By

S. Rama Krishna Chary

JRF-Commerce

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.

“WE, THE PEOPLE OF INDIA, having solemnly resolved to constituteIndia into a SOVEREIGN SOCIALIST SECULAR DEMOCRATIC REPUBLICand to secure to all its citizens :

JUSTICE, social, economic and political;

LIBERTY of thought, expression, belief, faith and worship;

EQUILITY of status and of opportunity; and to promote among themall

FRATERNITY assuring the dignity of the individual and the unity andintegrity of the Nation;

PREAMBLE

INDIA UNDER MNC’s REGIME :

WILL THE PREAMBLE BE RECONSTITUTED.

“WE THE DICTATORS TO INDIA having solemnly resolved to ReconstituteIndia into a SLAVERY CASTE BASED UNSECULAR DIRECTEDDEMOCRATIC REPUBLIC and to ENSURE to all its citizens that :

JUSTICE, social, economical and political is discriminatory

LIBERTY of though, expression, belief, faith and worship is permittedas long as it is in line with MNC & World Bank thought to make world asingle religion, belief in single god and faith in them as singleeconomic power.

EQUALITY of status and opportunity is not applicable to local citizens.

AND TO PROMOTE AMONG THEM ALL INDIVIDUALITY, HATRED FOROTHER CASTE AND SURRENDER OF THE NATION TO THE LONEECONOMIC POWER ON EARTH.

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

FDI in Retail Trade

Fringe Benefit Tax

New Naka Complex

Cash Transaction Tax

&

Quarterly ‘C’ Form

Retail Traders

Telecom

Aviation

Banking

Insurance

Steel

Information

Technology

Infrastructure

Pharma

Mining

Professional

Education

Presented By Mr B C Bhartia,Nagpur.

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.

HISTORIC CONTRIBUTION BY TRADERS :

During Pre-independence days the traders have helped

the leaders in all forms like man power and money.

In all social activities & establishment of

schools, colleges, hospitals mandir, masjid etc. traders havecontributed.

Round the year 24 hours a day, traders have made all the

goods required by customer available to them

During the days of acute shortages, the traders have

some how managed to arrange goods for its customers.

Relationship of Indian traders and customers is much

more than mere business

Indian traders have always seen customer satisfaction

above personal profit.

SUPPORT AND HELP

TO GOVERNMENT

Traders are self employed and give employment to entirefamily and others.

Traders give employment to that neglected section of societywho do not get employment any where.

Traders take care of entire family of his employees.

All direct and indirect taxes levied by Central, State and localgovt. are deposited by trader in Govt. treasury without anycharges or commission from Govt.

During famine, floods, earthquakes tsunami and other naturalcalamities, the traders have always come out openly toextend full help to Govt.

TRADERS BEING IGNORED

BY GOVEREMENT

In Order to gain political mileage, traders have been termedby objectionable words.

After independence one after another anti trade, anti traderlaws have been made.

Traders have been made slaves under Inspector Raj.

Time & again new legislatures are being imported. SmallTraders have been put under heavy burden of bookkeeping, taxation and compliances under various laws.

In the name of development and road widening the shopsare being demolished only to give passage to hawkers andfootpath shopkeepers to establish their business.

Local Govt. failed to build new markets. old traditional marketsin different localities are being removed to make way for Bigstores to get customers.

CONTRIBUTION OF TRADERS

IN ECONOMY

In comparison to world, India has largest number of retailtraders.

In our country there are about 1,25,00,000 retail out lets.

Retail trade contributes about 10% - 11% of our country‟sGDP.

Total turnover of retail sector is about Rs. 8,75,000/- crores.

After agriculture, Retail trade provides employment tomaximum number of persons.

1.25 crore shops are providing employment to about 4 crorepeople.

In a study conducted by Reserve Bank of India, India RetailTraders charge less margin.

FOREIGNERS ARE MORE

DEARER THAN INDIANS

Indian traders, Businessman and Industrialists have established theirleadership across the world.

India is emerging as a big economic power.

Our country is progressing in all economic fields.

We have lagged behind in infrastructure, irrigation power etc. i.e.such sectors which were under control / monopoly of Govt. Wecould not grow to full potential in such sectors.

These infrastructure sectors require huge investment with largergestation period. Hence special emphasis has to be given to thesesection.

It is unfortunate that instead of focusing development of such coreareas the govt. want to hand over our established retail trade toforeigners.

It is surprising that suddenly govt. feels that our traders areincompetent to serve the people or handle retail shops OR in disguiseof Foreign Direct Investment our retail trade is being sold toforeigners.

WHAT WAS THE CRITERIA

FOR FDI

Some time in 1991-92, the then Finance Minister and

present Prime Minister Dr. Manmohan Singhji referred to

certain criteria for allowing Foreign Direct Investment.These were :

1. Establishment of basic industries requiring huge capital

and advanced sophisticated technology.

