while campaigning for Loksabha election prime minister Narendra Modi had promised to people that he will not allow foreign direct investment in multi-brand retail sales. but now he is going back to his promise and not only ready to allow 100% FDI in retail sales but also in many other field including defense. this policy is not good to the country or people. FDI in retail sales will bring doom to our small and medium,even whole sale merchants.even our farmers also will get affected.
foreign retail operates like Wal-Mart Stores Inc and Tesco have huge resources in their disposal. it seems wal-mart had spend Rs.125 crores to just enter Indian market! if that was their efforts, what will happen after entering retail market in India? very soon they will swallow small, medium and even our own big retailers and become monopoly in the business.our Indian big r
the foreign operators will entice our government with many advantages as huge employment opportunities,foreign exchange earnings and extract huge tax relief,land power,water, and infrastructure benefits. to get more and more benefits the foreign companies will go to any extent to please our authorities!
initially they will accept all of our conditions! after sometime they will not abide.our people graciously overlook or if asked they will show some fine prints in their contract conditions which our people overlooked! they will evade huge amount of tax!
their business administrations and operations will me mostly mechanized and not labor oriented.
example: -
A cell phone manufacturing company at sriperumpudur, Chennai company had evade huge amount of central and state government.this company provided employments to around 8 thousand people directly and 14 thousand people indirectly. now it has retrenched around 14 thousand employees! initially the company had agreed to export 80% of its products. but it had sold 80% in locally and export 20%only! there are many examples like this.
we have many multibrand retailers our own like Reliance, Tatas and many others.
people can argue that even china is also having foreign direct investments.it is true. many multinational companies have invested in china..but Chinese government is closely watching the activities of those companies and make them to abide its laws and conditions! in our country it would be DIFFERENT !
complete market oriented economy is not suitable to our country. globalization and market oriented process is not doing any good to our country, it makes RICH - RICHEST and POOR - POOREST! an innovative new economic police is the need of the our.
