37. All about FDI

Even though there has been a talk for a long time about allowing Foereign investors like Wal Mart in investing in Retail business, the sudden decision (0wing to US Pressure) to allow FDI has raised a heated controversy in India. all abut this: Government’s view, the Opposition View and Media View. Points taken from TOI of 29th Nov. 11

74 thoughts on “37. All about FDI

  1. Government says that huge investments in the retail sector will take place. This will increase gainful employment opportunities in agro-processing, sorting, marketing, logistics management and front-end retail. It argues that at least 10 million jobs will be created in the next three years in the retail sector.

    1. Good intention from government is always welcome. This decision is part of LPG.

      Approximately 3 crore backlog not filled in various department, which can eventually feed entire family of job holder to keep away poverty. But Govt. is not keen on that, why govt. want foreigners to come to India and give job? what is the necessary? Don’t we have enough land, resource, mental power? from my perception I feel political party is only interested in %of commission they receive for every deal like FDI(recently), Nuclear treaty with USA( a year ago).

      Who has stopped this Congress party (ruled maximum period) in past 64 years to develop agro-processing, sorting, marketing, logistics management and front-end retail ?

      1. Exactly. US diplomats met top Indian leaders to lobby for the entry of Walmart and other companies in retail in India. The question is why this sudden decision? Government knows that it has the numbers in Parliament. It knows that DMK and Trinamul, whatever they say, will ultimately support the government and not allow it to fall. It shows the arrogance of the government and gives rise to the suspicion that much money has changed hands.

    2. Looking at the proposal of the FDI introduced by the Congress committee in the Winter Session of the Parliament, it is to be noticed that this session was to focus more on the implementation of Lokpal Bill, but the focus has been diverted to the FDI.

      Looking at the FDI introduction in this session, it must be seen that giving away a 100% retail in the market is not a solution. Prominently it steals away the Local market holders especially the small agro-economic strata and its loop. Investing in a market like “India”, is seen as a boost for the Foreign Investors in way that profits seeking and creating a short term benefits like creating jobs is an assurance , but for how long will it stick onto this is a biq question. We must also look into the fact that allowing FDI investments might improve the market to an extent, but the proportionality, factors and lot needs constant thought and decisions to be made properly.

      1. Your observation that the move aims to diverting the attention of the people from the Lok Pal Bill and Black Money, is absolutely correct. I would say that the political class is not keen on the two really important issues. Give a dog a bad name and then hang it! seems to be the policy. Create a controversy over FDI and then other issues will fade away. Also I am not sure how many jobs will be crated as against the loss of livelihood by the small traders and small farmers.

    3. It cannot be denied that jobs will be created. But we do not yet know the impact of the redistribution of jobs that will happen..i.e., petty traders would lose a portion of their trade, while many young, unemployed people would find jobs in walmart.

      And, also, multi brand retail in India is already there(Reliance, Big Bazaar). Only it is being opened up to foreign players now.

  2. FDI will help farmers secure remunerative prices by eliminating exploitative middlemen.. At present , for instance the farmer gets only six rupees for a KG of onions while the consumer pays Twenty rupees. The huge gap is swallowed by the middlemen. This will go and the farmer will no onger be dependent the middlemen.

    1. Eliminating the middle man is fine and paying the farmers the deserved price is applaudable. But what if these retailers sell it at a premium to the end-consumer?

      1. You can never be sure of the MNCs. I compare them to rat traps: easy to walk in but impossible to get out. They are the new East India companies. The EI’, coy bore the White Man’s burden and the new MNCs bar the burden of developing a `backward country’ like India. Why not bring the black money stashed abroad and use it for development: food processing, infrastructure etc., And have you any checks on the prices they will charge? And why not allow the Chinese also to set up their Walmarts in India. They will certainly and openly say when we complain: SHUT UP!

        1. Scenario described by Sir is brilliant. Take for instance if thge reverse situation would happen :

          Lets look at the Compulsory Licensing issues by the GOI towards Pharmaceutical industries to manfucatuire drugs in the local market and allow it to supply in the regional zones at a lower cost, if at all the Pahrma Industries were to ask the Pharma Industry from the west to issue a plant for manufacturing of the drug in the regional marketm we’d have to pay a huge sum and this is a huge pain for the common man to afford towards the high cost of the medicine. This scenario is an example of how and what would could happen if we allow a total % of FDI in India. The question is it will definitely burn a certain section of the Society in terms of views, opinions and many other factors.

