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22 Mar 2012

Have we oversold the India story ?

Indian Economy From Aviation, Retail , Healthcare & SEZ Perspective

A lot of experts spoke about the robustness of the Indian economy when the global recession of 2008 did not entirely slow down India’s growth. Experts spoke at length about the pragmatism of India’s central bank leadership and its policies to have evaded the crisis. They even spoke about the sturdiness of the capital market and the role of the regulatory authority.  Today the global crisis is over in most of the nations. United States is back on track with the unemployment figures at a controllable rate and the retail spending picking up. Similarly Japan is expecting the return on investments it made after the Tsunami crisis last year. The amount spent on reconstruction has boosted the economy and it is expected to grow at respectable 2 percent this year. Only Europe seems to be lagging behind, however it must be taken into account that integrating economies of over 30 nations is a daunting task and credit has to be given to EU’s leadership for having dealt with the crisis in a respectable manner.

When compared to the growth rates of these developed nations India’s 7.6 percent growth rate seems to be enviable. So is everything great with the Indian economy? Is it really faring the way it is being projected? Every year fiscal consolidation is the buzzword yet the budget keeps running into deficit. The finance minister keeps promising to bring it under control yet deficit has increased from 4.6 percent last fiscal to 5.9 percent this fiscal year. Most of the deficit is on the account of food, fuel and fertilizer subsidies. The government keeps making provisions for the underprivileged but it is equally true that they are not getting the desired benefits. Most of the provisions are limited to mike & paper.

Let us evaluate the top most (so-called Sunrise )  sectors in India that are consumer driven and how they are faring – Retail , Healthcare , Aviation and also the ‘Oversold & over hyped SEZ story’.

We will have a moment of truth !

Aviation Industry

The India Aviation industry is in a tailspin. Every other day Air India, Kingfisher, Jet Airways etc are making the headlines for all the wrong reason.

Air India the state-owned company has been relying on frequent government bailouts for its existence. Air India alone was responsible for the 10 percent of the global aviation industry losses in the year 2008 while it handled dismal 0.35 percent of the global passenger traffic.  It is also over staffed with over 500 employees per aircraft whereas the industry average is around 120.

Kingfisher airlines owned by the flamboyant liquor baron Vijay Mallya is in troubles. Banks have finally decided to withdraw support in terms of providing further debt.  The only hope which the country’s third largest carrier can have right now is a government bailout. However there is a vehement opposition to such an action by the government. Experts and other industrial groups have strongly advised against such an action as it is a free market economy and it would amount to sheer wastage of taxpayers’ money.

Jet Airways has recently been in news when the tax authorities decided to freeze its account as it was about to default on its service tax payments. The Jet Airways spokesperson attributed the problem to rising crude oil prices and the high airport duties and lack of support from government in terms of policies. According to them the delay in service tax payment was a minor operational issue. However the mounting losses over past few years tell an entirely different story.  They were in news few years back for having laid off over 1200 employees and later taking them back next day after intervention from a local politician.

Other airlines in India like Spice jet, Go Air etc. have been on the fringe and have been moving back and forth from black to red.  An only Indigo airline is making profits. Several other have bowed down under pressure. They were either forced to shut down operations like Paramount Airlines or they managed to exit at the right time like Air Deccan and Sahara Airlines.

So what exactly is ailing the airlines in India?  Rising crude oil prices are often quoted as the culprit. In India fuel cost is almost 40 percent of the operational cost of running an airline whereas in other countries it remains around 15 percent. High fuels cost give little margin to maneuver in terms of other aspects like offering attractive tickets rates and other offers. However this is not the entire picture. Even though the crude prices reduced from $ 156 barrel to $70 barrel in 2008 to 2009, the Indian carriers continued to bleed and posted losses.

The real problem is of excess capacity due to overselling of India’s growth story . India’s daily domestic passenger traffic is approximately 1.51 lakh passengers whereas the capacity is around 2.16 lakh passengers. Imagine the revenue loss everyday on account of unused capacity. This has happened only due to the mindless unplanned expansion by the airlines hoping to cash on the Indian Incorporation growth story sold by the gang of politicians right from Sonia , Manmohan & inefficient Pranab and highly promoted Montek !  The airlines promoters were chasing numbers which was arrived on mere speculation & playing a ‘Valuation game to make quick buck’. They went on buying spree and expanded their fleet. Today the aircrafts remain underutilized.  India has the aircraft flying hours of 12 per day compared to 16 per day internationally.

Looking at the complete picture it is difficult fix the responsibility on the airline owners. They are capitalists who are driven by market forces. They anticipated growth in market based on market forecasts and other factors like projected rate of growth of GDP. They expected growth in industrial output and service industry output and subsequent increase in airline travel. However the reality was far removed from it. The India Incorporation failed to deliver and they were left in lurch. Today they are hoping for a miracle to save them from their predicament.

