Utlimately with the the Retail who will benefit the most:

1. Farmers as all middle man will be lost- They will get more margin
2. Consumers, they will get goods at discounted price


The overall savings to Indian economy could 20-30% of Retail industry. Meaning if the Industry is worth 300b$, the saving with 20% could be 60b$. THis means that this kind of money will be pumped back to indian economy by Retail business house. This itself is huge investment. This will ensure our economy maintains a high growth rate year after year. It is basically a cycle.

Farmers in turn will also become consumers with more disposable income.

-- Remember by Outsourcing IT work to India / manufacturing to China, US Company saves huge money which is again pumped back to US economy and that is the reason why US economy with such a huge base (12T$ GDP) is still growing.

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http://www.rediff.com/money/2007/mar/28forbes.htm

Why Wal-Mart entry can disrupt India

Gary Weiss, Forbes | March 28, 2007

Sorry, but I've never been a big fan of Wal-Mart's business practices. I love the stores--they're the first place I go when I run out of glue and kitty litter--and I even owned the stock some years ago. But Wal-Mart's aggressive attitude toward suppliers and its impact on small business give me an uneasy feeling in the pit of my stomach.

It's a bit how I feel when I see a Rottweiler sniff a kitten. Is it going to lick the kitty, or turn it into lunch?

Wal-Mart's plans to invade India give me just that kind of lump-in-the-gut feeling.

Sure, it makes a great deal of economic sense, and I'm sure it fits squarely into the whole concept of "globalization," "free markets," and other mom-and-apple-pie platitudes.

The company has signed a memorandum of understanding with an Indian company, Bharti Enterprises, to explore business opportunities in the country. That's about as specific as it gets, but I can see them now: big boxes dotting the Indian landscape. Think of it: morning at the Taj Mahal, afternoon buying glue!

What's wrong with that picture? Plenty, in my view.

As a business decision, it is a terrific one from Wal-Mart and Bharti's perspective. The statistics are, as they usually are for India, massively intimidating.

Network Magazine, an Indian business publication, observes in its current issue that retailing is India's largest industry, accounting for over 10% of the country's gross domestic product and around 8% of employment.

"The Indian retail industry is valued at about $300 billion and is expected to grow to $427 billion in 2010 and $637 billion in 2015," says the magazine. Only 2% to 3% of that is "organized." That is, actual stores instead of open-air markets, roadside stands and other beneficiaries of India's relaxed attitude toward urban planning.

That sound you hear is retail executives drooling.

There's no question that Wal-Mart's fabled "efficiencies of scale" and modern distribution methods would be a breath of fresh air (so to speak) in India, with its rampant inefficiency and corruption.

Indeed, Wal-Mart is not the only major retailer sniffing around India. India's own Reliance Group plans to expand its chain of supermarkets in India, though they are far more limited in scope than Wal-Mart's big-box business model.

What troubles me about Wal-Mart's India move concerns the potential for social disruption.

There are 12 million people working in retail in India, ranging from operators of boutiques to the fellows who sell "cold water" on the streets of Delhi. I think the water guy and the kid selling fresh coconut juice in Mumbai don't have much to worry about (avoid the water, but try the coconut juice, by the way). What troubles me are the "organized retail" shops, which are often run by the same family for generations.

What happens to their businesses and what happens to the markets--or bazaars as they are known in Farsi-derived Hindi?

In India, "Main Street" is not a street, but a bazaar. Delhi alone has dozens, ranging from Old Delhi's Chandni Chowk--a real bazaar in the Middle Eastern sense of the word--to roadside hovels to upscale markets like the two in Greater Kailash. In Central Market, a sprawling shopping district in South Delhi, you can get a suit made, order world-class opticals, buy dates from Saudi Arabia or, for that matter, buy pretty much anything else you could want.

The merchants are competitive with each other, usually, and Delhi shoppers will go from shop to shop, bargaining for a better deal.

In other words, the bazaar is an institution, a way of life. And, in the view of a growing number of people in India, it is endangered by Wal-Mart.

The opposition comes from quarters that are, I suppose, predictable: some elements of the ruling Congress Party, trade unions, the Communist Party and, of course, the merchants themselves.

The rhetoric has been remarkably similar to what you usually hear when a big-box store comes to a small town. "We believe Wal-Mart is going to ruin this country and millions of people will lose their jobs," one anti-Wal-Mart organizer told Reuters.

The difference is that when people lose their jobs in India, they sometimes starve.

I think the opponents to Wal-Mart in India have a point.

It's easy to view such opposition as politically motivated or the griping of people opposed to progress. But then I think about a family friend, now in his 40s, who as a boy used to work in his father's parchun store, selling dried beans, rice and spices along the train tracks leading south out of Delhi. His father ran the store before him. Today he is one of the leading real estate developers on the outskirts of Delhi.

I tend to doubt that he would be in that position if he had spent his youth mopping up aisle 9 at the Greater Kailash Wal-Mart.

Admittedly, I am tilting at windmills here. The Indian government, responding to the protests, is launching an inquiry into the social and economic effects of big-box retailers moving into the country. But I am sure Wal-Mart is inevitable. The march of progress cannot be impeded. The small merchants of India will have to compete, or be crushed.

Globalization must, ultimately, triumph. After all, as one supporter of the deal once pointed out to me--what about outsourcing to India depriving Americans of jobs? Don't get all sentimental about a few million Indians losing their jobs, he told me.

