allowing them in retail area where those
company can have access to our crores of
middle class hard working innocent Indians,
then their savings will be converted as
profits and will be taken to other country,
will not be circulated or shared and owned
locally by Indians






I will die as a dignified Indian.
I will not let my country’s major GDP to be
controlled by foreigner and foreign
companies.
I’m not ready to eat full meals that
foreigner gives, although I’m ready to eat
porridge if an Indian gives.
Every Indian can eat royal meals every day
in near future if we sustain now, American
will not save Indian, Indian should.
Don’t just say Jai Hind, unless until you start
work for yourself.