          1. Yes. We have to pay through our nose for patents and instead of giving us the license to manufacture drugs, they will dump drugs banned in the West in India.

      2. The question raised by Aravind is right. The point we must note is that, “Middlemen” always do exist no more what the scenario is. Be it be a small business or a big business, will prevail “our middleman” in the situation. The questions of ethics doesn’t prevail and despite the fact that even if FDI helps the farmer, an assurance made by them too would be like a “middleman’s assurance”.This raises an alarm to wonder. For this, will the Govt have a regulatory body to look into the assurances made? Can / Will the regulatory body be true what ever happens?….. Well these are idealistic situations to hope for.

    2. Hope Foreign MNC’s to help Indian farmers ensuring remunerative prices for food produced, then what is the necessary of Govt. for farmers? Even FDI may stop farmers suicide count.

      Govt. has promised in written for strong Lokpal bill, but they betrayed citizen of country. How to believe Indian Govt. on FDI?

      Many times I’ve observed that our dear politicians speak only half portion of agreement, what about other half? what are their demerit? what is the guarantee from Govt. that this FDI and 2008 nuclear treaty with USA won’t produce a similar effect as Bhopal tragedy?

      I can’t trust our Politicians. They are short sighted about country future. I support FDI if it is truly in the interest of countrymen.

      1. As per view, let me assure you of one fact straight: “ FDI cannot heal the Farmer’s Suicidal rates”, the question is the problem lies somewhere in the Governance of the Country. We cannot disapprove of our role Govt in the affairs; definitely you need the Govt to be around.
        Lokpal is yet to happen. In today’s Hindu, Ms Sonia has urged the opposition party to successfully pass the LokPal bill. The reason being Anna is preparing for a round 2 of the fasts. So the govt wouldn’t want another Nation Drive for this to occur, and for sure if it does happen, Congress can pack its bags ready!! So it’s not in a give-give situation. We need to watch out for few more days before the session closes. Some hope can prevail.
        Politics is here to stay. Call it good/bad/ugly; it is prevalent in any country. In India, it will remain always no matter. The solution is “not bad politics or no politics, but what we need Good politics!!” This calls for Good Governance and level headed administration to rule the Nation.

    1. NO WAY! considering our monsoon pattern and other issues such as protests against GM seeds and imported fertilisers, we cannot ensure chain efficiency. Possibility is that the middlemen will be eliminated and the only point of sale for the farmers will be the MNCs. So it is again back to square one. The MNCs will turn into virtual middlemen forcing the farmers to sell their produce at the price they quote. As sir put it, these are the neo East India companies.

      1. I agree with your point regarding monsoon.

        It is a new age of welcoming New East India like companies to setup their trading centers to monopolize Indian farming system. Obviously this will eventually may increase greediness to monopolize political rule, no doubt.

        Will these MNC’s buy food items in low quantity like 50Kg or 75Kg(because many farmers have very little scattered land with different soil, water availability — eventually they can’t grow same crop in all scattered land.)

        Still most of the farming land in the country is not irrigated, which eventually monsoon play vital role. So, this monsoon effect may leads to discrimination by MNC’s towards farmer in the monsoon dependent region.

      2. Instead of a large number of middlemen, we will have one most powerful middleman, the MNC. And it willhave power even to overthrow governments. We have seen all ttis in Latin America and south America

        1. @ Sir : perfect scenario related!! If the MNC’s grip the market, holdings of Indian Market will driven to the wall, leading to a colonization, upthrowal of Govt and who knows even a monopoly!! Sad, but true, it can happen!!

      3. Your point is valid!! ” Neo East Indian Companies” – these companies will lure the farmers to the concept of ” benefital propaganda, poor “literate & illiterate” farmers who need money for survival and with the little that they have, will fall for this propaganda!!

        1. As if the condition of Indian farmer is good today?
          I am sure when it will be the question of MNC overthrowing the government, they will be forced to take appropriate actions. and as Arun said that politics is here to stay and so are politicians.

      4. But the argument is that when the number of Retail chains increase, there will be competition which will force them to offer more to their clients(farmers) to remain competitive.

        And consumers also will get a better deal. Look how the prices of cell phone calls came down from Rs. 16/ min to less than 50 paise today!

        If the MNCs resort to non competitive techniques like predatory pricing, then we have the Competition Commission which will do its job.

