Retailers must die!
Palash Biswas
Minimum governance has proved to be the best ever marketing strategy for foreign companies doing business,taking over Indian companies as well as Indian market.Amazen to Alibaba,the E tailing has already killed
Retailing in India.
Let there be FDI in multi brand retail sooner or later,believe me the numbers of suicide cases in business would cross the number in dead Indian agrarian sector.
Yes,Retailers in India must die,no matter they opted for a business friendly government and actively did everything to create the unprecedented lotus tsunami hoping boom boom business.
Yes,it is boom boom business.
yes,it is free flow of black money redefined as FDI and PPP model Gujarati.
Yes,it is bull run economy all round.
But the retailer`s love is lost as they are not supposed to make money in Indian retail market as they have been even in UPA regime.
Why just read carefully all about the economics of Indian prime minister in United States of America.
Why just read carefully all about the business talks with American CEOs.
The great Indian retail market is booked for omnipotent omnipresent American companies who sell our culture,our gods,our religion and invoke fundamentalism so fanatic,the blind Hindutva nationalism better than any damned politician without causing a culture shock.
I am not breaking the news.
I am just drawing your kind attention to already broken news.
For example,Economic times reported:
The current govt hasn't changed 51% FDI in multi-brand retail, despite its stated opposition
Bharatiya Janata Party vice president and general secretary Ram Madhav said in New York that more discussion is needed on foreign direct investment (FDI) in retail with a view to introducing safeguards to protect small neighbourhood stores, suggesting that the Narendra Modi government may be prepared to consider a review of its opposition to overseas companies entering multi-brand retail.
Economist Jagdish Bhagwati said he had discussed the issue of allowing FDI in retail with Modi in early 2013, when he was the Gujarat chief minister, and added that he expects the government to allow it in about a year's time. The US government is keen that India opens up the sector to companies such as Wal-Mart Stores Inc.
Haath kangan ko aarsi ky,padhe likhe ko Farsi kya.Just read the reports in detail and for your blue eyes only,I am just attaching some of them most latest.
PM Modi to Pitch Brand India to Top CEOs TodayNDTV - 6 minutes ago Prime Minister Narendra Modi will meet CEOs of top US companies over breakfast on Monday to hard sell Indiaas the best investment destination in Asia. India needs huge investment to drive its manufacturing sector, which is the biggest job creator. The new ... Modi to hold breakfast meet with top US CEOs todayChandigarh Tribune - 4 hours ago New Delhi: When Prime Minister Narendra Modi sits down to breakfast with the CEOs of top US companies Monday, he will be speaking to them with the knowledge and authority of a business honcho who knows what he wants and can possibly marketIndia ... |
Modi govt may go for FPI in multi-brand retail
Hindustan Times - Sep 10, 2014
The National Democratic Alliance (NDA), which is opposed to foreign direct investment (FDI) in supermarkets and department stores, or so-called multi-brand retail, is considering allowing foreign portfolio investors to own even a majority stake in retail ...
Big Retail is no monster: By blocking FDI, BJP proves it's a party of traders
Firstpost - Sep 9, 2014
In a press conference to mark the 100 days of the Narendra Modi led National Democratic Alliance (NDA) government, commerce minister Nirmala Sitharaman said, "We are clear that FDI will not be allowed in multi-brand retail trade....There is no ambiguity.
Seeking govt nod to hike FII limit to 49%: Future Group
Moneycontrol.com - Sep 10, 2014
The Modi government may be considering allowing foreign portfolio investors to own majority stake in retail companies. Reports suggest that Department of Industrial Policy and Promotion (DIPP) has proposed foreign direct investment (FDI) ceiling of 51 ...
Textile Ministry favours FDI in multi-brand retail
FashionUnited India - Sep 9, 2014
Contrary to the views of Narendra Modi-led government, the Ministry of Textiles is in favour of FDI in multi brand retail. The ministry in its strategy report has recommended FDI in single and multi-brand retail under automatic route but restricted it only to Indian ...