Losses Made by Major Domestic Carriers in India

Carrier Cumulative Loss 3 years (Cr)
Air India 13,000
Kingfisher Airlines 3900
Jet Airways 2400

Retail Industry

According to the experts the retail trade industry in India is having a bright future & is consumption driven due to the ‘reducing poverty due to social schemes and increasing middle class due to India’s growth story ‘. One of the studies by North bride capital expects it reach about USD 850 billion by 2012. Out of which organised retail will be having a share of over 20 percent. In numbers it over USD 175 billion. That is a huge market. According to others this figure will be achieved by 2015. Similarly other reports have painted rosy picture for the entire industry.  Currently it is increasing at a rate of 5% yearly.  A further increase of 7-8% is expected in the industry of retail in India by growth in consumerism in urban areas, rising incomes, and a steep rise in rural consumption.

As per consulting firm KPMG’s findings in a March 2009 report, the organised retail market in India has witnessed steady growth at 15 per cent in fiscal 2009. It will grow much faster, at the rate of 30-35 per cent annually, than the traditional one in the coming years. Fast moving consumer goods (FMCG) and apparel sectors are likely to drive this growth.

According to the 8th Annual Global Retail Development Index (GRDI) of AT Kearney, India retail industry is the most promising emerging market for investment. In 2007, the retail trade in India had a share of 8-10% in the GDP (Gross Domestic Product) of the country. In 2009, it rose to 12%. It is also expected to reach 22% by 2010.

A India’s Retail Market Report by Boston Consulting Group

Year

Total Size ($ Billions)

Organised Retail ($ Billions)

Percentage

2005

244

8

3

2006

276

11

4

2007

316

15

5

2008

362

19

5

2009

368

22

6

2010

425

28

7

2011

471

35

7

2012*

528

44

8

2013*

590

55

9

*Forecast

 

The true story of the retail industry: It has become a ‘Valuation game’ due to over selling the India story of the growing middle class 

Subhiksha, Vishal Mega Mart, Koutons , Wadhawan group’s Spinach etc; do these names sound familiar and have something in common. Yes these are players in the organised retail industry who have succumbed and failed to deliver at their promoters expectations. These chain stores were at one time case studies of India’s organised retail success. So what actually forced them lower their shutters.   

According to Jagannadham Thunuguntla, head of SMC Global all these cases are classic examples of the retailers getting carried away by the India’s fascinating growth story and the phenomenal rise of the middle class.

The phenomenon is not limited with these cases mentioned above but also with the so-called successful ones in the industry. Country’s largest department store Shoppers Stop for instance posted an overall loss of Rs.4 crore in the last five years, while its debt soared to Rs.390 crore. The Tata group’s retail arm, Trent decided to close down its loss making chain, Fashion Yatra. It was launched in Oct 2008 and it was aiming at low-income shoppers in Tier 2 – 4 towns. Similarly Reliance Retail decided to close its Reliance Wellness format and not only that it scaled its hypermarket format down in some cities. Hypercity closed down its catalogue selling venture and also got rid of its Gourmet City format.

For the modern retailers penetrating further into urban markets has become a challenge. They have no option but to continue to create, preserve and then destroy the store formats they have come up with. Having closed down and revived several formats, most retailers have realised they need to constantly experiment with them to stay afloat.

So we can clearly see that India’s organised retail industry, which has the coveted potential of nearly a billion plus customers with enough cash to spare, has so far claimed a number of players, small and large. These players expanded too soon based on mere speculations.

While these retail stores were expanding and accumulating debts they hoped that the middle class with disposable income would be ready in short time to support them.  Things did not turn out the way they had planned. India Incorporation failed to deliver and along with that came the global economic crisis. These firms ultimately paid the price by closing down their shutters. For instance Subhiksha had expanded to over 1600 stores country-wide entirely on debt. This was a blunder that it committed as it was counting on the rising customer demand which was only on papers.

Not only the growth stories are misleading, at the same time the country’s back-end is not developed and huge investments go into developing it.  The vital supply chain required for the retail networks are entirely missing. This leads to a huge inventory cost which the small retailers are unable to cope up with. Take for example, it is estimated that in the food retail business in India, the wastage due to lack of proper storage facility is staggering 40%. This entire situation is largely the result of the lack of proper policy framework from the government.

The Indian retailers like Future group , Reliance and others are backing FDI so that they can get investment and save themselves from the fate of Subhiksha , Koutons , Gini & Jony , Spkykar , Vishal Mega mart , Foodland super markets, Surya Group etc . We have more companies going into CDR – Corporate debt re-structuring post the closure of the financial year 2011 ( March 2012 ). Banks do not wish to announce the failures or NPA’s in this year.

