View
412
Download
0
Category
Preview:
DESCRIPTION
This preseations descripts the details about on FDI and its impact on indian retail trade
Citation preview
By
S. Rama Krishna Chary
JRF-Commerce
THINGS TO REMEMBER
Before we go ahead, we should keep certain basic facts in our mind.
We are a country with huge population out of which majority are unprivileged and Below Poverty line.
We are people with tradition, culture and ethics.
In our country it is very difficult to get alternate employment.
Our survival is because of our collective strength.
The Govt. policies have been anti growth oriented for traders.
The traders voice is not heard by decision makers.
In fact traders have no representation in Govt.
The decision makers do not ever hear him on policy matters affecting his trade.
“WE, THE PEOPLE OF INDIA, having solemnly resolved to constituteIndia into a SOVEREIGN SOCIALIST SECULAR DEMOCRATIC REPUBLICand to secure to all its citizens :
JUSTICE, social, economic and political;
LIBERTY of thought, expression, belief, faith and worship;
EQUILITY of status and of opportunity; and to promote among themall
FRATERNITY assuring the dignity of the individual and the unity andintegrity of the Nation;
PREAMBLE
INDIA UNDER MNC’s REGIME :
WILL THE PREAMBLE BE RECONSTITUTED.
“WE THE DICTATORS TO INDIA having solemnly resolved to ReconstituteIndia into a SLAVERY CASTE BASED UNSECULAR DIRECTEDDEMOCRATIC REPUBLIC and to ENSURE to all its citizens that :
JUSTICE, social, economical and political is discriminatory
LIBERTY of though, expression, belief, faith and worship is permittedas long as it is in line with MNC & World Bank thought to make world asingle religion, belief in single god and faith in them as singleeconomic power.
EQUALITY of status and opportunity is not applicable to local citizens.
AND TO PROMOTE AMONG THEM ALL INDIVIDUALITY, HATRED FOROTHER CASTE AND SURRENDER OF THE NATION TO THE LONEECONOMIC POWER ON EARTH.
LICENCES & PERMITS
INDUSTRIAL DISPUTE ACT
SHOP & ESTABLISHMENT ACT
COSUMER PROTECTION ACT
WEIGHT & MEASUREMENT ACT
PACKAGING ACT
PREVENTION OF FOOD ADULTRATION ACT
PREVENTION OF BLOCK MARKETING ACT
ANTI HOARDING & PROFEELING ACT
MONEY LENDING ACT
PRODEND FUND ACT
MINIMUM WAGES ACT
ESI ACT
GRATUITY ACT
BONUS ACT
INEFFICIENT
LABOURS
PRESENT CONDITION OF TRADERS
INSPECTOR RAJ
POLITICIAL INTERFERANCE
ANTI SOCAL ELEMENTS
WATER TAX
POWER PROBLEM
HIGH BANK
CHARGES
SALES TAX
OCTROI
SERVICE TAX
WELTH TAX
PROFESSIONAL TAX
INCOME TAX
ENTRY TAX
VAT
STAMP DUTY
POOR MARKET
CONDITION
PURCHASE TAX
ESSENTIAL COMMODITIES ACT
CENTRAL
EXCISE
FDI in Retail Trade
Fringe Benefit Tax
New Naka Complex
Cash Transaction Tax
&
Quarterly ‘C’ Form
Retail Traders
Telecom
Aviation
Banking
Insurance
Steel
Information
Technology
Infrastructure
Pharma
Mining
Professional
Education
Presented By Mr B C Bhartia,Nagpur.
RETAIL TRADE :
BACKBONE OF ECONOMY
Retail trade is world‟s oldest business.
Retail trade consists of sale of goods & services to consumers
for their personal, family or household use.
Based on turnover and volume, retail trade is worlds biggest
economic activity.
In the year 2000, world turnover in retail trade is estimated
around Rs. 3,10,20,000 crores.
In India by investing nominal Capital a person can start retail
business.
In India Retail shops are generally owned and run by family. The whole family gets self employed.
HISTORIC CONTRIBUTION BY TRADERS :
During Pre-independence days the traders have helped
the leaders in all forms like man power and money.
In all social activities & establishment of
schools, colleges, hospitals mandir, masjid etc. traders havecontributed.
Round the year 24 hours a day, traders have made all the
goods required by customer available to them
During the days of acute shortages, the traders have
some how managed to arrange goods for its customers.
Relationship of Indian traders and customers is much
more than mere business
Indian traders have always seen customer satisfaction
above personal profit.
SUPPORT AND HELP
TO GOVERNMENT
Traders are self employed and give employment to entirefamily and others.
Traders give employment to that neglected section of societywho do not get employment any where.