        1. Your view is right. But the fact is holdings in the Indian Market are a key contributor. Already there is mayhem of the % of the holdings to be allotted to the MNC’s as against the Indian Industries. In any country, there should not be complete holdings by a foreign investor as it could lead to dominance. Perhaps in the game of “competition, gimmicks will always happen and this is a bait for a consumer to choose between the odds”. To prevent this, we need a constructive holdings of market ratio of holdings [b/n the MNC’s & Indian Companies] more favoring the parent country. Consumers are always the target spots. Leverage your prices and see a mad rush, leverage by different companies in the prices of their commodities at the same time, watch the mayhem of consumers to begin!! – It’s a highly debatable aspect

        2. Brilliant Aneesh! i completely agree with You as there can never be Monopoly in the retail sector. the market competitive forces will keep a check.

      5. As sir quoted the example:Farmer gets Rs5/kg. and the end user pays 20. The cost almost becomes four times. I am sure with the FDI coming into the picture this middle cost will definitely reduce. Even if we get the money lying abroad, the question of its proper utilisation for development still remains a question mark. It will lead to another scam like CWG. Development in terms of infrastucture is need of the hour for our county.

  3. Government rules require that the Foreign investor invests at least a hundred million dollars. It demands that half the amount should be invested in back-end infrastructure, including cold chains, refrigeration, transportation, packing, sorting and processing. This is expected to considerably reduce post-harvest losses. Fruits and vegetables, not to speak f grains, all rot because we have poor storage fancily..

    1. The view stated by Sir is correct. There is a saying that comes to myh mind. For the MNC’s to invest here it goes ” START AFRESH FOR A NEW BEGINNING, and later you’l reap your benefits!!” who gains at the cost of one’s loss will always a mystery!!

  4. The MNCs have to mandatorily secure a minimum of 30% from Indian micro and small industry is mandatory. This will provide the scales to encourage domestic value addition and manufacturing, thereby creating a multiplier effect for employment, technology upgradation and income generation.. My view is they may source products which they think will sell. They are not going to buy the ragi flour, of all things. They will not source our desi sweets but will bring their chocolates and cookies which our hoi polloi will enthusiastically devour.

    1. I agree with your view.

      If MNC’s support products which they think will sell, leads to gradual

      declining of traditional products.

      To mandatory support to micro and small industry, MNC’s force farmers to

      grow Bio Technologically modified seeds, leads to good yielding but destroys

      Indian traditional yield varieties.

    2. This problem of buying/selling only the ‘fast selling’ goods will remain, FDI or no FDI.

      It is because our consumption patterns have changed. Even road side shops sell foreign chocolates today!

      Our traditional handicrafts, food producers etc are suffering due to perpetual neglect. That problem must be addressed on a different plane.

      1. I agree with your view on ” Fast selling Goods”. The today’s pattern reveals around the misnomer such as “in thing” or “morenization zone of 21st century”. The likings of the many are adaptive to change and rely on quick, immediate needs. So to meet the needs you get the demands. But as you wonder on this lucrative thing, its just a drive, an adrenaline drive only to lead small “forgotten” simple aspects of life (such as the small scale industries etc) to fall in the drain.

        It will be a debate on the affordability of consumers, the quality that they “see” is as good to them and most of all the pleasure behind their palattes.

    3. This will a hard hit situation the bellies of poor hardworking and toiling farmers. Certainly inflow of foreign products will move , this will land in only the metropolitan cities atleast. But the fact 23 states will allow FDI to prevail, who knows the numbers will dwindle

  5. And Government assures us that a strong legal framework in the form of the Competition Commission is available to deal with any anti-competitive practices, including predatory pricing. .(Sotto voce: And will the Competition Commission come under Lok Pal!)

    1. Indian politicians frame rules which sometime virtually useless. Govt. want MNC’s to come to India and spend 30% mandatorily on small scale and they must not compete in the business, then they will collapse with few months/years. If MNC’s going to collapse then why they will think of coming to India? and Why our politicians want such surely collapsing MNC’s because of Indian laws?

      I suspect a foul play from our politicians.

      Once MNC’s come to India, through IMF and International Bank, USA will ask Indian Govt. to change the laws to suit american companies(as they are already asking for nuclear deal related).

    2. @ Sir : as per the Competiton Commission body , it’l be just be another regulatory body. This will be a burdened factor of formation , and then allowing this committee to monitor. More over if the committee says “all that glitters is not gold” scenario as per the products released by the companies under the FDI, there would definitely be some hand in glove, or covering up the issues to take place. There are errors bound to happen.