Ideally , retail businesses should have been making money due to consumer demand but the fact remains that India’s income and growth story is limited only to 6-10 towns and impacts less than 10 % of India’s population

 SEZ’s in India

India adopted the concept of zones from as early as 1965. Kandla in Gujarat was the first Asian export processing zone till the advent of the modern SEZ’s as such zones are now known as. With the passing of the SEZ Act in 2005, it was hoped that the Chinese success story would be replicated in India. It was expected that investor’s confidence would be established in the Government’s commitment to a stable policy regime. The real aim was to generate greater economic activity and employment with the establishment of SEZ’s following the Chinese model of economic growth !

There were numerous applications from multiple sources with individuals, indigenous companies, foreign MNC’s all rushing to have a share in the pie. Sadly it was a short phenomenon. The initial excitement was over as the problems started cropping up. Today in the last two years, as many as 60 applications for SEZs have been withdrawn, while 35 developers have applied for de-notification, according to data by CB Richard Ellis (CBRE), the real estate consultants.

Till date, the government has approved 584 SEZs. There are 381 notified SEZs, of which 148 are operational. Of these 148, only 17 are multiproduct SEZs. The remaining ones are SEZs dealing in engineering, electronics, IT/ITeS, hardware, textiles, bio-technology and gems & jewellery.

So what exactly is wrong with the SEZ idea in India which paid its dividends in China, Poland and Philippines?

On the whole the SEZ idea in India seems to be very much the product of the irrational expectation which has been fueled by imagination.

Healthcare Companies :  Most of the healthcare companies are ‘managing profits’ and as i write , a major healthcare ( hospital ) chain and a pharmaceutical conglomerate is about to wind up in the next 3 months . Imagine a healthcare & hospital company winding up ?

So the Congress party has sold the India story purely on ‘Imaginative basis and on speculative data’ numbers , have no idea of what is fueling inflation and what will deliver growth ? With all sunrise sectors on a downslide , it is better to replace these ‘jokers’ and bring in people who can understand the economy and run it efficiently .

Based on the governments high-octane pitches for the India’s growth story , consulting companies have brought out reports supporting government announcements , and  business houses have approached investors or moved to stock market and raised money and have put up expansion plans . But the reality is that, India does not have a growth story with the current fundamentals being very weak and ‘Leaky’ social schemes are making the party rich and not the population !

Also,  that the current stand of the government to raise the tax issue with Vodafone is a clear proof of what i am writing . India is desperate for funds and behaving like a dictator reversing a five decade legislation for just 10,000 crore ( USD 2 billion ). Does it not show the lack of morality and desperation for funds ? Rest will become apparent in April – May-June Quarter !

Lastly , the financial deficit of the government proves the rest ; all is not well with the India ‘bubble’ story ! Tough times are ahead , if we don’t take immediate action !

Rajendra Pratap Gupta

Healthcare I Retail I Rural Economy I Public Policy

www.commonmansblog.com

Posted in Budget, Economy & Recession, FDI in retail, GDP, Global recession, Healthcare reform, Quota, Rajendra Pratap Gupta, Recession & Solution, Retail Sector, Technology, Uncategorized, US Economy and tagged , , , , , , , , , , , , , , , , , , , , , , | Leave a Comment
21 Dec 2011
2 Comments

Potato Politics and Commercial Airport in Rae Barielly !

Dear Rahul,

Last week you made a statement that , ‘ 50 grams of potato chip are sold for Rs. 10 , and that this is made from just half potato’ ! Correct ! But again , Rahul don’t forget that the foreign companies no lesser than Wal-Mart ( likes of Pepsico ) are selling these expensive potato chips made from half a potato . So, does it not make more sense to check the growth of MNC retail chains / companies in India, who are buying cheap potato but ‘profiteering’ by selling chips at Rs. 10 per packet and the poor farmer is losing his produce at a throw away price  ?

Also, I wish to draw your attention towards the fact that currently the farmers are paid Rs. 1 per KG. I cannot understand why will ‘Profit & balance sheet obsessed’ Retail chains pay more to these poor farmers !

Simply stating that the middlemen would be removed and so farmers will get more, is a fallacious statement and conveys a lack of your ignorance about the realities. I think your party and Maya ji are fighting in the ‘aerial warfare’ with no touch of realities on the ground

I can clearly see the trick in getting the farmer leader Ajit Singh into Congress. Clearly , he will help you pitch farmers in favor of FDI and also convert a few of them as voters . But these tactics might not work in the long run , hopefully there are millions like myself who know the reality of these old tricks of congress for vote bank politics  !