Can Modi revive the India-US relationship?Aljazeera.com - 3 hours ago Modi has bonded with Japanese Prime Minister Shinzo Abe, getting a promise of $35bn in investments in Indian infrastructure, and has hosted Australian Prime Minister Tony Abbott, who finalised an agreement on the sale of uranium. .... ready-to-be-disappointed camp points to the many unresolved issues on the bilateral agenda, among them: India's nuclear liability law, which has prevented US investment in India's nuclear industry, and its decision to block direct foreign investment in the multi-brand retail trade. The US can make a lot of money working with India's ModiReuters Blogs (blog) - 1 hour ago Great powers sneak up on you. While Washington has been preoccupied with a burning Middle East, Russia behaving badly and, to a lesser extent, the rise of China, U.S. relations with India have slipped down the diplomatic priority list. In coming decades ... US Companies Keen On Engaging With The New Indian GovtBusinessinsider India - 41 minutes ago According to an assessment done by ASSOCHAM's US office, the policy makers, corporate honchos of the top Fortune 500 companies in the US believe that Prime Minister Narendra Modi can turn India into 'a modern nation with democratic values'. ... "Yes, there are issues like bilateral investment treaty, intellectual property rights, wanting India to open its retail sector for the foreign direct investment and India's tough position in the WTO talks on the issue of farmers' security vis-a-vis the trade facilitation, the American ... Why Modi's US visit is crucial for Obama administration?Oneindia - Sep 24, 2014 Hence, Obama administration would be making every possible effort to give an easy access to its retail, aviation, insurance and other related companies in Indian markets. US would be hoping that the Narendra Modiadministration resolved the deadlock over ... Modi invites diaspora to 'Make in India', help clean GangaIANS - 9 hours ago Amid cheers from the crowd, Modi said he had made arrangements for Indians abroad to interact with him directly. "I have a website MyGov. I request you all to look at MyGov. Please visit the website and see how you can get involved. "We aim to show our ... NDA govt may reconsider its stand on country's FDI policyFashionUnited India - 1 hour ago Also the commerce minister Nirmala Sitharaman has clarified Narendra Modi-led NDA government's stand on the FDI policy saying it would not allow foreign direct investment (FDI) in multi-brand retail, it has not yet notified a withdrawal of the previous ... In US, Modi has his work cut out: sort out issues to get a partnership goingIndian Express - Sep 25, 2014 Modi has promised to address concerns of American businesses over intellectual property rights, and may offer to reconsider his opposition to FDI in the retail sector. He will, in turn, expect some concessions on a visa regime that Indian businesses in the US ... For Obama Meeting, Where's Modi's Strategic Agenda?NDTV - Sep 26, 2014 The U.S. complains about India's nuclear liability law, its patent law, and its policies on food subsidies and foreign investment in key sectors like retail and defence. Above all, Washington is consumed with the feeling that India has not been grateful enough for ... On his maiden trip, Modi will focus on deepening India's energy ties with the US.Business Today - Sep 26, 2014 The bilateral civil nuclear deal made no headway and India could not open the market for US players in multi-brand retail. US diplomats have been working extra hard to mend fences with Modi as Washington had denied him a visa since 2005. Ever since ... Sikh leaders share ideas with Modi on PunjabIANS - 3 hours ago But he added that there were also issues specific to them when they wanted to go back to India and the leaders gave Modi a petition about the problems. Some issues related to those who had left India in the wake of 1984 riots. Others related to those who did ... Mr. Modi's Dynamic Diplomatic DebutBrookings Institution (blog) - Sep 26, 2014 Mr. Modi seemed intentionally to be setting the stage for his two most important summits – welcoming China's Xi Jinping to India last week, and then travelling to the United States this week to attend the UN General Assembly meetings and then meet with President Obama. So far, Mr. Modi's .... Upper house approval is required on many of the issues for which the U.S. is seeking action (i.e. defense cooperation, WTO trade facilitation, nuclear liability for manufacturers, multi-brand retail, etc.) At the end of the day, ... Modi announces lifelong visas for Indian diasporaIANS - 13 hours ago he asked as the crowd cheered his announcement with chants of "Modi, Modi" at the huge Madison Square Garden community reception for him. "There is even more to come," he said smilingly as he announced that People of Indian Origin (PIOs) in staying in ... As US protects Modi against summons, NRIs with food dabbas gather to greet himScroll.in - Sep 26, 2014 At the same time, Modi's detractors too had a plan. Using the somewhat easy judicial path in the United States to serve summons on anyone so long you have the money to pay court fees, a Sikh activist who has made it his mission to serve summons on ... Modi for environment of trust but no incentivesBusiness Standard - Sep 25, 2014 Prime Minister Narendra Modi on Thursday made a clarion call to investors to choose India as a manufacturing destination by launching the ambitious 'Make in India' programme here. Though he