Government also increased the FDI limit in single-brand retail to 100% from 51% Government says it will benefit India.
Traders fear the move.
Opposition parties oppose the move as they know they will benefit if they support the traders.
No one is touching the real issues and accepting the truth that today or tomorrow FDI, big global corporations will enter into India directly or indirectly. Today world is becoming a global village.
Foreign Investment in India is governed by the FDI policy announced by the Government of India and the provision of the Foreign Exchange Management Act (FEMA) 1999.
The foreign investors are free to invest in India, except few sectors/activities, where prior approval from the RBI or Foreign Investment Promotion Board (‘FIPB’) is required.
In franchising and commission agents’ services, FDI (unless otherwise prohibited) is allowed with the approval of the Reserve Bank of India under the Foreign Exchange Management Act. Examples of Such Business - Pizza Hut or Nike or Spencer
100% FDI is allowed in wholesale trading.
Wholesalers do the business with the Retailers.
Wholesalers never do business with Consumers.
Few days back central government of India, Congress Government announced the cabinet decision to allow 51 percent FDI in retail that is multi brand. Is it good for the India to reject the FDI policy and direct investment in retail sector by the foreign brands? Does India and Indian citizens are ready for big brands when 70% Indians do not earn daily more than Rs. 20 a day. If you will see the history of foreign direct investment in India you will realize that India does not need any foreign funds. In past history when companies invested Rs. 10 Lakh in one year they made profits of 50 Lakhs or 1 Crore. India is a very big market
now Question is why Indian Government is opening the Retail sector for foreign brands?
Is it an idea to make people forget the Jan Lokpal Bill and in discussions of FDI never to pass the Jan Lokpal Bill and then put the blame on the opposition parties that they did not allow us to work in Parliament.
Who will benefit because of FDI policy of direct investment, Farmer or Consumer or builders and Indian Malls who are not in a competition to Indian Retailers?
Big owners of Indian Malls in future will sell their Malls to Foreign Brands and those rich owners will get the partnership as well as cash. they will make lot of Money because of FDI policy.
After 50 Years what will happen in India because of Foreign Direct Policy in Retail?
Regarding this no body can predict one thing we should understand that Big Rich Multinational Companies and Indian Rich People will be seen controlling the Retail market of India and which will decrease the small business shops.
Big Malls and Big retail chains are good for any honest Country but in corrupt nations the benefits do not reach to the poor people.
The benefits of such faulty FDI policy are enjoyed by Politicians,big business houses, rich people and their friends who introduce the laws like Jokepal for their citizens.
India does not have good and excellent laws like USA.
One example –
In USA if any American citizen hides his money in other country the FBI and IRS of USA see that that rich American Citizen goes to Jail. On the other hand Indian Government and laws do not even allow the Indian citizens [the slaves of India] to know the names of corrupt India who has kept the money in other countries. The Government knows the names but we Indians do not have right to know the names of Corrupt Rich Indians. Those corrupt Indians do not go to jail but they pay...