I read another news that Rae Bareilly will get a commercial airport

Let me enlighten you about the Awadh region where your dad , mom & yourself have fought & won elections for decades

The Awadh region once ruled by nawabs and taluqdars and known as granary of India because of its fertile Gangetic plain. The area has given prime ministers to the country – Indira Gandhi, Rajiv Gandhi, and Atal Bihari Vajpayee. But most districts are still backward.

Population | 3.654 Cr

Per Capita Income | Rs 13,150.81

Faizabad division | Faizabad, Ambedkar Nagar, Sultanpur, Chhatrapati Shahuji Maharaj Nagar, Barabanki

Devipatan division | Gonda, Balrampur, Shravasti, Bahraich

Kanpur division | Kanpur, Ramabai Nagar, Auraiya, Farrukkhabad, Kannauj, Etawah

Lucknow division | Lakhimpur, Lucknow, Sitapur, Hardoi, Unnao, Rae Bareli

Now here is an interesting fact : Purulia is better off than Rae Bareli and Amethi and this was quoted in this article of Business Standard & Mid-Day. http://www.mid-day.com/poll2009/2009/apr/270409-Purulia-is-better-than-Amethi-Left-tells-Rahul.htm 

Let me walk you through a planning commission report on the per capita domestic product , and the NDP per capita in your family’s constituency.

Net domestic product (total and per capita) 2006-7 as per planning commission, Government of India

 

  At Current Prices At Constant Prices 1999-2000
  Domestic Product (Total) Rs. in CR. Per Capita Domestic Product (Rs.) Domestic Product (Total) (Rs. in Cr.) Per Capita

Domestic Product (Rs.)
Rae Barielly 3288 10361 2489 7844
Sultanpur 3955 11168 3077 8687
         

Source:http://planning.up.nic.in/Annual%20Plan%202010-11%20for%20website/Volume%20-%20I%20(%20Part-II)/Chapter-6.prn.pdf

 So clearly, getting an airport in Rae Barielly is a stupidity of the highest order, and that too, when it is clear that the region is back ward and people can barely survive a year without good rains leave alone travelling by air ! Please read the per capita income and check out if the poor people of that district can even afford the air port taxes leave along the airfare !

 I have visited Amethi and met up with dozens of self-help groups that you have formed in Amethi, and let me tell you that, you are just ‘Using’ the emotions of these poor people for becoming a member of Lok Sabha from Amethi

 While I was travelling to Amethi, none else than your own people (close associates) have informed me that the worst road in India is between Rae Bareilly and Sultanpur. Do I write more!

 Learn from Mr. Vajpayee , who started the Golden Quadrilateral project for the Aam Aaadmi and your government is more interested in airports, so that you can fly directly to Amethi rather than taking the 2 hour road drive to Amethi via Lucknow . You are wasting the hard earned money of common men like myself , who earn by hard work and pay 1/3rd of our income as taxes to the government , and people like you go and throw it for things like building an airport at Rae Barielly !

By the way i could not understand that in the same week you talked about potato being sold at Rs.1 per KG and the other side an Airport in Rae Barielly ?

 Gandhi Dynasty has taken India back ward by at least 30 years , and we need to stop it soon.

 I also don’t understand what is your intent for the so-called ‘Food Security Bill’ and ‘Job Guarantee Bill’. You will give fixed income to people so that they do not have to work and then you guarantee them food ? So it means that people will not have to work and earn the food , and will get it free ? Where will the Rs. 5 lac crore come from for these schemes ?  Will these things take India forward or your party men who will get the ration shops to distribute ( read divert ) grains and sell them to the open market, and finally , the poor Aam Aadmi will be left stranded on the road !

 Wake up Rahul ! Time will never forgive your people, and the elections will decide your fate not this ‘aerial warfare’  .

Rajendra Pratap Gupta 

Healthcare I Retail I Rural Economy I Public Policy

www.commonmansblog.com

Posted in BPL Category, Economy & Recession, FDI in retail, GDP, Growth Numbers and tagged , , , , , , , , , , , , , , , , , | 2 Comments
14 Dec 2011

New Year might have plenty of bad news for the Economy

The New year ( 2012 ) will not be a good year for India . The industrial production is falling , interest rates have gone up , corruption is on the rise , inflation is going up, rupee is going down compared to the dollar, and the investment outlook for India is negative due to wrong policies pursued by the congress government over the past several years .

It is time to change and bring a fresh look at the fundamentals of the economic policy & social disbursements 

I was speaking with one of my friend from abroad , and he was of the view that USA / Europe  is headed for the worst and India is no better off ! Hope it is not true !

Hoping that things will change miraculously !

