FDI(Foreign direct investment)

Prepared By:
1) 2) 3) 4) 5) Twinkle Kande Sunil Malav Priyam Patel Apoorv Makwana Nirav Parmar

The recent decision of the government to allow foreign direct investment (FDI) in the multibrand retail sector will also help the real estate sector in the country. This will also increase the demand for commercial space in the market. At the same time, as the demand for office space will continue to be strong, fresh jobs creation in the country will also see a strong growth. Normally, when a company takes 1,000 sq feet of office space on rent, it employs around seven people to fully utilize that space. That means, at least seven new people will enter the job market and, on average , five out them will buy residential apartments. Therefore, a consultant said that according to the thumb rule, the requirement of residential space increases five times that of the commercial space used. Therefore, if the demand for the commercial space remains strong, it will also continue to give a fillip to the residential real estate.

Traders were agaiThere were around 2,000 shops in the Market and all the nst FDI in retail. Traders who have invested a few lakh rupees will have to fight it out with giants who invest crores in the business.

The traders wanted to the Government to rescind the notification and altogether give up the move to bring in FDI in retail.
If the Government failed to listen to the voices of the people and traders, the latter would be left with little choice but to intensify their protests. Consumer activists feel that the clauses formulated by the Centre for allowing FDI in multi-brand retail like the minimum investment stipulation of $100 million with at least half the amount to be invested in backend infrastructure like cold storages and packing and 30 per cent procurement from Indian SMEs, were good as it allows only genuine players to foray into the arena.

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FDI Watch is building awareness and facilitating grassroots action to prevent the take-over of India's retail sector by corporations. We are building Joint Action Committees (JAC) led by those who will be most affected, mainly; trade associations, unions, hawkers organizations, farmers groups and small scale industries.
A National

Streering Committee has formed in Delhi, of which India FDI Watch is a facilitator and member. The National Steering Committee has come under the banner Vyapaar Rozgaar Bachao Andolan. Similarly in Mumbai, India FDI Watch is a chair and member of the Vyapaar Rozgaar Suraksha Kriti Samiti. In Bangalore, India FDI Watch is a key member and coordinator of the Karnataka Joint Acton Committee Against Corporate Retail.
Showing

utter disregard to democratic institutions and expressions, Indian Govt. notified its decision to allow FDI in multi brand retail, late evening on a day retail trade unions and majority of political parties observed nationwide strike to protest against such reform policies.
All

major markets would keep their shutters down throughout India. Markets in Kerala and Himachal Pradesh were closed on 18th Sept to oppose FDI in retail. Markets of both states will again remain closed on 20th September. As per reports of various trade and hawkers associations, there would be total bandh in other states as well including Punjab, Rajasthan, Uttar Pradesh, Uttarakhand, Madhya Pradesh, Orissa, Bihar, West Bengal, Assam, Gujrat, Maharashtra, Karnataka, Andhra Pradesh, Goa and Tamilnadu.

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opposition is to the way the reform has been forced upon the country by the UPA. If the Centre had not acted as a dictator, we may have welcomed FDI in retail, said Badal junior, who has supported the change in the past and had, in fact, written to Commerce Minister Anand Sharma in 2011 welcoming FDI in retail.
Wal-Mart

already has a presence in India, albeit as a joint venture with Bharti (which manages the retail end of the business). Majority ownership is the thorn in the flesh for those opposed to foreign retail
The

small sector is unlikely to remain unaffected if big retail chains enter the Indian market. But from the perspective of the Indian economy the gains to, or protection for, any particular group should be viewed in the context of losses or costs to the country as a whole.
Another

concern is the degree of buyer concentration in the hands of global retailers, especially with respect to the food supply chain. Given competitive forces, it is far more likely that suppliers of food products will experience substantial gains.