      The question is “By putting them under LokPal, will it serve a purpose?

      I am quite sure, it ‘l be another list of other “scams” or “screenings” to come under the light and even if this committe comes to monitor the happenings, I am sure the results will take time to come out under the public view.
      Moreover let’s implement the LokPal bill successfully and then lets see if there is the exiustence of FDI coming into action. Lets wait and watch!!!!

  6. There has been impressive growth in retail and wholesale trade after China approved 100% FDI in retail. Thailand has experienced tremendous growth in the agro-processing industry, says Government. But do we have sweat shops as china has to sell to the MNCs at dirt cheap rates? And to we have a `Pleasure Industry’ like Thailand which the MNCs can source?

    1. Our politicians are clever. They have not learnt from previous mistakes, like using Tractors, Chemicals from foreign directly to cultivate land in India without studying Indian environment.

      Our politicians making dirty tricks and using unstudied examples.

    2. @ Sir: India is still trying its best to eeradicate poverty, the avg cost of a proper healthy meal per day per person is risen to 35 INR which is a typical mind biggler of smaller economic strata. The agriculture in India has huge setbacks, including mainting the in house products, markets for small scale industries have a huge upheaval task to gain its emergence, …………………….. the list goes on. India to ascertain a 100% FDI if given to the MNCs will make a huge mockery out of itself.

  7. In Indonesia, even after several years of emergence of supermarkets, 90% of fresh food and 70% of all food is still controlled by traditional retailers.

    * In any case, organized retail through Indian corporates is permissible. Experience of the last decade shows small retailers have flourished in harmony with large outlets.

    And my comment: God is in Heaven resting with his Damsels and all will be well with us poor mortals. Comparisons are odious. Are out farmers and small traders strong enough to dsal with the MNC Sharks?

    1. Sir, the argument is that the economic niche/markets targeted by the traditional traders and MNC retail chains are different.

      A good example would be the survival of idli/sambar, halli thindi etc in spite of the McDonalds, KFCs etc.

      And both kinds of traders make profit!

      But, what will happen in India, we only have to wait and see.

      1. @ Sir and @ Aneesh: the key word is “balance”; ” governing of economy” is all the domicile of the context [ i.e.- FDI]

        The rising inflation, the increasing trend of GDP and in -house local problems are factors that can cause a huge effect onto the “System”.

        Meanwhile lets note : The Bharat Bandh on Dec 1 awakening has started. So the impact begins and rightly said by Aneesh, “lets wait and watch” – In short ” we chaps are the Soup Boys!!!”

  8. The opposition points out ( Sptto Voce: Government has its way while Mamta will have her say!) This Move will lead to large-scale job losses. International experience shows supermarkets invariably displace small retailers. Small retail has virtually been wiped out in developed countries like the US and in Europe. South East Asian countries had to impose stringent zoning and licensing regulations to restrict growth of supermarkets after small retailers were getting displaced. India has the highest shopping density in the world with 11 shops per 1,000 people. It has 1.2 crore shops employing over 4 crore people; 95% of these are small shops run by self-employed people . Our recycling and repair industries alone employ crores of people. Go to Siddiah road in Bangalore or Chandni Chowk in Delhi. You will understand what I mean.

  9. Global retail giants will resort to predatory pricing to create monopoly/oligopoly. This can result in essentials, including food supplies, being controlled by foreign organizations. Our national symbol will neither be the Tiger, nor he Peacock nor the Elephant but a huge begging bowl! Will our people never learn?

  10. Fragmented markets give larger options to consumers. Consolidated markets make the consumer captive. Allowing foreign players with deep pockets leads to consolidation. International retail does not create additional markets, it merely displaces existing markets.

    * Jobs in the manufacturing sector will be lost because structured international retail makes purchases internationally and not from domestic sources. This has been the experience of most countries which have allowed FDI in retail.
    Kudos to the Times of India (28 Nov 11) for having so beautifully summarized the point.

    1. Absolutely true point.

      The major concern in India is that our manufacturing sector is weak, and suffering. They will suffer the most if and when their markets will be displaced by Retail Giants.

      In China, it is the opposite. Their service sector is not well developed, but manufacturing sector is strong. Thus, they are able to produce more and more and sell more and more to Wal-Mart, TESCO etc.

      In my view, it is sad that our political class is debating the issue of FDI on an ideological plane. A better thing would be to consider the production-consumption patterns, market response, past impact of FDI in India vis-a-vis that of Latin America, China, S.E.Asian countries and compare them empirically.