Rajendra Pratap Gupta 

 

 

 

Posted in Economy & Recession, GDP, Global recession and tagged , , , , , , , , , , | Leave a Comment
06 Dec 2011

Communal Party of India – AICC – Congress

Communal Congress- History repeats

Today’s headline in The Times of India ( 6th December 2011 ), “Centre bids to push Muslim quota ahead of polls in UP”

This news reminds me of  the 80’s , when Shri Rajiv Gandhi used to meet Shahi Imam of Jama Masjid before the elections,  for issuing a fatwa to Muslims to vote for Congress .

It is time that people realized the real communal party of India – AICC !

Rajendra Pratap Gupta 

Healthcare I Retail I Rural Economy I Public Policy

www.commonmansblog.com

 

 

Posted in BJP, corruption, Economy & Recession, Recession & Solution, Religion and tagged , , | Leave a Comment
06 Dec 2011

2011 – Year of Democratic Innovations

Year 2011 – Year of democratic innovations

 

It would be appropriate to call the year 2011, the “Year of Democracy & Democratic innovations”. Year 2011 witnessed the birth of an Idea, which will either take the democracies to a new high or a new low depending how the weapon is used. This year (2011) was certainly of political innovations driven by grass-roots and Internet, and has given one lasting lesson to politicians and rulers ‘ If you have a responsibility, behave responsibly’.

 

Year 2011 will pass as the most happening year in the history of politics and governance.  We saw how Julian Assange unmasked the United States of America using the power of net, and how the Arab Awakening started on the net and the decades old regimes fell, and How Anna Hazare used the power of media to force the government to accept its demands & commit to change. It is no ordinary feat using the ordinary and every day use mediums to bring about a lasting change. We saw many changes without large-scale wars and bloodshed. It is unbelievable, but it happened, and not just in India but across the World!

 

Back home, this year, we have seen how the fierce standoff between the Government and the ‘Social activists’ / ‘Civil Society Organizations’ moved the ‘Policy Paralysis’ to ‘Parliamentary paralysis’. For sure, It is clear that innovations are not just limited to science labs and companies, but even the small and big democracies are innovating and finding ways to be heard using the power of low-cost mediums and issues that affect the ‘Common Man’.  The ‘autocratic democracies’ have to learn to accept and function in accordance with the wishes of the people whom they are meant to serve

 

I have always believed that ‘Politicians’ once they acquire the ‘Power’ forget the basic philosophy of governance that ‘ Powers flows through them, and not from them’ and that, they are supposed to be ‘serving’ the people & not ‘Governing them’, using the power to transform lives rather than using their position for ‘I, ME  & MYSELF’

 

So what is in store for politicians and the civil society now?

 

It is clear that the public has a new weapon of mass destruction – Dissidence with Disobedience till things fall in place!

 

We have seen that the Indian Parliament did not function during the monsoon session due to various issues relating to scams and corruption, and now that FDI in retail has become a contentious issue and has brought the government to a halt within the parliament. The UPA government, which was earlier being haunted with ‘Policy Paralysis’, has now turned to ‘Parliamentary Paralysis’ for the nation. It is both good and bad for a democracy. As long as this ‘Tool’ is used for right reasons for the well-being of the masses, it will bring about positive change, and when it becomes a ‘Tool’ to pacify the ‘Ego’ of the opposition parties, this could be the worst weapon to bring down the democratic ethos of any nation. Since FDI, 2 G scam and Lok Pal bills have vast negative ramifications, and so the opposition and the ruling party will get ‘the benefit of doubt’ on this modus operandi, but if the opposition uses the same tool for each and every flimsy issue, then the public will directly answer during the elections. It is clearly being felt that, the public is getting enlightened, and watching the debate and taking a stand and backing it with ‘viral marketing’.  We will see the results much before 2014 and the Grand Finale in 2014.  It is time that those who have responsibility, must act responsibly to take this nation forward.  It goes without saying ‘ You can fool some people all the time, all people some time but not all people all the time’.

 

Rajendra Pratap Gupta 

Healthcare I Retail I Rural Economy I Public Policy

 

Posted in Economy & Recession, FDI in retail, GDP, Global recession, Growth Numbers, Rajendra Pratap Gupta, Recession & Solution | Leave a Comment
26 Nov 2011
1 Comment

FDI in retail – This is a harsh reality – Is FDI really a boon for India at this time ?

Government’s arguments for FDI in retail are a proof of the fact, that this government does not understand India, and looks at Indians from USA’s businessmen’s perspective. Congress government has become the biggest lobbyist for pursuing the business interest of nuclear & retail corporations from USA & Europe at the cost of India’s middle class

Today’s Economic Times (26th November 2011) headline ‘ Govt Sells Multi-Brand FDI with best bargains’ gives a list of reasons why the government is supporting, (rather pushing FDI ) in retail. Let me put the Common Man’s view and take on each of these arguments

1.     It will create 10 million jobs in the next 3 years

A) According to the CII report in 2007, ‘India will need 10 to 12 million skilled workers every year for the next five years to meet the growing demand from the support services and there is a need for strong intervention to ensure the availability of the workforce’. So is the government trying to say that it is only the retail chains that will create 10 million jobs in the next three years?

