Walmart Anxious Over States’ Veto Power On FDI

Walmart as well as US government seem concerned over States’ veto power the states have over the Foreign Direct Investment. They have conveyed their concerns, to the union government of India.
Walmart remain cautious to enter Indian Market as the states are given Veto power.

Walmart remain cautious to enter Indian Market as the states are given Veto Power.

Wal-Mart Stores, Inc.; generally branded as Walmart, an American multinational retail corporation, as well as the US government has revealed their concern over the veto power conferred to the states by the Union Government of India. Union Government’s decision to confer absolute power to the states; to decide on the matters related to the foreign retailers’ entry into their states, is seen as a barricade for the foreign investors.

Being concerned over the veto power of the States, many of the foreign retailers like Walmart, still not interested in the Indian Market. They, the world’s largest supermarket chain, still remain reluctant to enter the Indian Market. Continue reading

Real Estate Sector To Be Boosted By Government Policies

Real estate experts feel that the year 2013 will be a good year for real estate sector. They all point out that the new policies implemented will be in  favor of real estate sector.
real estate will reach new heights with govt policies

Real estate sector will be able to reach new heights only if the newly announced policies are properly implemented.

With the newly implemented government policies, real estate sector is on the verge to thrive in the current year. If the 2012- end was noted for the initiation of many policies in favor of real estate sector, then the new year is expected for  implementation of these policies.

Nahar Group’s Chairman and MD Sukhraj Nahar said that the real estate is undergoing through a transformation. He opined that the real estate has become more transparent in 2012 due to the fact that each participant has contributed to bring it out. Continue reading

FDI in Retail Policy Seeks Parliament Houses’ Approval

UPA government is ready to present its new FDI in retail policy in Lok Sabha for its approval. However the government seems worried over gaining approval from the Rajya Sabha.

UPA government is confident of receiving approval for its new FDI in retail policy from the lower house. But the approval of the upper house is a concern for the Congress led UPA government.

The policy of allowing more FDI- Foreign Direct Investment– in retail is said to boost the real estate sector. However the government’s decision aroused mixed opinion across the country. BSP in West Bengal and AIADMK in Tamil Nadu opposed the FDI in retail policy highly. Continue reading

Union Govt Decision to Allow More Retail FDI attracts Mixed Reaction

FDI In Retail

India welcomes more retail FDI

The central government’s decision to allow 51 % of retail FDI was received with a mixed feeling. Some opined that this will create unemployment. Yet this decision was welcomed by a group of real estate developers in Odisha. Continue reading

Housing and Real Estate: Telecom negatives present challenges

While recognising the importance of the services sector (it accounts for 59 per cent of gross domestic product), the Economic Survey has raised concern over several components in it. Three months after the government rolled back its decision to allow 51 per cent foreign direct investment (FDI) in multi-brand retail, the survey referred to it as a major challenge before the sector.

FDI in retail could begin in a phased manner in the metros, the survey suggested, a day ahead of the Budget. Though it did not specify the details, experts said the government document hinted at a low FDI cap, perhaps one of 26 per cent. It has also talked of “incentivising” mom-and-pop stores (kirana shops) “to modernise and compete effectively with retail shops, foreign or domestic”.

While agricultural marketing could improve immensely with the growth in modern retail trade, the revenue to the government could also increase. Currently, the retail sector is largely unorganised and has low tax compliance, it argued.

Reacting to the portion in the survey relating to FDI in retail, Purnendu Kumar, senior vice-president (retail), Technopak, said, “This is something similar to what was articulated earlier — issues like better integration with farmers leading to better pricing for them and quality storage leading to lower wastages. It needs to be seen how the government would be able to execute this, considering the Congress party does not account for the majority on its own.” Incentivising small traders was a welcome step, but the details were not available, Kumar said.

Karandeep Singh, chief financial officer, Flipkart, a leading online retail chain, said, “While the future is promising, it will be realised only if the government acts on some of the guidelines provided in the survey.” According to Singh, opening up FDI in retail and continuing to make the infrastructure sector attractive for investments were critical to creating more jobs and having a multiplier impact on the economy.