Traders take care of entire family of his employees.
All direct and indirect taxes levied by Central, State and localgovt. are deposited by trader in Govt. treasury without anycharges or commission from Govt.
During famine, floods, earthquakes tsunami and other naturalcalamities, the traders have always come out openly toextend full help to Govt.
TRADERS BEING IGNORED
BY GOVEREMENT
In Order to gain political mileage, traders have been termedby objectionable words.
After independence one after another anti trade, anti traderlaws have been made.
Traders have been made slaves under Inspector Raj.
Time & again new legislatures are being imported. SmallTraders have been put under heavy burden of bookkeeping, taxation and compliances under various laws.
In the name of development and road widening the shopsare being demolished only to give passage to hawkers andfootpath shopkeepers to establish their business.
Local Govt. failed to build new markets. old traditional marketsin different localities are being removed to make way for Bigstores to get customers.
CONTRIBUTION OF TRADERS
IN ECONOMY
In comparison to world, India has largest number of retailtraders.
In our country there are about 1,25,00,000 retail out lets.
Retail trade contributes about 10% - 11% of our country‟sGDP.
Total turnover of retail sector is about Rs. 8,75,000/- crores.
After agriculture, Retail trade provides employment tomaximum number of persons.
1.25 crore shops are providing employment to about 4 crorepeople.
In a study conducted by Reserve Bank of India, India RetailTraders charge less margin.
FOREIGNERS ARE MORE
DEARER THAN INDIANS
Indian traders, Businessman and Industrialists have established theirleadership across the world.
India is emerging as a big economic power.
Our country is progressing in all economic fields.
We have lagged behind in infrastructure, irrigation power etc. i.e.such sectors which were under control / monopoly of Govt. Wecould not grow to full potential in such sectors.
These infrastructure sectors require huge investment with largergestation period. Hence special emphasis has to be given to thesesection.
It is unfortunate that instead of focusing development of such coreareas the govt. want to hand over our established retail trade toforeigners.
It is surprising that suddenly govt. feels that our traders areincompetent to serve the people or handle retail shops OR in disguiseof Foreign Direct Investment our retail trade is being sold toforeigners.
WHAT WAS THE CRITERIA
FOR FDI
Some time in 1991-92, the then Finance Minister and
present Prime Minister Dr. Manmohan Singhji referred to
certain criteria for allowing Foreign Direct Investment.These were :
1. Establishment of basic industries requiring huge capital
and advanced sophisticated technology.
2. Infrastructure projects like electricity generation road
building etc.
3. Projects which would generate employment
WILL THIS HAPPEN WITH FDI
IN RETAIL TRADE
Throughout the world it is known fact that huge investment is not required to open a retail shop.
Investment is required to build infrastructure for shop, sophisticated technology is not required in retail trade.
Small Retail shops provide more employment then large chain of Retail stores.
There is no gestation period. Hence business starts from day one.
Instead of developing under developed areas these stores capture prime commercial property in cities.
WHAT DO
FOREIGN / MULTINATIONAL
COMPANIES DO In 60s Big foreign houses entered in retail trade in other parts of
world.
This is against our culture of “One family One shop”.
These big companies, in order to crush competitors sell goodscheap. Later on effective prices of goods are increased.
These companies buy material from International market.Hence local producers are put to loss
These companies buy in bulk quantities directly frommanufacturers. The intermediaries loose business.
After conquering the markets of Europe and America, thesecompanies have now entered Asian markets.
After establishing their footings in Thailand, Indonesia, China,Japan, Philippines, etc in Asia, these companies are nowtargeting India.
EMPLOYMENT GENERATION
UNDER EXISTING SYSTEM
FARM LABOURS
HAMALS
DALALS
BROKERS
TRANSPORTERS
TEA SHOP OWNERS
HOTELS
DHABAS
SHOP KEEPERS
ALL WORKS IN FARM BY MACHINE UNDER CORPORATE FARMING
AUTOMATIC TRANSFER AND PACKING BY MACHINES.
SALE TO CUSTOMERS THROUGH CHAIN OF DEPARTMENTAL STORES.
LARGE NUMBER OF SELF EMPLOYED TO BECOME UNEMPLOYED.
AFTER M.N.C. TAKE OVER
WHAT WILL HAPPEN TO RETAIL TRADE These companies open chain of shops. With a shop in each area the
retail small shopkeepers will be put to heavy loss
Slowly the local shops will start closing down.
These shops will capture the trade.
In countries where they have established their market share is
Name of Country % of Market Share
America 80%
England 80%
Western Europe 70%
Brazil 40%
Thailand 40%
Korea 35%
China 20%
Malaysia 20%
India 3%
Remember example of „BATA‟ in shoe business.