offered no incentives, the prime minister promised to create a ... Have not taken 15 minute vacation so far: ModiIANS - 14 hours ago ... of "Modi, Modi", the prime minister, in his address to the Indian diaspora at Madison Square Garden here, said the people of India and the diaspora have conveyed the strength of democracy through the April-May elections, which saw the Modi-led Bharatiya ... Modi's US visit and its biz connotationsZee News - Sep 23, 2014 The business lobby also expects Narendra Modi to revisit its stand on the policy of 51 percent FDI in multi-brandretail that was passed by the outgoing UPA-2 government. Though, FDI in fields like education and online multi-brand retail remains fully closed, ... India's Modi Aims to Rekindle US InvestmentWall Street Journal - Sep 25, 2014 NEW DELHI—When Indian Prime Minister Narendra Modi arrives for his first official U.S. visit on Friday, a top goal will be resuscitating investment interest in his country's sputtering economy. Not too long ago, investors and executives had hoped the South Asian ..... After years of lobbying for India to open up its retail industry to more foreign investment, retail giant Wal-Mart has put its big India roll out plans on hold until restrictions on foreign firms are eased. It currently operates only through wholesale outlets in India. US business policymakers keen to engage with India Assochamindiatvnews.com - Sep 27, 2014 Prime Minister Narendra Modi is currently on his maiden visit to the US during which he will address the UN General Assembly, hold talks with President Barack Obama and meet top American corporate honchos besides a series of other engagements. "Yes, there are issues like bilateral investment treaty, intellectual property rights, wanting India to open its retail sector for the foreign direct investment and it's tough position in the WTO talks on the issue of farmers' security vis-a-vis the trade facilitation, yet American ... What kind of reformer will Narendra Modi be?Livemint - Sep 22, 2014 They aver that Modi's strength is primarily in easing hassles for big business, but he is not ideologically oriented towards wider pro-market reforms that enable substantial creative destruction of current businesses to improve overall efficiency. ... these visits have grabbed headlines, the government has only cautiously moved on lifting foreign direct investment (FDI) caps in sectors such as defence and insurance and has roundly criticized the previous government's decision to allow 51% FDI in multi-brand retail.Modi ... Narendra Modi meets America: 6 things to look out forDaily News & Analysis - Sep 25, 2014 On the flipside, Modi in his short tenure has shown some traits of protectionism, especially to counter current account deficit. It is looking to cut down on import of inessential goods. The Modi government has also refused to reverse its stand on FDI in retail. America Inc. wants to engage with IndiaOrissadiary.com - Sep 27, 2014 New Delhi: US policy-makers, think tanks, Congressional leaders across the bi-partisan line and most significantly CEOs of the top Fortune 500 companies believe that Prime Minister Mr Narendra Modi and his NDA Government can deliver and transform ... "Yes, there are issues like bilateral investment treaty, intellectual property rights, wanting India to open its retail sector for the foreign direct investment and India's tough position in the WTO talks on the issue of farmers' security vis-├а-vis the trade facilitation, the ... Modi meets New Jersey governorIANS - Sep 27, 2014 Christie and Modi shared their experiences of using social media as a tool of governance. Christie told Modi: "I watch your usage of social media closely." After the meeting with Modi, Christie took to Twitter to thank Prime Minister Modi and posted a picture of ... Corporates upbeat on Modi's US visit, eye tangible outcomesMoneycontrol.com - Sep 22, 2014 India Inc is optimistic about Prime Minister Narendra Modi's upcoming US visit, with 77 percent of corporates eyeing tangible outcomes from meetings with President Barack Obama and a boost to bilateral trade from current level of USD 150 billion, says an ... confront the India-US economic engagement, be it divergent views in WTO, issues on visas for IT professionals, non-tariff barriers from the Indian side or national treatment demand by the US on solar equipment in India or opening of the retail and financial sector ... Modi visit to US to take India-America ties to new scale; India IncBusiness Standard - Sep 22, 2014 India Inc is very optimistic about the ensuing visit of Prime Minister Narendra Modi with an impressive 77 per cent of corporate heads and senior management expecting tangible results from the much-awaited PM's meetings with President Barack Obama taking ... be it divergent views in WTO, issues on visas for IT professionals, non-tariff barriers from the Indian side or national treatment demand by the US on solar equipment in India or opening of the retail and financial sector ASSOCHAM Secretary General Mr D S ... Narendra Modi-Barack Obama meet good for businessDaily News & Analysis - Sep 22, 2014 This fortnight promises to be headline worthy given the new PM's birthday falls on the calendar, we have the Chinese Premier Xi Jinping coming over and Modi will be travelling to the United States. He has been appraised on many counts, given that he just wrapped up a hundred days but the centerpiece ... Foreign direct investment in retail – with WalMart's history here so far – appears to