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December 02, 2011
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India Inc. asks Political Parties to Support FDI in Retail
NEW DELHI (Outlook): India Inc today said political parties should reach a consensus on the government’s decision to open the multi-brand sector to foreign investment. “We will request political parties to support the government’s
“I would urge (state) governments not to look at this issue from a narrow prism, but to look at it from the point of view of benefiting consumers, SMEs and employment,” he said. He expressed the hope that progressive states which are
CII Director General Chandrajit Banerjee
decision as it would help SMEs... There should be a minimum sort of an agreement in such areas (FDI in multi-brand retail),” CII Director General Chandrajit Banerjee told reporters here. Making a similar appeal, FICCI Secretary General Rajiv Kumar said this move would have a positive impact on the small and medium enterprises (SMEs) and employment. “Indian SMEs can expect additional orders of USD 60 billion annually from large retailers. This will be a fillip to SMEs,” he said. Chairman of CII National Committee on Retail and CEO of Aditya Birla Retail Thomas Va r g h e s e s a i d t h a t s t a t e governments should look at the long-term benefits.
concerned about consumers and inflation, will any way give licenses to retailers. “At the end of the day, the framework of Indian Constitution provides each state for taking its own decision,” he added. Assocham too supported the government, stating FDI in retail would create lakhs of new jobs and help reduce inflation. Without naming anyone, Kumar said industry associations which are opposing the foreign direct investment in multi-brand retail have vested interests. “This is just a fear that has been created for some vested interest. FDI in retail will be a gamechanger like telecom. I see only positive impact on employment,” he said. FICCI said associations
which are raising concerns that global retail chains like Walmart and Tesco would wipe out momand-pop stores are following a “politically motivated argument”. Some traders’ associations are arguing that about 40 million people employed in this sector would lose their earnings because of opening up of big foreign retail stores. “In fact, foreign stores will generate employment and even small stores would increase their employment to compete with the big retailers,” Kumar said. He added, opening of foreign retail chains would also help Indian SMEs overcome the problem of demand uncertainty. CII said that FDI can help small companies supply in large volumes, improve quality of their products and become vendor to international players, along with becoming cost-competitive in the global arena. FICCI also called for setting up of a regulatory body for the retail sector. “It (setting up a regulatory body) is a good idea... It will ensure better infrastructure in local markets like mandis,” Kumar said. At present, the government entrusts responsibilities like ensuring sanitation, adherence to labour laws, anti- adulteration at shops and mandis to individual inspectors. “A regulator should be set up in place of these inspectors,” Kumar added. According to FICCI, Indian retail market is about USD 490 billion, which is expected to double to USD 900 billion in the next 10 years. According to CII, opening of FDI in retail can increase organized retail market size to USD 260 billion by 2020.
Western Economies in Deep Freeze, Expats Look at India for Jobs MUMBAI (TOI): As the Western economies continue to remain in deep freeze, more and more foreigners, mostly from the US and Europe are looking at India for jobs, a trend that has seen up to 20 per cent spurt this year, according
reflecting an individual’s ability to adapt and deal with diversity, he explained. These professionals are mainly being hired in banking and financial services, automobile, pharma and retail sectors, apart from areas,
With growing unemployment in the Western world, India, one of the fastest growing economies in the world has seen up to 20% increase in hiring of expatriates this year alone
to head-hunters. According industry estimates, there are as many as 40,000 expats working in various industries in the country today. “Hiring of expats has picked up by 15-20 per cent at all levels since last year, mainly on account of India being one of the fastest growing economies offering huge job opportunities,” recruitment process outsourcing firm Elixir Consulting manager for International Practices Ratnesh Kumar said. Increasing number of expats are seeking jobs in the country on account of job cuts in their home countries, coupled with rising outsourcing and high taxes, he said, adding that this is happening more in the US and Europe. The Indian experience also adds values to the expats’ resume,
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where the domestic industry does not have competency like alternative energy, complex infrastructural sector, etc he said. “While CXOs are generally offered around $2,50,000 per annum, mid-manager level employees get $80,000-1,25,000 per annum,” he said. The number of foreigners seeking jobs in the country are no longer limited to the middle and senior levels, but is spreading over to beginners as well, he said, adding that at present, there are around 40,000 expats working in the country and the number is still growing. What is interesting is that these expats are given compensation almost at par with what is being paid in foreign countries. Continued on page 30