      Also, we have already plunged (almost) head on into Globalisation a la 1991 BoP crisis. Is going back into Nehruvian Socialism a feasible option now?

  11. The argument that only foreign players can create the supply chain for farm produce is bogus. International retail players have no role in building roads or generating power. They are only required to create storage facilities and cold chains. This could be done by governments in India. Give the private sector proper incentives, make better use of available resources and ask our financial institutions to set apart a percentage of their funds for building storage houses and Cold chains and this will work. Let the politicians be honest; instead of calculating the commissions they will get, let honest NGOs be entrusted with the task. Nor am I very sure what commissions will be paid by MNCs regarding the storage facilities and cold chains: for instance acquiring land for the same (Yeddyurapppa: notification – bribe – de-notification: game : all over again)

  12. Comparison between India and China is misplaced. China is predominantly a manufacturing economy. It’s the largest supplier to Wal-Mart and other international majors. It obviously cannot say no to these chains opening stores in China when it is a global supplier to them. India in contrast will lose both manufacturing and services jobs. The TOI has pointed out the opposition view very ably. Through fine graphics the TOI in its issue two days back has summarized the debate on FDI.

  13. The Editors of TOI feel that provided proper care is taken there is no great harm in allowing FDI. I agree but my question is regarding the motive of the UPA II in bringing up the issue now when there are more urgent issues like the LOK Pal Bill and Judicial accountability Bill are demanding our attention.. I again ask: WHY NOW? Mr. Singh , I suspect your motives; and that includes the whole core committee gang.

  14. The Times editors write: Fears of small shopkeepers getting displaced are vastly exaggerated. When domestic majors were allowed to invest in retail, both supermarket chains and neighbourhood pop-and-mom stores coexisted. It’s not going to be any different when FDI in retail is allowed. Who, after all, will give home delivery? The local kirana. Why would anyone shun them? But what about the framers who will lose their land? What about the fears of mon-culture emerging. Will not the MNCs take advantage of cheap labour and make our farmers grow things that the MNCs can sell elsewhere like buying milk cheap and turning it into chocolates and cheese for foreign markets and thus depriving our people of milk. The Great Indian Milk Man, Mr Varghese Cherian warned us of this long ago.

  15. The TOI remarks: If anything, the entry of retail big boys is likely to hot up competition, giving consumers a better deal, both in prices and choices. Mega retail chains need to keep price points low and attractive – that’s the USP of their business. This is done by smart procurement and inventory management: Good practices from which Indian retail can also learn. I think that this is a point well taken. But there wiull be a huge churning in the labour market.

  16. The TOI editors write: The argument that farmers will suffer once global retail has developed a virtual monopoly is also weak. To begin with, it’s very unlikely that global retail will ever become monopolies. Stores like Wal-Mart or Tesco are by definition few, on the outskirts of cities (to keep real estate costs low), and can’t intrude into the territory of local kiranas. So, how will they gobble up the local guy? Secondly, it can’t be anyone’s case that farmers are getting a good deal right now. The fact is that farmers barely subsist while middlemen take the cream. Let’s not get dreamy about this unequal relationship. Hope that our farmers will get a better deal Now they get a very raw deal. Striking a personal note, I have let a lot of tomatoes and cauliflowers rot on the field since the cost of transportation would not even be met by the money paid by the wholesaler to me.

  17. With Tamil Nadu chief minister J Jayalalitha raising the red flag against FDI in multi-brand retail, nearly half of the 53 cities may slam the doors on global chains. According to the 2011 data on the Census of India website, there are 46 cities that had a population of 10 lakh, of which 25 are unlikely to allow the likes of Walmart, Carrefour andTesco to open stores since the political leadership in these states have gone on the offensive against the government’s move to permit global retailers to set up shop in the country. The statement issued by the government after the Cabinet meeting on Thursday had said 53 cities would benefit from the new policy

  18. Apart from Jayalalitha, the BJP-ruled states,Uttar Pradesh chief minister Mayawati, West Bengal CM Mamata Banerjee and Bihar CMNitish Kumar have made public their stand against the latest FDI liberalization move from the UPA, which is keen to shake off the perception of policy paralysis. Among the BJP-governed ones, Gujarat chief minister Narendra Modi has welcomed the opening up. Although in the past, he has been autonomous of the leadership, he is unlikely to deviate from the party’s stand.