be somewhat of a sticky issue. It may just a pass as the two leaders no doubt will spend more time on ties in sectors like nuclear, ... Corporates upbeat on Narendra Modi's US visit, expect tangible outcomesLivemint - Sep 21, 2014 Prime Minister Narendra Modi will be on a five-day visit, beginning 26 September, to the US during which he will address UNGA in New York and then travel to Washington where he would hold bilateral talks with US President Barack Obama. ... in WTO (World Trade Organization), issues on visas for IT professionals, non-tariff barriers from the Indian side or national treatment demand by the US on solar equipment in India or opening of the retail and financial sector," Assocham secretary general D.S. Rawat said. Modi's 'first develop India' slogan may actually shoo foreign investors awayFirstpost - Sep 25, 2014 Both Joshi's and Modi's slogans have a nice ring to them as far as the Swadeshi argument is concerned but cannot be music to the ears of foreign companies that are being courted by the Indian government. First develop India could be construed as constricting foreign investment only ... This can be done by mandating that foreign retail chains will find foreign exchange for their imports, say from China and other countries, only from exports. This is not xenophobia but advancing of enlightened self-interest. There is no ... Corporates upbeat on Modi's US visit, expect tangible outcomesDeccan Chronicle - Sep 21, 2014 New Delhi: India Inc is optimistic about Prime Minister Narendra Modi's upcoming US visit, with 77 per cent of corporates eyeing tangible outcomes from meetings with President Barack Obama and a boost to bilateral trade from current level of USD 150 billion, ... confront the India-US economic engagement, be it divergent views in WTO, issues on visas for IT professionals, non-tariff barriers from the Indian side or national treatment demand by the US on solar equipment in India or opening of the retailand financial ... As Modi meets Sikhs, they share their hopes, expectationsIANS - Sep 28, 2014 He said he wanted to talk to Modi about the continuing trauma of the 1984 anti-Sikh riots and ask him to take bold steps to heal it. Though it is almost 30 years since the riots in which about 8,000 Sikhs were killed, the perpetrators are still free, and "justice has ... 'Modi as head of government is ring-fenced against summons'IANS - Sep 26, 2014 New York, Sep 27 (IANS) Prime Minister Narendra Modi is "ring-fenced" as a sovereign representative of India and cannot be served summons in a case filed against him in a federal court here by an organisation claiming to be representing alleged 2002 riots victims, an Indian government official said here Friday. .... A corporate retailface of IANS Group, www.ianslive.in presents to you a vivid world of news, views, features, gossips, entertainment, business, sports, international, videos/photos and what not. |
Sep 29 2014 : The Economic Times (Kolkata)
Hello America - NDA May Rethink FDI Retail Policy
Vikas Dhoot |
New York: |
The current govt hasn't changed 51% FDI in multi-brand retail, despite its stated opposition
Bharatiya Janata Party vice president and general secretary Ram Madhav said in New York that more discussion is needed on foreign direct investment (FDI) in retail with a view to introducing safeguards to protect small neighbourhood stores, suggesting that the Narendra Modi government may be prepared to consider a review of its opposition to overseas companies entering multi-brand retail.
Economist Jagdish Bhagwati said he had discussed the issue of allowing FDI in retail with Modi in early 2013, when he was the Gujarat chief minister, and added that he expects the government to allow it in about a year's time. The US government is keen that India opens up the sector to companies such as Wal-Mart Stores Inc.
Under the previous Manmohan Singh government, India permitted 100% FDI in single-brand retail — stores that sell only their own brand of products — in 2012, scrapping the earlier ceiling of 51%. At the same time, 51% FDI was allowed in multi-brand retail, a policy that the BJPled Modi government hasn't reversed after coming to power though its election manifesto had promised such FDI wouldn't be allowed.
"Our opposition to FDI in retail should not be seen as a blanket opposition to FDI.
We are open to inviting foreign capital into India. But no country allows foreign investment without regulation," Madhav said at an event organised by the Confederation of Indian Industry.
"FDI in retail is one area where further discussion is needed, further safeguard is needed. The BJP manifesto says that. It is to safeguard the interests of India's small businessmen and neighbourhood shopkeepers," the BJP official said.
Speaking later at the same forum, Columbia University professor Bhagwati said that Modi had made a lot of moves to fix governance in his first four months in power, but he can't be expected to open up retail to foreigners in a hurry.
"When I gave a lecture a year and a half ago in Ahmedabad, everybody told me don't tell the CM (Modi) to open up the retail sector. I did actually. We had a thoroughly good exchange of views and he's quite capable of understanding the issue," he said. "So I would predict that in about a year's time, he would be doing it (opening up retail FDI), but not immediately. Already, FDI caps in defence and insurance have been raised," Bhagwati said, stressing that the BJP has been committed to opening up retail for a long time.
