Powerpoint-Presentation-on-FDI-in-Retail.ppt

audit ques

1. PRESIDENT
NAG VIDARBHA CHAMBER OF COMMERCE, NAGPUR

2. 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.
Presented By Mr. B.C.Bhartia,Nagpur.

3. “WE,THEPEOPLEOFINDIA,havingsolemnlyresolvedtoconstitute
IndiaintoaSOVEREIGN SOCIALISTSECULAR DEMOCRATIC
REPUBLICandtosecuretoallitscitizens:
JUSTICE,social,economicandpolitical;
LIBERTYofthought,expression,belief,faithandworship;
EQUILITYofstatusandofopportunity;andtopromoteamongthemall
FRATERNITYassuringthedignityoftheindividualandtheunityand
integrityoftheNation;
PREAMBLE
Presented By Mr. B.C.Bhartia,Nagpur.

4. INDIA UNDER MNC’s REGIME :
WILL THE PREAMBLE BE RECONSTITUTED .
“WETHEDICTATORSTOINDIAhavingsolemnlyresolvedtoReconstitute
IndiaintoaSLAVERY CASTEBASEDUNSECULAR DIRECTED
DEMOCRATICREPUBLICandtoENSUREtoallitscitizensthat:
JUSTICE,social,economicalandpoliticalisdiscriminatory
LIBERTYofthough,expression,belief,faithandworshipispermittedas
longasitisinlinewithMNC&WorldBankthoughttomakeworldasingle
religion,beliefinsinglegodandfaithinthemassingleeconomicpower.
EQUALITYofstatusandopportunityisnotapplicabletolocalcitizens.
ANDTOPROMOTEAMONGTHEMALLINDIVIDUALITY,HATREDFOR
OTHERCASTEANDSURRENDER OFTHENATIONTOTHELONE
ECONOMICPOWERONEARTH.
Presented By Mr. B.C.Bhartia,Nagpur.

5. 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
Presented By Mr. B.C.Bhartia,Nagpur.
FDI in Retail Trade
Fringe Benefit Tax
New Naka Complex
Cash Transaction Tax
&
Quarterly ‘C’ Form

6. Retail Traders
Telecom
Aviation
Banking
Insurance
Steel
Information
Technology
Infrastructure
Pharma
Mining
Professional
Education
Presented By Mr. B.C.Bhartia,Nagpur.

7. 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.
Presented By Mr. B.C.Bhartia,Nagpur.

8. HISTORIC CONTRIBUTION BY
TRADERS :
DuringPre-independencedaysthetradershavehelpedthe
leadersinallformslikemanpowerandmoney.
Inallsocialactivities&establishmentofschools,colleges,
hospitalsmandir,masjidetc.tradershavecontributed.
Roundtheyear24hoursaday,tradershavemadeallthe
goodsrequiredbycustomeravailabletothem
Duringthedaysofacuteshortages,thetradershavesomehow
managedtoarrangegoodsforitscustomers.
RelationshipofIndiantradersandcustomersismuchmore
thanmerebusiness
Indiantradershavealwaysseencustomersatisfactionabove
personalprofit.
Presented By Mr. B.C.Bhartia,Nagpur.

9. SUPPORT AND HELP
TO GOVERNMENT
Tradersareselfemployedandgiveemploymenttoentirefamilyand
others.
Tradersgiveemploymenttothatneglectedsectionofsocietywho
donotgetemploymentanywhere.
Traderstakecareofentirefamilyofhisemployees.
AlldirectandindirecttaxesleviedbyCentral,Stateandlocalgovt.
aredepositedbytraderinGovt.treasurywithoutanychargesor
commissionfromGovt.
Duringfamine,floods,earthquakestsunamiandothernatural
calamities,thetradershavealwayscomeoutopenlytoextendfull
helptoGovt.
Presented By Mr. B.C.Bhartia,Nagpur.

10. TRADERS BEING IGNORED
BY GOVEREMENT
InOrdertogainpoliticalmileage,tradershavebeentermedby
objectionablewords.
Afterindependenceoneafteranotherantitrade,antitraderlaws
havebeenmade.
TradershavebeenmadeslavesunderInspectorRaj.
Time&againnewlegislaturesarebeingimported.SmallTraders
havebeenputunderheavyburdenofbookkeeping,taxationand
compliancesundervariouslaws.
Inthenameofdevelopmentandroadwideningtheshopsarebeing
demolishedonlytogivepassagetohawkersandfootpath
shopkeeperstoestablishtheirbusiness.
LocalGovt.failedtobuildnewmarkets.oldtraditionalmarketsin
differentlocalitiesarebeingremovedtomakewayforBigstoresto
getcustomers.
Presented By Mr. B.C.Bhartia,Nagpur.