Imagine Roadside DHABA‟s after RELIANCE FOOD CHAIN Starts working.
Cold drink business in India.
WHAT WILL HAPPEN TO
LOCAL RETAIL TRADE
No of Retail outlets Between 1981-99 in UnitedKingdom came down from 56862 to 25800.
Between 1970-80 in Europe about 4 lakhs Retailshops were closed.
Competition shall be limited to Big Retail Houses
In the year 2000 Five Big Fast food companiescaptured following percent market share :
Country % ShareNorway 99
Swezerland 88
Sweden 94UK 64
Portugal 57
WHAT HAPPENED IN THAILAND
In price war traditional shop keepers are facing problem of survival. Many small shop keepers have closed down their shops.
Big companies have seen growth of 40%
There was adverse impact on 60000 small shopkeepers.
A small shopkeeper fired rocket in Big shop & committed suicide," frustration”.
The Prime Minister of Thailand agreed that there was adverse impact on retail trade.
The Govt. which had opened its door for FDI in retail trade with big bang had to provide financial assistance to retail traders by establishing a special fund.
WHAT HAPPENED IN CHINA
There is a race to capture more & more space forretail trade.
There is allegation of flouting the norms on thesestores.
There is anger against these companies amongstgeneral public.
Media is also reporting how traditional shops havebeen thrown out.
The suppliers and manufactures are also facingproblem. These are closing down.
WHAT HAPPENED IN OTHER
ASIAN COUNTRIES
Other countries are also unhappy. Many countries havestarted taking precautions.
Indonesia and Malaysia have established zones within whichthese foreigners can do trade.
In Japan Big companies have to discuss with small traders.There is Zoning system also. Hence these companies have toestablish their shops outside city limits.
There is wide discontent amongst shopkeepers & people inthe countries to which these store belong.
The city counselor of California & Chicago have refused toallow opening of new shops to WALMART.
These shops are required to take permission in countries likeFrance, Germany and America.
NOW ITS TURN OF INDIA
The tough stand taken till recently by Central Govt., ForeignRetail Traders could not enter India.
It is unfortunate that Central Cabinet has given approval toFDI in Retail Trade.
Shift of Major retail trade to these big companies will rendersmall traders & their employees unemployed.
Many companies with the help of contract farming will sellgoods produced in farms directly from their chain of stores.
After establishing control over purchases & sale thesecompanies will start dictating.
These companies will keep only graduates and above in theiremployment. There will be no scope for employment to undergraduate and others.
In the event of non receipt of payment of supplies, it becomesimpossible to reach owners.
CONTRACT FARMING
COLLECTION OF
AGRICALTURE PRODUCTSTO OWN FACTORY
TO OWN DEPT. STORE
TO CUSTOMER
REQUEST STOP FDI IN
RETAIL TRADE
If Domestic Retail Trade is allowed by Big MNC‟s etc., therewill be Large Scale Unemployment.
A new class of unemployed called “Unemployed Traders” willjoin the existing force of unemployed persons.
These companies will sell internationally procured products.Domestic Industry will suffer.
Everybody knows how Big Fish eats away small fishes.
Keeping the experience of other countries in mind, Govt.should not take any such decision for which the wholecountry and coming generation will have to suffer.
SELF EMPLOYMENT IN INDIA
India has huge force of unemployed persons.
Govt. has failed to generate need based employment..
Majority of people in India are self employed.
The Major area of self employment is Agriculture and Retail Trade .
The farmers problems were not addressed timely. They are committing suicide.
WHAT is the future of Indian Traders in India?
WILL next generation pardon us?
WHAT SHOULD GOVT. DO
Govt. should identify the weakness of present retail trade.
Govt. should specify the areas where customers are not being served properly.
Govt. should specify what it expects from retail trade that is not being met presently.
Govt. should publicise the sector / persons who have demanded FDI in Retail Trade.
Govt. should come out with white paper on FDI in Retail Trade specifying the picture after 25 years and 50 years.
INDIA : MY COUNTRY
DON‟T SEE INDIA AS POPULATION OF ONE HUNDRED CRORE
MOUTHS TO FEED.
SEE IT AS A MARKET OF ONE HUNDRED CRORE CONSUMERS WITH
TWO HUNDRED CRORE EYES TO WATCH YOUR PRODUCTS AND
TWO HUINDRED CRORES HANDS TO BUY YOUR PRODUCTS.
WORLDS LARGEST EMERGING RETAIL MARKET : WHO WILLCONQUOR IT : WE OR THEY?
DO NOT MAKE MY GOVEREMENT AS,
GOVEREMENT BY MNC,
GOVEREMENT OF MNC AND
GOVEREMENT FOR MNC‟S
Recommended