Wednesday, January 30, 2013

India and Foreign direct investment in retail

Wall Mart is considered worlds largest retail company.It surpasses i revenue all other companies in any field.
3 Walmart Retail $446.950 January 31, 2012 $208.36 2,200,000 NYSEWMT United States Bentonville, Arkansas Michael Duke [6][
 Walmart still remains third largest company by revenue with the environment where oil is above 100 dollars in the world market.With over 2 million world wide employees it is a force to be reckoned with.It is an innovative company which has figured ,how to procure chinese made goods and sell them in america while eliminating all the middlemen in the process and making all the profits.At one time walmart was importing ten percent of all the chinese exports to usa.
It has been very successful in eliminating small retailers in america as they can not compete with wall mart for getting things at cheaper prices hiring cheaper labor or getting better technology or design.
WALL mart has been innovative in reducing wasteful packaging and just in time shipping with benefits of effeciencies of scale.
Wall Mart employes lot of american in low wages .It refuses to pay wages enough for families to live a comfortable life.Wages at wall Mart are so low that most of the married wallmart employees working fulltime can qualify for food stamps(govenment aid for food) and medicaid ( medical health insurance provided by government).
You will be hard pressed to find made in america items in Wall Mart in USA.

Will it help India if wallmart or its other cousins were allowed to come to india ?

Answer is yes and no.
Yes if it reduces the  wastages in agricultural sector by providing better transportation and storage facilities in India.That is not retail sector.That may be considered infrastructre development.

India should be careful dealing with large enterprises like Walmart .Walmart has annual sales of 400 billion dollars while India has its whole GDP at 1800 billion dollars.
Needs of India is to provide food, healthcare,education,mobility.roads ,transportation and electricity, clean water.
Walmart is known for providing low paying jobs,creating  efficiency in distribution

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