B) Let us examine how many jobs Wal-Mart created in America & how many jobs did Wal-Mart create in India for the past 3 years of operations both as a wholesaler and as a retailer ? How many jobs our Indian retailers like Future group, Aditya Birla retail and Reliance retail created in the past 3 years?  We will clearly see that they did not even create a million jobs!

C) Also, government does not talk how many Kirana stores will shut down in the next 5 years and how many homes will be denied of a source of income ?

D) Wal-Mart or for that matter any retailer works on the least number of workers per square feet (lean management structures ) ,and so it will kill the 50 Kirana stores thereby get at least 250 people out of jobs and then create 50 jobs per super market.  Is this factored in the statement? I am willing to prove this in the current retail scenario leave alone the scenario when the foreign retailers come in?

 2.     Several billion dollars of investment in retail

A) If retail is a great business, the government banks should give loans from domestic financial institutions and let the homegrown retailers grow and build scale and size and let the profits remain in India. Why should we give 51 % of the ownership to foreign players, as these people will sell to Indians and take the profits out of our country.  USA / Europe will solve their income and earnings problems and India will get into problems of high inflation and more volatile stock market. Also, Indian retailer being less than 50 % of their share in the retail will become servants to these MNC chains under the current 51 % FDI norms.

B) Why did the government not start with 26 % FDI in multi brand retail for the first five years? Why suddenly start with 51 %. Please justify?

C) Often it has been quoted that the foreign retailers will bring technical know how to Indian retail market and boost the economies of scale and productivity? Which technical know how is the government talking, it needs to explain? I have been a COO / Board member of a major fortune 20 company’s retail operations in India, and I can tell you that these foreign retailers only bring money and no other expertise! They work on high profits, highly automated environment and lean man power structures.  So government’s reason of the technical know how is fallacious and is showing that we Indians do not understand retail. Let us look inward and see our home-grown retailers like Future group and Aditya Birla retail .They are certainly growing . Government must bring out a detailed white paper on the so-called ‘Technical Know how’ these foreign retailers bring to Indian retail market?

D) With these billions of dollars coming in India, India’s real estate will become expensive thereby, contributing to keep the inflations levels high for the medium class not just for real estate but for all the sectors

E) Also, these billions of dollars are not charities to India or Indians . These are investments by retailers which follow a ROI ( return on investment concept ) for every dollar spent. So for sure , they people will invest in retail one dollar and take out 10 dollars from India over the next couple of years . Retail is mostly done on inventory management which is on credit from vendors . These retailers follow a credit cycle which ranges from 15 days to over month . So with a double-digit profit margin , these retailers will only be investing one time into infrastructure and then make money without investing at all ,as all the inventory is on a credit cycle . ‘Sell and pay’ is the mantra for these FMCG retailers ! Even the space which is rented by these retailers is leased to product companies for hefty display charges. These retailers charge a heavy fee for listing products in its store before selling .Our policy makers , wake up and understand the real dangerous game of FDI in retail and don’t get carried away by the billions of dollars of investment . It is not true . One time investment by these retailers will be a life long profit for their parent company’s home country

3) Farmers will get more than 12-15 % of the consumer price they get for fruits and vegetables

A)    In reality, farmers will never get a higher price but will be exploited by these MNC Chains  .In fact, these MNC retailers will push in for stringent quality checks and other prohibitively expensive conditions for these farmers thereby, forcing the poor Indian farmer out of his livelihood. Most of the retailers will take to contract farming, and thus the farmers will be reduced to being laborers in the hands of these MNC chains.

B)    The History of these MNC chains has shown the these chains are out to squeeze blood out of their vendors and farmers will certainly be vendors for these MNC chains and nothing else . Wal-Mart and other retailers are facing dozens of cases of exploitation and gender bias in developed country where the legal system is strong . Imagine what will happen in our country ?

4) Consumers will get producers at Cheaper Prices, as competition will bring down the prices

A)    Even without competition the prices will come down by a few paisas or may be a few rupees, but, all these chains will increase the MRP  (Maximum retail prices) of the products, and so the consumer will end up paying more than what s/he pays today. Take an example of the MNC pharma companies. Since there is a ceiling of price increase by 10 %, so every year the pharma companies increase the prices by 9-9.5 % and thereby, circumventing the price increase regulations.

