Current Affairs

When analyzing any situation one should always try to notice

“What one cannot see, rather than what can be seen”

Attending the FM’s speech on the discussion regarding inflationary trends in India’s economy, which was expected to be the juiciest bite in this parliamentary season. I must admit I was a little disappointed by the opposition’s paltry crack at bringing the house down. It wasn’t Pranabda’s explanation on international economic pressures which lead to rise in domestic price rise/ or the effects of US subprime lending crisis which culminated in “thus the reason for domestic inflation…” After moving a united adjournment motion on price rise issue, the uproar during explanation was pitiful.

Another policy decision coming out late last night was the status on FDI in multi-branding retail sector. Bharti one of India’s premium business houses and a leading teleco struggled for over 18 months to launch their pioneer outlet in a JV with international retail giant Wal-Mart. Now they plan to extend the total no. to over 20 in a year’s time alone, before close competitors French retailer Carrefour and British firm Tesco finalize their entry plans.
India allows 100% foreign investment in wholesale and 51% in single-brand retailing, but none in multi-brand retail. Last month, the Department of Industrial Promotion and Policy sought comments from various stakeholders on different aspects of the subject through a discussion paper posted on its website. It’s not just the retail attraction though. Cash-and-carry is a big business in itself. About 30% of the country's total production of fruits and vegetables is wasted every year because of inadequate cold storage and transport facilities. Reckons K Rajagopalan, chief executive officer, Retailers Association of India, "By bringing in specialized experts into the supply chain, wastage can be reduced by 15%. Moreover, since there will be less people in the chain, economies of scale for a modern retailer will increase, giving a further boost to operating margins." The wastage currently estimated at Rs. 63,000 Crs could be brought down to half in a few years through infrastructure & supply chain management development.
Experts believe though generation ‘Y’ is the target consumer for these retail giants depending on ‘bulk buy- bulk sale’ & consumer’s plastic money buying power, the local baniya days aren’t over yet for some years atleast.

I would still prefer going to the baniya shop down the street to buy fresh loaf of bread…