Quote:
Originally posted by puttoo
Quote:
Originally posted by Rajagopal
In reality, these stores are selling close to 95% of stuff made in China which drives the Chinese jobs and economy.
The reason they are selling stuff from China is because there is a big gap between labour rates in China and most of western world. That will not be the case in India.
You can see this work in automobile sector ... how come we are not importing cars from China !!!!! All manufacturing is being done in India because the costs are at par with China. Growth in automobile sector has given birth to ancillary industries .... that is why you see a company like Bharat Forge which has become a world leader in their field. If auto sector was not liberlized, this would have not been possible.
Thanks for the update.
You could be right to a large extent. But, one never knows until it really plays out completely.
One advantage to china is, transportation cost of the goods is greatly reduced as it is next door. Anyway MMS has already taken decision and retail FDI is reality.
whatever one may say about MMS, he is a great economist and his past economic decisions are on the right side of history.
Quote:
Originally posted by Rajagopal
Quote:
Originally posted by puttoo
Quote:
Originally posted by Rajagopal
In reality, these stores are selling close to 95% of stuff made in China which drives the Chinese jobs and economy.
The reason they are selling stuff from China is because there is a big gap between labour rates in China and most of western world. That will not be the case in India.
You can see this work in automobile sector ... how come we are not importing cars from China !!!!! All manufacturing is being done in India because the costs are at par with China. Growth in automobile sector has given birth to ancillary industries .... that is why you see a company like Bharat Forge which has become a world leader in their field. If auto sector was not liberlized, this would have not been possible.
Thanks for the update.
You could be right to a large extent. But, one never knows until it really plays out completely.
One advantage to china is, transportation cost of the goods is greatly reduced as it is next door. Anyway MMS has already taken decision and retail FDI is reality.
whatever one may say about MMS, he is a great economist and his past economic decisions are on the right side of history.
Just go and check your facts. Govt. borrowing, Trade gap, exchange rate, INFLATION and price rise, Export of non-renewable natural resources like Iron ore..... list is endless. You should be ashamed to claim MMS as a great economist. Do a great economist would sell 2G spectrum or coal blocks for song? Even a so called village idiot would also not do so. MMS is the biggest hoax perpetrated on India.
Quote:
Originally posted by puttoo
Quote:
Originally posted by Rajagopal
In reality, these stores are selling close to 95% of stuff made in China which drives the Chinese jobs and economy.
The reason they are selling stuff from China is because there is a big gap between labour rates in China and most of western world. That will not be the case in India.
The problem with India has been that in manufacturing we have gone the route of small scale industries. It might be good in a way but it does not make it competitive. So with the advent of large buyers like Walmart, you will see ancillary large industries setup to meet this demand and in turn will help reduce the costs.
You can see this work in automobile sector ... how come we are not importing cars from China !!!!! All manufacturing is being done in India because the costs are at par with China. Growth in automobile sector has given birth to ancillary industries .... that is why you see a company like Bharat Forge which has become a world leader in their field. If auto sector was not liberlized, this would have not been possible.
Very nice response to your rant. Read on.
Vandana Shiva on FDI in retail business - 'Retail FDI is not about investment, but market grab'
http://napm-india.org/node/536
Why should Walmart or any such stores be interested in the well being of India?
When it comes to a question of national interest (i.e., of 99% of the population and not of the other 1% filthy rich) and their own profit, why should we expect that Walmart will forego its profits and take care of the common man.
But we do expect because we are naive and think that anything "phoren" and "gora" is good for the country.
Walmart and a few such organisations control the entire foodgrain production, supply and distribution in USA. Are we really sure that it has done only good for that country? Is there not any truth that it has also harmed the interests of the common people there. Will the same model be suitable for India with a population of 120 crore and mouths. Whatever basic foodgrains, vegetables and fruits needed for India can be and are produced and marketed in India by their people themselves. Why should Walmart step in but for their own profits.
Marketing foodgrains, vegetables and fruits in India is done by the people in villages and small towns for their own consumption through shandies, which are part of our culture and tradition for 1000s of years. The shandies also serve as a social network for even marriage proposals. Why should we forego our culture and tradition of 1000s of years and go for profit driven model.
Will Walmart or any such organisations take care of people's economic, social or cultural needs in a vast country like India. The shandies will.
Walmart can take care of only the greed of people like Sonia, MMS or Chidambaram.
In India we have still not seen Walmart in "action" but that of one of its ilk Monsanto. Its promotion of Bt cotton through false media propaganda had caused so much havoc with the Indian farmer that many committed suicide. If you do not believe, please read the recent write ups on the same by reputed journalist Sainath and that of one senior parliamentarian Chaturvedi not of BJP but of Sonia's Congress itself.
Please do not go by media propaganda and those sitting on news channels with coat, suit and tie on touting as economists. They may be paid for by the MNCs themselves. Go by whether any such decisions will really do good to the people.
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Location: Somewhere in dreamland
Posted on: 15-09-12 22:20:01
Quote:
Originally posted by ramar2005
Why should Walmart or any such stores be interested in the well being of India?
When it comes to a question of national interest (i.e., of 99% of the population and not of the other 1% filthy rich) and their own profit, why should we expect that Walmart will forego its profits and take care of the common man.
But we do expect because we are naive and think that anything "phoren" and "gora" is good for the country.
[/quote
So you think our Desi companies will be interested in the well being of India? A lot of them have operations internationally and many have set up factories in other countries including china, thailand etc.
There is no guarantee they will setup factories only in india. They will go where they will get better subsidies.
Quote:
Originally posted by brown_bear
There is no guarantee they will setup factories only in india. They will go where they will get better subsidies.
I think you are mistaken.
India is seen globally as the fastest growing market & is poised to be one of the global leader in market terms in the next decade. Setting up factories anywhere in the world is fine, but the market for the end product is the real game changer..
After all why the FDI in retail (its the end consumer).
The impression I got from shopping at Walmart India (trade name Best Price), is their prices aren't very competitive, & they are lacking in their service.
At least for aviation, Kingfisher and SpiceJet are the big winners. Mallya is a smart businessman. He pulled it off with his continuous lobbying with the UPA. He's the one who will benefit the most as the airline is in trouble as he and his son blew money on sports teams, partying, etc without paying salaries to the airline staff. Hope foreign players bring more descipline to the aviation sector. Also other Indian players may enter the aviation market increasing the competition. Guess the Ambanis are watching.