B)    It is clear that the consumer is not a winner, no one pay’s from its pocket OR profits to the consumer. If there is a price increase on the input costs, the same is passed on to the as an increased MRP or the quantity is reduced for the same price. So the consumer’s pocket is always ripped apart by these retailers

 

5) 30 % mandatory sourcing from small-scale sector will help small industry

A)    This has not been a convincing argument, so we are trying to tell that a small company out of Varanasi will compete with HUL and win? Come on Dr.Manmohan Singh, are you trying to fool Indians? I understand that you studied at Oxford, doesn’t mean that rest of the Indians are going to get carried away with these statements

B)    Also, these MNC chains will put conditions that are either too stringent to be complied to or prohibitively expensive to be implemented by these SME’s, and so finally, these chains will find a reason to evade buying from these SME’s. Also, that the SME’s are not just limited to India, but across the world, so probably, Chinese SME’s would benefit more than Indian SME’s

C)    These retailers charge a heavy fee for listing products in its store before selling. How will SME’s afford that ? The fee currently for Indian retailers varies from few thousand to over a lac for products for companies . SME’s will never be able to benefit from these chains even if they are able sell to them, as they will pay for listing and then cry for the payment – which will depend on the vendor payment cycle varying for weeks to months and small vendors (SME’s ) cannot survive this big box retail game

6) 70 % of retail is in food items and these are mostly sourced locally

A) If 70 % of the retail is in food items and this is sourced locally, why allow 51 % of the profits to go out of India? So FDI should not have crossed more than 30 %!

B) Local Indian retailers (existing Kirana stores ) must be trained to deal in these food items and deliver better value for the country and its economy.

C) This argument of the government goes against its own policy. So whereas, 70 % of the products would be food items, 51 % profits from these categories would go out of our country, thereby, clearing pushing the inflation higher perpetually for the next couple of decades. As there will be less money in our country chasing more goods ( as money would have found its way to parent MNC)  – Simple economics Mr. Kaushik Basu!

 

7) Ikea already sourcing 30 % of inputs from India

A) So if Ikea is already sourcing 30 % inputs from India, let other chains also do the same before starting their shop in India.

B) If these MNC chains buy from India and sell in India and take 51% of the profits abroad, what is India’s gain? The government must come out clean on this?

8) Approval only after investors meet all conditions, including 50 % investment in back end

A) This statement of investment in backend is a foolish statement. Already 100 % FDI is allowed in wholesale, why justify it for retail and link it up? Let these retailers first invest in back-end for the first five years and next five years invest in front end

B) Government has FCI (Food corporation of India) godowns and what is the government doing for enhancing the efficiency of this biggest warehousing corporation – Can this FCI not  become the Cash and Carry for small retailers ? A drastic improvement in supply chain of FCI godowns can bring down the wastage of food grains by hundreds of tons if not thousands of tons. Please pursue the project of Mr.Atal Behari Vajpayee of Golden Quadrilateral and link up all the FCI godowns, and start a national Agriculture produce transport corporation to start weekly transport during the harvesting season from the farms to FCI and nearest towns. The farmers co-operative and IFFCO should manage this. With this, farmers will not only get good prices but the wastage will be reduced substantially. Why are you looking at FDI to solve this simple problem of inflation . This can not only solve the inflation problem but also improve productivity at all levels , create more jobs ( may be , millions of low & middle-income but high productivity jobs ) and reduce inflation .

C) Learn from ‘operation flood’ by AMUL and how it solved the shortage of milk problem of our country and created a world-class brand. See what M.S.Swaminathan did with ‘Green Revolution’ to increase the production of grains in our country. Please do not justify that foreign retailers will help you bring down inflation. Remember that ‘Inflation is reversible but FDI is not’ and do not sell our country to foreigners for a short-term gain of a few billion dollars to our economy. This is anyway not the dollars to our economy, but the investment of dollars to take back dollars. I am sure that all these MNC chains a ROI (return of investment) method of calculating the investment returns. So I wish to ask our government that what does the ‘retail FDI dollar’ bring to India, which Indian government cannot do with its own money?

9) Government will have the first right over procurement of farm produce

A) This statement has no value. Government has shown no concern for farmers except considering them as voters and leaving them at the mercy of rain gods.

Questions that the government must answer

  1. What has the government spent to train local Kirana stores in the past five years?  When yesterday only the government asked for Rs.56000 crore of the tax payers money despite a huge budget deficit, why did it not ask for even a Rs. 1000 crore for retailers training and up gradation?
  2. Why did the government not start with FDI in retail at 26 %? Why suddenly at 51 %? Has the government become a lobbyist for MNC chains?
  3. Has the government done its own independent studies for the impact of retail chains on Kirana stores?
  4. The biggest plank of allowing the FDI is that inflation will come down. So despite allowing FDI, if the inflation does not come down, will the government revoke FDI in retail? Does that rider appear in the CP (Condition Precedents) for allowing FDI in retail?
  5. Government needs to prove that FDI in retail can create million jobs every year. How and why, and which retailer will do that. All this must be put in the business case for allowing FDI? Why is government becoming the spokesperson for these MNC retail chains? What is the deal?
  6. Where and how much wills the retailers invest in back-end? This has not been specified?
  7. Why has the government not capped the retail margins of foreign retailers in India?
  8. See point 5 B, why have women self-help groups / handicrafts been excluded from being the beneficiaries of the retail entry
  9. Why are retailers not mandated to invest in retail training ?
  10. More questions to follow