He's right, I guess. But somehow the thought of that comeuppance, or all that economic efficiency, can't make that knot in the pit of my stomach go away.

Gary Weiss has covered business for more than 20 years as an investigative reporter and author. His latest book is Wall Street Vs. America: The Rampant Greed and Dishonesty That Imperil Your Investments. He blogs regularly at http://www.garyweiss.blogspot.com." rel="nofollow">LINK

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Speech by Thomas Friedman of The New York Times....

"When we were young kids growing up in America, we were told to eat our
vegetables at dinner and not leave them. Mothers said, 'think of the
starving children in India and finish the dinner.' And now I tell my
children: 'Finish your maths homework. Think of the children in India
who would make you starve, if you don't.'"

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Originally posted by jayaram

This will be bad for Indian people who are working in the Manufacturing sector. We don’t Walmartisation of our Indian Economy. The whole US is Walmartisation economy.
The govt. should put restriction on the product that is sold and it should be 80% of Indian Content, other wise Indians will be buying Chinese goods (which are subsidized by Chinese govt.) which they will dump in India. Our Manufactures will go bankrupt and people will be loosing jobs.

So Say “NO WALMARTISATION “

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I absolutely disagree with Walmart entry in to India. This is one more step by MMS/Sonia to sell India cheap. Walmart has never benefited consumers. May be their prices are cheaper but so is their quality. Walmart is nothing but China Inc. I saw quite a few postings who are parroting same nonsense as newspapers who print s**t when WM gives them money.

WM is a sophisticated and monopolistic middleman. Some morons have written that farmers would earn more with elimination of middleman. The moron have absolutely no knowledge of how Bazar or Mandi are organized in India. There are hundreds of middlemen and competition. They charge very reasonable commission and provide important service to farmers. May be these idiots are hooked to Raj Kapoor movies which villified "Banias" but things have changed quite a lot. If they need enlightenment, then they should study working of Gujarat Agro food's working who opened many cold storages in rural area and provided farmers to store Potatoes and Onions and changed their fortunes.

Farmers do not get good price because they are forced to sell their products as they do not have storage capacity nor capacity to obtain finance and wait for better price. WM would replace these middlemen, employ a few of them and make others jobless. It would not improve condition of farmers.

Once WM drives out small traders, it would charge exorbitant prices. How do you think WM makes fantastic profit? There is enough material on net about the pervasive effect of WM on communities. I can understand MMS/Sonia who have antipathy towards Hindu and Indian to endorse the WM idea but I do not expect that sort of endorsement from CDs except few.

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Originally posted by Nightmare
Once WM drives out small traders, it would charge exorbitant prices. How do you think WM makes fantastic profit?

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Originally posted by puttoo

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Originally posted by Nightmare
Once WM drives out small traders, it would charge exorbitant prices. How do you think WM makes fantastic profit?

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You might be able to sell this in India ]

So you think Indians are stupid?


[......this fear that walmart will charge exorbitant prices because that is how it makes a "fantastic profit" . But everyone in Canada or atleast on Canadian desi has shopped in Walmart atleast once to know how "exorbitant" their prices. ]

This shows your lack of knowledge. Everyone on CD knows that WM gross margin is never less than 100%. Now if that is not exorbitant, then you need to get your head examined. As I had stated, once they drive competition out, they are free to charge whatever they wish. With what would you compare WM? Who is their competitor? Other stores are speciality stores for clothes or electronics or cosmetics or footwear etc. and believe me, if you want quality product, you do not go to WM. You go to HBC or may be Sears but certainly not WM. True that everyone goes to WM once in a while for cheap Chinese products but that is because there is no competing stores. I hardly go to China Inc. since I have become "middle class" income person from "poor" but I still hate WM so much that a couple of times I go to WM, buy things and then return it, just for the fun of it.For example, Last season, I bought a snow blower of Chinese make, used it couple of times and then returned it. WM clerk casually asked asked me reason for returning it and I said "Because it is made in China. I bought Deree product (Which I really had not. Probably they also get it manufactured in China) but anything that hurts WM or its Chinese supplier is fine with me provided it is within legal boundries. I wish everyone does that. WM is a major contribuyor for USA woes but your God moron Obama is too ****** to appreciate that. He still supports and bends over backward to Chinese criminals. MMS is Indian Obama who wants to destroy India and hence WM .

[It is not only Walmart ...... it is opening of Retail sector to FDI that is being done. And once it opens up you will see the Modi G running after Walmart to open operations in Gujarat. This is like the China thing .... you can blame MMS/Sonia for that .... but everyone in India including Modi G is trying to "attract" the Chinese to come and invest.]
As I stated before, you are a literate person who cannot think. Trade with China is not "Investment". Investment is what China does.It allows foreign companies to put up physical facilities, construct factories and erect plants and provide employment to Hans. Importing from China is trade. Where is the question of investment? Think, if you can, before you write.

As regards Modi, unfortunately he cannot decide issue of entry of WM. That is corrupt centre of MMS/Sonia?Chiddu which takes decision. Hence if WM decides to come to Gujarat, he would welcome them. Have you heard "When rape is inevitable, enjoy it". It sis that sort of situation. When he cannot prevent WM, it is better to welcome it.

However, I hope other CD (barring you who cannot think and your bosom friend Chedda) would agree with me about WM's role in destruction of USA

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