  19. That leaves the foreign retailers to tap into Congress-ruled states such as Maharashtra, Rajasthan, Haryana and Andhra Pradesh apart from Punjab, where BJP ally Shiromani Akali Dal has supported the move, and Orissa.

    Commerce and industry minister Anand Sharma said that several states ranging from Punjab and Orissa to Maharashtra and Rajasthan have backed the UPA’s reform move.

  20. But several cities such as Bangalore, Chennai, Ahmedabad and Vadodara would put up the ‘closed’ sign given that retail trade is a state subject and opening of stores require clearances from municipal bodies, registration under the Shops & Establishments Act and the sales tax department apart from support from the district administration.

  21. Jayalalitha’s opposition to multi-brand retail will impact entry into three cities – Chennai, Madurai and Coimbatore. “The purported intention of the government of India seems to be to bring more foreign investment into the country to improve market efficiency and bring down double-digit inflation prevailing in the country, mainly due to the series of policy blunders made by the Congress-led UPA, government at the Centre. Does our nation lack such resources or the technology to deal with such problems? The central government should realize that constraints on farm products, on the supply side, which is one of the contributory factors to food inflation cannot be addressed through the FDI route, but only by squarely addressing the infrastructural constraints through appropriate policy support,” she said in a statement.

  22. In the terms of number of cities, the biggest impact will be felt in Uttar Pradesh, where seven cities – Meerut, Ghaziabad, Agra, Lucknow, Kanpur, Allahabad and Varanasi – will remain out of bounds. Then there is Gujarat and Madhya Pradesh, with four each.

    While the global giants are still going to stay interested, the threat of arson, violence and the political dimension that the cabinet nod has acquired, the appeal would have come down a notch despite the vast potential that Middle India offers to international chains dealing with dwindling demand in their home markets.

  23. Based on the present support base, Maharashtra, with large middle-class dominated areas in and around Mumbai and Pune will emerge as the most attractive destination given that there are eight towns and cities where foreign retailers can open stores.

    On its part, the government is hoping that sooner than later, states will realize the opportunity that modern retail format, with foreign participation, offers.

  24. First Government said that MNCs should outsource 30 percent of their requirements from ANY WHERE IN THE WORLD; but following the furore in the country they performed a U turn and said that they should be outsourced from SMEs in India. But this violates the WTO regulations. The US and UK have already gone to the WTO since Govt of India insisted outsourcing from India in the National Solar Energy Mission. So there is a lot of Ifs and Buts in this outsourcing.

  25. Besides the SMEs (Small and Micro Enterprises ( an SME is defined as one with a total fund of Rs 5 crores) complain that the MNCs take a long time to settle their bills and they have no financial stamina to wait for a long time.

  26. The Vijayawada Chamber of Commerce and Industry has taken serious objection to the Central government taking decision in favour of FDI in retail sector. Chamber president Gaddam Subba Rao said crores of people would lose employment due to this move.

    In a statement here, Mr. Subba Rao said small traders and businessmen would be severely affected if the foreign companies were permitted to enter the multi-brand retail market with 51 per cent investments. Another twist in this is the lifting of the limit placed on the FDI up to 51 per cent in single brand retail category. (raising it to 100%)

  27. FDI in retail will enslave India: Hazare
    Last Updated: Wednesday, November 30, 2011, 21:10 340 3 Tags: FDI, retail, Anna Hazare Ralegan Siddhi: Opposing FDI in the retail sector, activist Anna Hazare on Wednesday said the move would lead to enslavement of the countrymen and will not benefit the farmers as claimed by the government.

    “If people are saying it (FDI) should not happen, why are you insisting? The British came to India to trade and for 150 years, ruled us, enslaved us. Do you want to have a repeat?” he told a press conference on Wednesday evening.

    “They (the foreign investors) will spoil the water and the environment. The government should consider this,” he said.

    On the claim that farmers will be benefited by FDI in retail, Hazare said, “If it were so, in the 65 years after independence, farmers would not have committed suicides.”

    He said he favoured unanimity among political parties on the issue. “All parties should rise above narrow considerations. There should be no inter-party differences,” he said.

  28. FDI will surely reduce the inflation which is a serious matter at the present circumstances. by allowing the FDI in retail sector the prices of the goods will surely go down. today inflation is rising to 8% which is certainly a matter to be discussed and fixed. to curb inflation RBI is increasing the rates and repo rates which has become a problem for the banks to handle. while banks are increasing the rate of interests which has become a burden to the customers. like this a chain is affected.
    Hence FDI in retail may ease this chain of problems.

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