Bhagwati said such changes would take time to implement.
"Somethings… like retail FDI, you can't expect him to do right away," Bhagwati said. "Only a foolish person would go ahead and do something that will land him or her in political trouble. In politics, what I look for in a PM is someone who is making the changes and moving ahead. But in democratic politics, you have to watch yourself. You can't expect rapid speed that can be chaotic and you can be bundled out of power." A signal on this front could significantly boost global investor sentiment on India after global retailers such as Carrefour and Walmart recently dropped plans to open supermarkets in the country. Walmart, however, is present in India's cash-and-carry or wholesale segment, where 100% FDI is allowed. The US company ended its joint venture partnership with Bharti Enterprises in multi-brand retail last year. India's retail industry is worth about $500 billion and is expected to reach $1.3 trillion by 2020, according to consultancy firm PricewaterhouseCoopers.
ep 29 2014 : The Economic Times (Kolkata)
ET Q&A - Bezos: Amazon Open to Acquisitions in India
Pankaj Mishra & Karthik Subbaraman |
Bangalore: |
India has surpassed the highest expectations of Amazon, the company's founder and CEO Jeff Bezos said, promising to keep the money tap open for a business that he announced has sold goods worth more than $1 billion (.`6,000 crore) in just over a year of operations.
"We had very high expectations and this team here has already blown past all of our highest expectations," said Bezos, 50, who is making his second visit to India and his first after Amazon launched its retail business in June 2013.
"The results are very good. Now that's why we are doubling our investments," he told ET in an interview. In July , Bezos committed to invest $2 billion in India, just a day after India's biggest online retailer Flipkart announced $1 billion in funding, setting the stage for a battle for top honours in a market that retail advisory Technopak expects to be worth $32 billion `1.9 lakh crore) by 2020.(.
With an estimated net worth of $30 billion, Bezos is one of the world's richest men and India is crucial to his plans for Amazon, given its size, market potential and especially since it has failed to make much headway in China.
His company launched relatively late in this country, Amazon's share price has fallen by around 20% on the Nasdaq this year, and China's Alibaba is flush with cash after its IPO. But Bezos is unfazed."Judging just based on results, I would say we have come exactly at the right time," Bezos said in response to a question about whether he has left India until too late, and let out a full-throated guffaw, one of several that punctuated the 40-minute interview.
Amazon's main rivals in India are Bangalore-based Flipkart and Snapdeal, the Delhi-based company that counts eBay, Azim Premji and Ratan Tata as investors. Together, they have sold goods worth more than $4 billion, with Flipkart alone estimated to have crossed $2 billion. Alibaba, too, is keen on India, and the Chinese company has the money, experience and ambition to succeed here.
Sep 29 2014 : The Economic Times (Kolkata)
Retailers Threaten to Boycott New iPhones
Gulveen Aulakh |
New Delhi: |
Some mobile phone retailers have threatened to boycott Apple's muchawaited iPhone 6 and 6 Plus models after their expected preDiwali launch because they are miffed that the iPhone 5S is being offered at heavily discounted prices on popular e-commerce sites Amazon, Flipkart and Snapdeal.
According to sellers that ET spoke to, some of the 1.5 lakh retailers claimed they have returned their iPhone 5S models, saying they can't compete with the discounts, which have lowered the price of the device to less than their cost.
"All over India, there is a huge uproar and heartburn among retailers against online sellers since their business and reputation is being lost," said Subhash Chandra, managing director of retail store chain Sangeetha Mobiles, adding that offline sellers were adversely affected as customers were increasingly going online.
A top executive at another retailer told ET that if things stay as they are, he would neither display nor sell the Apple iPhone 6 or 6 Plus.
Apple products Apple products are distributed in India by Red ington and In gram Micro. ET could not inde pendently con firm whether re tailers had returned iPhone 5S models.
Apple didn't re spond to e mailed queries ment. An execu seeking comment. An executive close to dealings at Apple India said the company hasn't authorised marketplaces such as Amazon, Flipkart and Snapdeal to sell iPhones in India. Infibeam is the sole authorised online seller for iPhones while Flipkart is authorised to sell iPads and iPods.
The emergence of online retailing and its pricing benefits and the rift created with traditional sales channels exists in other global markets as well, for instance, when Amazon started operating in the US.
In India, where the online retail growth story has only just begun, about 12-14% of mobile phone sales are being diverted from offline retailers on a monthly basis, according to research firm Convergence Catalyst.
