FDI IN RETAIL FDI in retail has been a controversial issue for a long time in the country .

There are many valid reasons for disallowing it. Let us teach priyanka mam some info about it 1) International Chains like Wal-Mart believe in buying things in bulk and due to their large Money power are the best negotiator .For e.g. look at this stat : Wal-Marts global turnover is 21.5 lakh crore - compare that to India's total retail market of 10.5 lakh crore.. Such a honey giant will come to dictate and monopolize Indian retail business and monopolies are never good for consumers. We all loves crappy windows doesnt we 2) Manufacturing of Indian firms will take a big it. Giants like Wal-Mart believe in sourcing their products from China where decades of manufacturing reforms has made in highly competitive in price and efficiency. Sadly our patriotic congress thought only a 30% limit is a big deal and there are talks /lobbying by Wal-Mart even to remove them. With China Geographical proximity to India, it would be much more sense to such retailer to source their inputs from china. A stat from US itself might correlate it When America had small stores, 19.5 million people were employed in the manufacturing sector. Thirty years later, that has come down to 11.5 million. . Of course but congress doesnt care when china intrudes on over land 3) For an economy where 80% of the population engaged in trade and local retailing is self employed, any organized retail competition in country would be disastrous for jobs and to millions of middle class. But Hey! Poorer people votes can be easily bought 4) Land rates will become higher since Big Retail is relative to Real Estate. Retail is a first cousin of the real estate industry. The problem is that the already skewed real estate market will only get more out of control and housing for middle classes and the ordinary folks that much farther. Our congress politician would be happy since their black money which is mostly invested in real estate would Boom

As Arun Jaitely sums it up India will become a land of Salesboys and SalesGirls

What should than be the policy perhaps cooperatives. Look at this stat Milk cooperatives are the best example of agri-produce retail. In India, for every rupee spent by the consumer, 68 per cent goes to the producer and 32 per cent to the retailer. In England, 34 per cent goes to the producer and 66% to the retail

FDI in insurance: 1) Not a well known fact but Pension today is offered only by Government Companies and though life insurance companies can launch Pension schemes, however on maturity the annuity amount needs to be invested into LIC to get an annuity This is done intentionally because there is zero chance of govt going bankrupt and senior citizens which is most critical age group can be drastly effected. The FDI in insurance would allow private foreign players in this area. But congress doesnt care after all they have insurance money packed up in Swiss banks 2) Having a large share of foreign shareholding would open insurance sectors to economy shock in other countries. This is not good for such critical sector.

GST BJP has never imposed GST but only mentioned shortcomings in it that Congress refuses to acknowledge. Some of them are 1) Current bill gives the Centre a veto power on the states taxation issues and congress has refused to budge over it. This will hamper the working of states and their fiscal autonomy Congress has always imposed more centralization of power and with it comes harassing of the opposition states. Egs Congress has persistently created hurdle in increasing Sardar sarovar dam that could be a boon for Gujarat Though whether fiscal veto is good or bad . For some situations it looks valid .For e.g. The states have demanded they should be given flexibility to levy cess during exigencies such as floods and droughts so that they do not have to depend on the Centre for fund 2) Improper implementation on the part of centre as implementation of single GST requires IT infra in the country something congress has not address and with its absence will come problem 3) State loss of share of revenue. The revenue losses calculated by the state government will touch '2,217 crore by 2011-12 at 16 per cent GST as proposed by the Centre. According to many states opposed to this demand. BJP has adamantly made clear that they welcome GST but the congress must address its legitimate demands which they havent in the past http://www.sify.com/finance/bjp-may-continue-to-oppose-gst-news--news-kisckHfbhje.html

http://www.livemint.com/Home-Page/fKKY87dDCHTnDObzXUwTNO/BJP-backing-gives-GST-afresh-lease.html http://www.moneycontrol.com/news/special-videos/bjp-not-opposed-to-gst-it-isstate-subjectsinha_1010728.html http://timesofindia.indiatimes.com/india/Help-raise-Narmada-dams-height-Narendra-Modi-tellsCongress/articleshow/20267271.cms

Market Pricing of Diesel and LPG The India inc for many times has heavily subsidized diesel and LPG as to keep cost down and benefit the poor section of the society. Such a deregulation would be disastrous as 1) Increase in diesel price would increase the transport cost and since even today in India due to well intentioned policy and well class infra (sarcasm intended) large amount of tariff commutes through roads, this would directly increase inflation and affect the poor man 2) Opening up defreuglation would aloowe oil companies to effect its price and without govt control it might not end well for the citizens of company as we are aware how good our private player anf congress are in handshaking 3) The deregulation as evident insulate our people from rise of international oil prices

http://indiatoday.intoday.in/story/government-decision-to-decontrol-diesel-prices-draws-bjpire/1/185890.html