2. Infrastructure projects like electricity generation road

building etc.

3. Projects which would generate employment

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.

WHAT DO

FOREIGN / MULTINATIONAL

COMPANIES DO In 60s Big foreign houses entered in retail trade in other parts of

world.

This is against our culture of “One family One shop”.

These big companies, in order to crush competitors sell goodscheap. Later on effective prices of goods are increased.

These companies buy material from International market.Hence local producers are put to loss

These companies buy in bulk quantities directly frommanufacturers. The intermediaries loose business.

After conquering the markets of Europe and America, thesecompanies have now entered Asian markets.

After establishing their footings in Thailand, Indonesia, China,Japan, Philippines, etc in Asia, these companies are nowtargeting India.

EMPLOYMENT GENERATION

UNDER EXISTING SYSTEM

FARM LABOURS

HAMALS

DALALS

BROKERS

TRANSPORTERS

TEA SHOP OWNERS

HOTELS

DHABAS

SHOP KEEPERS

ALL WORKS IN FARM BY MACHINE UNDER CORPORATE FARMING

AUTOMATIC TRANSFER AND PACKING BY MACHINES.

SALE TO CUSTOMERS THROUGH CHAIN OF DEPARTMENTAL STORES.

LARGE NUMBER OF SELF EMPLOYED TO BECOME UNEMPLOYED.

AFTER M.N.C. TAKE OVER

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.

WHAT WILL HAPPEN TO

LOCAL RETAIL TRADE

No of Retail outlets Between 1981-99 in UnitedKingdom came down from 56862 to 25800.

Between 1970-80 in Europe about 4 lakhs Retailshops were closed.

Competition shall be limited to Big Retail Houses

In the year 2000 Five Big Fast food companiescaptured following percent market share :

Country % ShareNorway 99

Swezerland 88

Sweden 94UK 64

Portugal 57

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.

WHAT HAPPENED IN CHINA

There is a race to capture more & more space forretail trade.

There is allegation of flouting the norms on thesestores.

There is anger against these companies amongstgeneral public.

Media is also reporting how traditional shops havebeen thrown out.

The suppliers and manufactures are also facingproblem. These are closing down.

WHAT HAPPENED IN OTHER

ASIAN COUNTRIES

Other countries are also unhappy. Many countries havestarted taking precautions.

Indonesia and Malaysia have established zones within whichthese foreigners can do trade.

In Japan Big companies have to discuss with small traders.There is Zoning system also. Hence these companies have toestablish their shops outside city limits.

There is wide discontent amongst shopkeepers & people inthe countries to which these store belong.

The city counselor of California & Chicago have refused toallow opening of new shops to WALMART.

These shops are required to take permission in countries likeFrance, Germany and America.

NOW ITS TURN OF INDIA

The tough stand taken till recently by Central Govt., ForeignRetail Traders could not enter India.

It is unfortunate that Central Cabinet has given approval toFDI in Retail Trade.

Shift of Major retail trade to these big companies will rendersmall traders & their employees unemployed.

Many companies with the help of contract farming will sellgoods produced in farms directly from their chain of stores.

After establishing control over purchases & sale thesecompanies will start dictating.

These companies will keep only graduates and above in theiremployment. There will be no scope for employment to undergraduate and others.

In the event of non receipt of payment of supplies, it becomesimpossible to reach owners.

CONTRACT FARMING

COLLECTION OF

AGRICALTURE PRODUCTSTO OWN FACTORY

TO OWN DEPT. STORE

TO CUSTOMER

REQUEST STOP FDI IN

RETAIL TRADE

If Domestic Retail Trade is allowed by Big MNC‟s etc., therewill be Large Scale Unemployment.

A new class of unemployed called “Unemployed Traders” willjoin the existing force of unemployed persons.

These companies will sell internationally procured products.Domestic Industry will suffer.

Everybody knows how Big Fish eats away small fishes.

Keeping the experience of other countries in mind, Govt.should not take any such decision for which the wholecountry and coming generation will have to suffer.

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?

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.

INDIA : MY COUNTRY

DON‟T SEE INDIA AS POPULATION OF ONE HUNDRED CRORE

MOUTHS TO FEED.

SEE IT AS A MARKET OF ONE HUNDRED CRORE CONSUMERS WITH

TWO HUNDRED CRORE EYES TO WATCH YOUR PRODUCTS AND

TWO HUINDRED CRORES HANDS TO BUY YOUR PRODUCTS.

WORLDS LARGEST EMERGING RETAIL MARKET : WHO WILLCONQUOR IT : WE OR THEY?

DO NOT MAKE MY GOVEREMENT AS,

GOVEREMENT BY MNC,

GOVEREMENT OF MNC AND

GOVEREMENT FOR MNC‟S