"There is unrest among retailers, as even brands are supporting online," said Satish Babu, founder of retail store chain UniverCell Mobiles. Titu Tanwani, one of the largest distributors of mobile phones in Jaipur, told ET that many retailers had decided to stop selling iPhones as they were facing massive flak from consumers who are able to buy the devices online at much lower prices. "The price difference is as high as . 11,000 on some models. Apple is liqui` dating stocks of the older models," he said, alleging that the company was doing so in anticipation of the iPhone 6 and iPhone 6 Plus launch expected next month. He said state trade associations, such as that of Rajasthan, were protesting against the brands.
E-commerce sites show that the 16 GB iPhone 5S, the highest-selling model for the company in India this year, on offer at between ` . 34,000 and . 36,000, as much as 36% less than the ` . 53,500. The 16 original retail price of ` GB iPhone 5S is available on Amazon . 33,999.for ` Tanwani added that retailers were also rallying against local handset makers. The retailers are threatening to boycott Micromax, Spice and Karbonn, which have launched devices backed by Google's Android One platform exclusively online.
Google has partnered with Micromax, Karbonn and Spice to sell Android One smartphones priced between ` . 6,499, exclusively on . 6,299 and ` the three e-commerce sites. Spice didn't respond to ET's queries at the time of writing.
"To ensure convenient access to our devices, our distribution strategy is a judicious mix of both traditional and new-age sales channels. Retailers continue to be the lynchpin of our distri bution nexus and we would continue to expand our retail network in the future," Karbonn said in a statement.
A Micromax company spokesperson said all distribution channels will coexist but consumers should have the choice to buy from any platform they choose. "India is a huge market and, hence, different channels are developing to serve the various consumer segments. As part of our tactical promotions, we might choose a partner for a particular activity but our strategic intent is a balanced approach."
Sep 29 2014 : The Economic Times (Kolkata)
Cheer for Cos with Foreign Funds
Deepshikha Sikarwar |
New Delhi: |
The Narendra Modi government is thinking of allowing companies owned and controlled by overseas investors to invest freely in downstream units, a move that would be the administration's biggest foreign direct investment (FDI) reform if implemented.
Not only would this throw open non-strategic sectors completely to overseas money , it could solve the vexed issue of the foreign investment limit being breached in HDFC Bank.
Under the current rules, any investment by a foreign-owned or controlled company is considered overseas investment and faces the same restrictions as any other foreign investment.
"There are certain aspects in the FDI policy that constrain in flow of foreign capital... We are looking at how these could be eased," said a finance ministry of ficial, adding that one of the is sues under review relates to the downstream investment by for eign-owned and controlled enti ties.
Such a change in policy could help the country's second-largest private lender, HDFC Bank if housing finance -the business of parent HDFC -is treated as a non-strategic sector.
HDFC Bank has been attempt ing to raise the limit on foreign investment in its shares since De cember, when the Reserve Bank of India barred further stock purchases by portfolio investors.
But it has been blocked at the Foreign Investment Promotion Board (FIPB) after government departments ruled that it had al ready reached the sectoral cap for overseas investment. HDFC's stake in the bank is being categor ised as overseas investment as the parent is more than 50% foreignheld.
"Non-strategic sectors should be kept out of such a rule... Why should they face unnecessary hurdles?" said the official cited above, adding that only strategic sectors and investing companies should be governed by such a norm.
The government had tweaked the policy in 2009 through Press Notes 2 and 3 dealing with calculation of FDI.
Such press notes are the avenue through which the government lays out FDI policy.
As per the 2009 policy, foreign investment includes FDI, foreign institutional investment, shares owned by non-resident Indians, foreign currency convertible bonds and convertible preference shares, besides American and global depository receipts (ADRs, GDRs).
Sep 29 2014 : The Economic Times (Kolkata)
HELLO AMERICA - US Cos Eye Deals Worth $3-5 Billion with India
New York: |
Defence, technology and consumer goods cos see big potential
As Prime Minister Narendra Modi meets top gov ernment officials and business leaders in the US, about half-a dozen large American corpora tions are pitching for deals worth $3-5 billion in defence and aero space sectors, while many have expressed interest to partner in projects related to smart cities and Digital India. Broader con tours of these potential deals are likely to be discussed in Wash ington where Modi would reach on Monday evening as part of his five-day US visit ending Septem ber 30. Many companies are like ly to extend their support for pro jects such as clean India and other ventures, sources said. The Prime Minister held discussions with a group of top Indian-Americans, including business leaders, and they were invited to India to teach business and entrepreneurship.
Modi's visit also comes at a time when his government is looking to attract more foreign investment as part of efforts to bolster the country's economy.
To boost the manufacturing sector in the country, Indian government has recently launched the 'Make in India' campaign.