11. CONTRIBUTION OF TRADERS
IN ECONOMY
Incomparisontoworld,Indiahaslargestnumberofretailtraders.
Inourcountrythereareabout1,25,00,000retailoutlets.
Retailtradecontributesabout10%-11%ofourcountry’sGDP.
TotalturnoverofretailsectorisaboutRs.8,75,000/-crores.
Afteragriculture,Retailtradeprovidesemploymenttomaximum
numberofpersons.
1.25croreshopsareprovidingemploymenttoabout4crorepeople.
InastudyconductedbyReserveBankofIndia,IndiaRetailTraders
chargelessmargin.
Presented By Mr. B.C.Bhartia,Nagpur.

12. FOREIGNERS ARE MORE
DEARER THAN INDIANS
Indiantraders,BusinessmanandIndustrialistshaveestablishedtheir
leadershipacrosstheworld.
Indiaisemergingasabigeconomicpower.
Ourcountryisprogressinginalleconomicfields.
Wehavelaggedbehindininfrastructure,irrigationpoweretc.i.e.such
sectorswhichwereundercontrol/monopolyofGovt.Wecouldnotgrow
tofullpotentialinsuchsectors.
Theseinfrastructuresectorsrequirehugeinvestmentwithlargergestation
period.Hencespecialemphasishastobegiventothesesection.
Itisunfortunatethatinsteadoffocusingdevelopmentofsuchcoreareas
thegovt.wanttohandoverourestablishedretailtradetoforeigners.
Itissurprisingthatsuddenlygovt.feelsthatourtradersareincompetentto
servethepeopleorhandleretailshopsORindisguiseofForeignDirect
Investmentourretailtradeisbeingsoldtoforeigners.
Presented By Mr. B.C.Bhartia,Nagpur.

13. WHAT WAS THE CRITERIA
FOR FDI
Sometimein1991-92,thethenFinanceMinisterand
presentPrimeMinisterDr.ManmohanSinghjireferredto
certaincriteriaforallowingForeignDirectInvestment.
Thesewere:
1.Establishmentofbasicindustriesrequiringhugecapitaland
advancedsophisticatedtechnology.
2.Infrastructureprojectslikeelectricitygenerationroad
buildingetc.
3.Projectswhichwouldgenerateemployment
Presented By Mr. B.C.Bhartia,Nagpur.

14. 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.
Presented By Mr. B.C.Bhartia,Nagpur.

15. WHAT DO
FOREIGN / MULTINATIONAL
COMPANIES DO
In60sBigforeignhousesenteredinretailtradeinotherpartsof
world.
Thisisagainstourcultureof“OnefamilyOneshop”.
Thesebigcompanies,inordertocrushcompetitorssellgoods
cheap.Lateroneffectivepricesofgoodsareincreased.
ThesecompaniesbuymaterialfromInternationalmarket.Hence
localproducersareputtoloss
Thesecompaniesbuyinbulkquantitiesdirectlyfrommanufacturers.
Theintermediariesloosebusiness.
AfterconqueringthemarketsofEuropeandAmerica,these
companieshavenowenteredAsianmarkets.
AfterestablishingtheirfootingsinThailand,Indonesia,China,
Japan,Philippines,etcinAsia,thesecompaniesarenowtargeting
India.
Presented By Mr. B.C.Bhartia,Nagpur.

16. EMPLOYMENT GENERATION
UNDER EXISTING SYSTEM
FARM LABOURS
HAMALS
DALALS
BROKERS
TRANSPORTERS
TEA SHOP OWNERS
HOTELS
DHABAS
SHOP KEEPERS
ALLWORKSINFARMBYMACHINEUNDERCORPORATE FARMING
AUTOMATICTRANSFERANDPACKINGBYMACHINES.
SALETOCUSTOMERS THROUGHCHAINOFDEPARTMENTAL STORES.
LARGENUMBEROFSELFEMPLOYEDTOBECOMEUNEMPLOYED.
AFTER M.N.C. TAKE OVER
Presented By Mr. B.C.Bhartia,Nagpur.

17. 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.
Presented By Mr. B.C.Bhartia,Nagpur.

18. WHAT WILL HAPPEN
TO
LOCAL RETAIL TRADE
NoofRetailoutletsBetween1981-99inUnited
Kingdomcamedownfrom56862to25800.
Between1970-80inEuropeabout4lakhsRetailshops
wereclosed.
CompetitionshallbelimitedtoBigRetailHouses
Intheyear2000FiveBigFastfoodcompaniescaptured
followingpercentmarketshare:
Country % Share
Norway 99
Swezerland 88
Sweden 94
UK 64
Portugal 57
Presented By Mr. B.C.Bhartia,Nagpur.

19. 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.
Presented By Mr. B.C.Bhartia,Nagpur.

