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Dec 14, 2011

FDI in Retail in India... & Corporate Social Responsibility

In India FDI or Foreign Direct Investment in retail sector is very essential… *Conditions Apply

Foreign Direct Investment can be complimented with FRIForeign Redirected Investment in bringing up the social status of this country. The Multinationals(MNCs) stepping into the retail sector can use their exposure, extent and skills in realising their Corporate Social Responsibility. This can be an important step in reducing the gap between the Haves and the ones Having less.

Essentials of Foreign Redirected Investment or the *Conditions Apply

1. MNCs in retail sector should adopt and develop 3-5 villages near the city of their major operations.

2. 50 % of the produce of the adopted villages should be consumed my these MNCs.

3. Not just the big cities but FDI should also make its way in tier 3 and tier 4 cities. They can also open small sub stores to cater to the ‘bottom of the pyramid’ in these tier 3 & 4 cities like Mangalore, Jalandhar, Kanpur, Varanasi, Allahabad, Jabalpur, Raipur, Bhilai, Baroda, Nasik, Rajkot, Jammu, Dehradoon, Kasauli, Rishikesh and many more.

4. These MNCs should only hire Indians, after training from their respective foreign staff for about two months (this time is enough for training the Indian employees, will also add to the exposure of the foreign staff).

5. Existing retail outlets around the areas of the expected Foreign retail outlets, should be moved to other scattered areas of the cities. The state government should assist their relocation. This will help the local retail stores expecting losses due to the bigger chain of foreign retail establishments. It will also assist in reducing the economic disparity of the areas.

6. These small Indian retailer can be given tax benefit in direct or indirect taxes, to match the competition created due economies of large scale selling by foreign retailers.

7. A mandatory condition can be laid on foreign retailers to use the products made in India for 80% of their selling.

8. Also the services of these foreign retailers can be used in Public Service Departments like, Railway stations& Trains, Army canteens, stores in big public sector organizations. This will not only improve quality but also a healthy competition will be created to supply the best.

India and Indians need to protect their interest and that can only be done, by being selfish in the interest of the Nation. In the era of fierce Globalization, once again we can not be looted by a new form of East India Company (MNC). These Foreign companies are knocking India's door because they see an opportunity, we have failed to capitalize on. Invitation card to these companies should be an invitation for equal growth of the country and not the individual growth of the Multi National Company.
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