Modi has a power-packed schedule of business meetings during his visit and during his interactions with top American corporate executives, he would be rolling out his policy of "red carpet and not red tape" to invite them to come, invest and make in India.
Among others, the 'My Govt Digital Platform' initiative was launched in July with an aim to help citizens contribute in governance by giving their views on important issues.
The Prime Minister is set to hold discussions with more than 15 top American corporate honchos, including top executives of Google, Boeing and General Electric, here tomorrow.
Besides, Modi would be participating in a business meet, to be organised by the US-India Business Council (USIBC), expected to be attended by 300-400 businessmen in Washington on September 30.
The visit is expected to further boost IndoUS trade ties. The value of trade between the two countries stood at nearly USD 64 billion in 2013.
Sep 29 2014 : The Economic Times (Kolkata) EXCLUSIVE Q&A - We Just Ignore Our Competitors
Internet retailing pioneer Jeff Bezos, in India for his second visit, has done what a visiting dignitary does -pose in Indian attire and stand atop a truck. In between practised answers that sidestep queries on rivals, his trademark loud guffaws and signing copies of an unauthorised biography, Bezos speaks to ET about his India bet and how it has surpassed his wildest expectations. Edited excerpts: What brings you to India now? I'm here to celebrate our first year of Amazon India. This is, you know, an outsized early success. You know we had very high expectations and this team has here blown past all our highest expectations and they have to keep on resetting internally our higher set of expectations. The busi ness here is going extremely well. And so I wanted to come here and thank the team. In hindsight, do you feel that you were late in starting operations here? It's a very interesting question. Judging, just based on results, I would say we have come exactly at the right time (laughs). You are not alone in having this heady success. Your rivals too seem to have it too. In general, one of the things of ecommerce is that there is room for lot of winners. This is huge industry, and all over the world where we do business, there are a lot of winners. And India would be the same. What is your message for Sachin and Binny Bansal of Flipkart, both of whom are former Amazon India employees and now run your biggest rival? I have this long-standing practice about not talking about other companies. We have a somewhat unusual approach of mostly ignoring our competitors (laughs). Our an nual planning process does not even talk about competitors. There are some com panies where the whole planning process starts with who their top three competi tors are and they develop strategies to deal with them. You just mentioned how your India business has surpassed your expectations... Far surpassed. The results are very good. Now that's why we are doubling down on our investments. We like to plant seeds. And some of the seeds grow into big trees. And that's what's happening here in India.There are certain things that are very unique in India. There are so many small and medium businesses. It's unusual. It's such a huge opportunity.So these guys have developed some inventions for them that we may have to export back to the rest of the word. With things like Easy Ship-they are facilitating offline sellers, small physical stores. I am super excited! Is there a financial milestone that India business has crossed like a billion dol lars ? We set and surpassed a billion dollars. So we had to reset everything. We had to reset everything much higher. How much is the new goal? I don't know whether we going to talk about it. But internally we have new goals which are much bigger. You announced $2 billion of investment in India.Are you going to double that number anytime soon? I have this belief that when things are working you should keep funding them. There is so much we can do here (in India) in terms of infrastructure, in terms of investing in mobile. Mobile is especially important in India. There is so much you can do with transportation and logistics. So I am very, very excited about that.If there is an opportunity to invest more we will.We are not capital-constrained, we are ideas-constrained. In fact I find India and the people not just energetic but personally energising. So you don't have any major issues with marketplace model? Our marketplace model is working phenomenally well. Every country has its unique rules and our job is to adapt business systems to those rules. If those rules change in India, then we'll have to adapt to that. Then maybe we can also help small manufacturers adapt to it--like the Make in India kind of campaign. Will you speak to the government about changing those rules? In all the various countries we have lots of public policy decisions. I always tell my team that whatever the rules are -every country gets to decide whatever its rules will be -we are the ones who would have to adapt to the local rules. So are we going to see only organic kind of strategy in India? Will you look at acquisitions? All of our growth is organic. If you look at Amazon globally we acquire companies from time to time.But mostly we grow organically and that's true in India. But if there are opportunities to do acquisitions, we'll always consider. I like our organic growth as the base of it. You have been a disruptor. What could disrupt you? I don't spend a lot of time thinking about that but it's inevitable. I just hope I'm dead first (laughs).But we don't seek to be disruptive. We seek to do things in a better way to improve customer experience. And if you invent something new that the customer is going to like, then that ends up being disruptive to the old way. It's disruptive when customers change their habits. Disruption is a consequence