20. WHAT HAPPENED IN CHINA
Thereisaracetocapturemore&morespaceforretail
trade.
Thereisallegationoffloutingthenormsonthesestores.
Thereisangeragainstthesecompaniesamongst
generalpublic.
Mediaisalsoreportinghowtraditionalshopshave
beenthrownout.
Thesuppliersandmanufacturesarealsofacing
problem.Theseareclosingdown.
Presented By Mr. B.C.Bhartia,Nagpur.

21. WHAT HAPPENED IN OTHER
ASIAN COUNTRIES
Othercountriesarealsounhappy.Manycountrieshavestarted
takingprecautions.
IndonesiaandMalaysiahaveestablishedzoneswithinwhichthese
foreignerscandotrade.
InJapanBigcompanieshavetodiscusswithsmalltraders.Thereis
Zoningsystemalso.Hencethesecompanieshavetoestablishtheir
shopsoutsidecitylimits.
Thereiswidediscontentamongstshopkeepers&peopleinthe
countriestowhichthesestorebelong.
ThecitycounselorofCalifornia&Chicagohaverefusedtoallow
openingofnewshopstoWALMART.
Theseshopsarerequiredtotakepermissionincountrieslike
France,GermanyandAmerica.
Presented By Mr. B.C.Bhartia,Nagpur.

22. NOW ITS TURN OF
INDIA
ThetoughstandtakentillrecentlybyCentralGovt.,ForeignRetail
TraderscouldnotenterIndia.
ItisunfortunatethatCentralCabinethasgivenapprovaltoFDIin
RetailTrade.
ShiftofMajorretailtradetothesebigcompanieswillrendersmall
traders&theiremployeesunemployed.
Manycompanieswiththehelpofcontractfarmingwillsellgoods
producedinfarmsdirectlyfromtheirchainofstores.
Afterestablishingcontroloverpurchases&salethesecompanies
willstartdictating.
Thesecompanieswillkeeponlygraduatesandaboveintheir
employment.Therewillbenoscopeforemploymenttounder
graduateandothers.
Intheeventofnonreceiptofpaymentofsupplies,itbecomes
impossibletoreachowners.
Presented By Mr. B.C.Bhartia,Nagpur.

23. CONTRACT FARMING
COLLECTION OF
AGRICALTURE PRODUCTS
TO OWN FACTORY
TO OWN DEPT. STORE
TO CUSTOMER
Presented By Mr. B.C.Bhartia,Nagpur.

24. REQUEST STOP FDI
IN
RETAIL TRADE
IfDomesticRetailTradeisallowedbyBigMNC’setc.,therewill
beLargeScaleUnemployment.
Anewclassofunemployedcalled“UnemployedTraders”willjoin
theexistingforceofunemployedpersons.
Thesecompanieswillsellinternationallyprocuredproducts.
DomesticIndustrywillsuffer.
EverybodyknowshowBigFisheatsawaysmallfishes.
Keepingtheexperienceofothercountriesinmind,Govt.should
nottakeanysuchdecisionforwhichthewholecountryand
cominggenerationwillhavetosuffer.
Presented By Mr. B.C.Bhartia,Nagpur.

25. 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?
Presented By Mr. B.C.Bhartia,Nagpur.

26. 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.
Presented By Mr. B.C.Bhartia,Nagpur.

27. ns’k dk O;kikjh
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fd ukSdj’kkgh dk xqyke cu x;k O;kikjhA
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O;kikj djus ds fy, le; [kkst jgk O;kikjhA
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,slh gksM+ yxh gSa fd lgh ns’k izseh dks <waM+ jgk O;kikjhA
yksdrkaf=d ns’k esa rkuk’kkgh ljdkj fd ekj [kk jgk O;kikjhA
dq’kklu vkSj Hkz"V iz’kklu dk t[keh viuh ekSr dk bartkj dj jgk
O;kikjhA
Presented By Mr. B.C.Bhartia,Nagpur.

28. INDIA : MY COUNTRY
DON’TSEEINDIAASPOPULATIONOFONEHUNDREDCRORE
MOUTHSTOFEED.
SEEITASAMARKETOFONEHUNDREDCRORECONSUMERS
WITH
TWOHUNDREDCROREEYESTOWATCHYOURPRODUCTSAND
TWOHUINDREDCRORESHANDSTOBUYYOURPRODUCTS.
WORLDS LARGESTEMERGING RETAILMARKET:WHOWILL
CONQUORIT:WEORTHEY?
DO NOT MAKE MY GOVEREMENT AS,
GOVEREMENT BYMNC,
GOVEREMENT OFMNCAND
GOVEREMENT FORMNC’S
Presented By Mr. B.C.Bhartia,Nagpur.