Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 150
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 151
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Warning (512): Unable to emit headers. Headers sent in file=/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php line=853 [CORE/src/Http/ResponseEmitter.php, line 48]
Warning (2): Cannot modify header information - headers already sent by (output started at /home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php:853) [CORE/src/Http/ResponseEmitter.php, line 148]
Warning (2): Cannot modify header information - headers already sent by (output started at /home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php:853) [CORE/src/Http/ResponseEmitter.php, line 181]
LATEST NEWS UPDATES | FDI row: India Inc's overseas retail biz on high FDI by Pradeep Thakur

FDI row: India Inc's overseas retail biz on high FDI by Pradeep Thakur

Share this article Share this article
published Published on Dec 3, 2011   modified Modified on Dec 3, 2011

While the government may be finding it difficult to get its FDI in multi-brand retail pass the test of Parliament, India Inc has been pledging huge investments in wholesale and retail trade abroad, including in countries like the US and the UK.
 
In the 2010-11 fiscal, investments of Indian companies in wholesale and retail trade overseas went up 78% as compared to the previous year - up from $1,052 million in 2009-10 to $1,870 million in 2010-11.

The trend continues with investments in retail trade made so far by Indian firms overseas accounting for $623 million in the first eight months of the current fiscal (till November). The other sectors that have been attracting attention of desi companies include manufacturing, financial, insurance, real estate and agriculture, forestry and fishing.

In agriculture too where India has opened FDI doors "under controlled conditions", Indian companies have made significant investments abroad. From $940 million in 2009-10, the overseas investment portfolio of domestic firms reached $1,200 million in the fiscal, ending March 31, 2011.

With the ongoing logjam in Parliament over FDI, it seems the flight of capital would continue for some time before Indian companies find lucrative returns here. On the issue of FDI in multi-brand retail, the Opposition has called it a complete sell-out to foreign multi-nationals. The Left and the NDA are claiming that it would lead to job losses and adversely affect the small traders.

Industry chambers have, however, supported the government move and have called it a long-awaited reform that would help small and medium enterprises improve supply chains. An industry estimate puts increase in income in the sector to upwards of $30 billion annually over the next decade. The foreign investments in areas like logistics and repackaging alone is likely to add millions of jobs, according to such estimates.

With big Opposition-ruled states against the FDI, it is expected that even if the Centre succeeds in rolling out the reform, nearly half of the 53 cities that qualify for setting up of multinational chains will miss out on opening their stores.

Out of 46 cities, which have a population of 10 lakh and above, can qualify for allowing multi-brand retail majors like Walmart to open shops, but the political leadership in 25 cities have announced their opposition to the move.

The Times of India, 4 December, 2011, http://timesofindia.indiatimes.com/business/india-business/FDI-row-India-Incs-overseas-retail-biz-on-high/articleshow/10974622.cms


Related Articles

 

Write Comments

Your email address will not be published. Required fields are marked *

*

Video Archives

Archives

share on Facebook
Twitter
RSS
Feedback
Read Later

Contact Form

Please enter security code
      Close