of invention. What do you say to people who describe you as a bully.I know how to make our competitors happy. All we have to do is raise prices, slow deliveries, make a few delivery mistakes, decrease reliability, reduce selection and they'll be thrilled. But that's not our job. Our job is to work hard everything that we think matters to customers. The Amazon stock is down 20% since January.Are you under pressure from investors? If I were to pay attention to the short-term changes in the stock price, I think I will get no information, no useful information from that about how to lead the business. And I'll probably get misleading information. So, ownership is about having a long-term point of view. The short answer to your question is: No, I don't spend time thinking about short-term price movements. Unlike the past, today you have a spectacular debut by Alibaba, a rival that in the same industry and also making money, which is. Doesn't that put you under added pressure in some way? If so, I haven't felt it. (laughs). You have Amazon Web Services, the hardware business and then the core Amazon business. Do you ever see a scenario where you split them? I don't think so. I think they work together. They reinforce each other. Those businesses help each other. Some of them would even be very difficult to split apart because they're so intertwined. So I think what we are doing now makes a lot of sense. How do you approach failure? I think failure is part and parcel with inventing. If you want to be sure to not fail then, for goodness' sake never do anything new. Because anything new might fail. You know it's not an experiment if you know it's going to work. If you really do want to invent, failure has to be okay. Is India particularly important for you because of the China angle? I wouldn't contrast it in that way. You're asking me, `Is this business particularly important?' It's like asking me which of my children I love more. I love all my children. We've got a lot of very important businesses. This is certainly one of them. You made a lot of news a few months ago with a drone delivery plan. How far away from reality is it? The development team is making tremendous progress. The real issues are not technological. The real issues are regulatory. We have to work together with the regulators in each country, and figure out, over time, how to do it. I know we can make it safe, but we have to convince people it is safe. We have to get the right regulations to be able to do that. It will take time, but it will happen. You bought The Washington Post last year. What is the future of the print media? In the really long term, I don't know. In the short term, in a 10-year kind of timeframe, there seems to be a strong future for print. What you tend to see is that there's been a deceleration of print, but it seems to be levelling out again. I also think the vehicle is less important than the subject matter.Content is more important than the medium on which it is distributed. I care more about the news gathering process itself, and I see that the digital distribution medium presents huge opportunities because you can cost-effectively be a global news organisation. So, I'm excited about the digital part of the business, but you do see print stabilising. What keeps Jeff Bezos awake at night? First of all, the honest answer to that question is I sleep unbelievably well! I just happen to sleep well.I literally put my head on my pillow and I go off to sleep. My wife is so jealous. But the sense in which you mean the question, what I would say is that I really want the culture of Amazon, this customercentric culture, to not only continue, but to continue to grow and thrive. What I see so far is very good in that regard. I see all over that that culture is thriving. But that's the thing I would most worry about-if we ever lost our way, and stopped putting the customer first. I want us to start with the customer and work backwards. Interviewed by Santosh Menon, Karthik Subbaraman and Pankaj Mishra CV IN A SNAPSHOT BORN: January 12, 1964 in Albuquerque, New Mexico EDUCATION: BS, Princeton University MARRIED TO: MacKenzie Bezos, an American author CHILDREN: A daughter adopted from China, and three sons NET WORTH: About $32 billion COOL FACTS: His Favourite Book is Mr. Pine's Purple House, a children's book At age 3, Bezos disassembled his crib with a screwdriver. He wanted to sleep on a bed Amazon's early name was "Relentless.com", continues to redirects users to the Amazon home page The first item ever sold on Amazon.com was a science textbook Fluid Concepts & Creative Analogies: Computer Models of the Fundamental Mechanisms of Thought He was adopted by his stepfather, Miguel "Mike" Bezos, an engineer at Exxon THE INDIAN CONNECTION Bezos discussed the idea for Amazon way back in 1994 with an Indian-origin venture investor Keyur Patel and John Ingram of the Ingram Group In 2000, a bond analyst in Lehman, Ravi Suria, who hails from Chennai, questioned Amazon's business model. The stock crashed by 19% in a single day Kal Raman, a former TCS engineer, and later at WalMart, was hired by Bezos in 2004 to build data analytics systems. He worked for only two years at Amazon Amazon India head Amit Aggarwal was one of the `shadows' of Bezos during 2007-09 before being elevated to head the company's India business Tough Quotes by Bezos (He is known to be a tough boss and has now been called the next Steve Jobs) "Why are you wasting my life?" "I'm sorry, did I take my stupid pills today?" "This document was clearly written by the B team. Can someone get me the A team document? I don't want to waste my time with the B team document." Response that Bezos gives when someone resists him: "Do I need to go down and get the certificate that says I'm the CEO of the company to get you to stop challenging me on this?" |
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