Rajendra Pratap Gupta

Healthcare I Retail I Public Policy

Email:  office@rajendragupta.in , office.rajendra@gmail.com

Posted in BJP, Economy & Recession, FDI in retail, GDP, Uncategorized and tagged , , , , , , , , , , , , , , , , , , , , , , , , | 1 Comment
06 Jun 2011

History repeats in Congress – Mrs. Sonia Gandhi & Dr. Manmohan Singh , you must go now !

Mrs. Gandhi , Rahul & Dr. Singh,

Today, this great country is ashamed & aghast due to your cowardly & cold-blooded attacks at Ram Lila Maidan on 4th June 2011. India has reached a new low under your regime !

Every now and then, the supreme court has to intervene and direct the PM & his government to discharge routine duties towards the nation & its citizens. When the constitution of India was written , the constituent assembly laid the foundation of an independent judiciary , legislative & the executive , but due to gross misuse of constitutional powers bestowed upon the Prime Minister through his remote control boss ( Sonia Gandhi ) , you all have forced the Supreme court to run the government on important issues like corruption and high handedness , and this has never happened in the history of India .

Politics & governance under congress has reached the lowest level , and today, everyone realizes that the supreme court is running the nation on a day-to-day basis ( directly or under its fear of intervention ! ). After 4th June , Supreme court will have to make bureaucrats discharge their duties . Jai ho Supreme court and shame -shame for congress !

Congress created hue and cry when Rahul was arrested by Mayawati & now that you have mercilessly beaten up the sleeping protestors ! This clearly indicates a few things :

 1. If one makes black money and does wrong , Congress will not kick you out ! ( means that Congress patronizes people who do wrong things and make money ). I believe, that you could not buy Ramdev through your so-called negotiations , and so you tried to assault him to kill him in cold blood ! I am sure that your government must be now planning to invoke your cronies in CBI , IT , ED & FDA etc to raid Ramdev’s establishments and take him to task. Same you have done to those who decided not to toe your line like Amitabh Bacchan and Narendra Modi

2. If people peacefully fast and demand the black money back , Congress will go and kick out people in mid night ?

This act on 4th June was not short of what is happening in the Arab World !! Mrs. Gandhi , since Congress party is running the government, and you have been the President of AICC & the Chairman of NAC , you have proven to be the most incompetent person in Congress as its leader. All your top functionaries are economists ( Chidambaram , Manmohan , Pranab, Montek ) , still you have failed to bring down the inflation , which was to be done in the first 100 days of coming to office !! , Common man has been left behind in all that your party is doing !

Congress has been reduced to the party of scams in the name of social schemes ! Corruption has become the order of the day & currency in this nation . Foreign media has tagged India to be more corrupt than developing ! A. Raja has become amongst the top most corrupt person in the recent international list released by a leading magazine . You are bringing down the country before the global forums . We cannot tolerate this as Indians , and I request you as a common man to resign and go immediately !!

I request the opposition parties to declare a “Corruption , mehagaye aur tanashaye ke virudh Bharat Bandh” ( preferably on a Sunday , to cause least inconvenience to people ) as a show of resentment against your dictatorial and corrupt rule . Congress has always played the politics in the name of Poor , Gandhi family and Religion and cheated the innocent poor for decades , it is time to end this rule . All national leaders marked in this email must come forward so that we do not repeat what happened on 4th June .

I must put these facts before you

The Indian Emergency of 25 June 1975 – 21 March 1977 was a blot in the name of democracy by Indira Gandhi 

 4th June 1989 , Tiananmen Square happened, and Sonia Gandhi’s Congress did it again on 4th June 2011

3– 6 June 1984, Congress stormed the Golden Temple and killed Sikhs in Operation Blue star Congress leaders led to mass killing of Sikhs post the death of Indira Gandhi

4th June 2011, Congress brutally attacked peaceful protestors in cold blood with an aim to assault Baba Ramdev, repeating the history of Gandhi’s & Congress , and the party has the audacity to call itself as United Progressive Alliance (UPA ) ? Shameful acts . This is what happens when you are afraid of being exposed and your black money is under threat ; Go out and kill innocent in cold blood , and , finally, the Supreme court has to take suo moto action for this cowardly act.

If you have to show courage , go to Pakistan and do an act like America did to capture Dawood Ibrahim !

Though this email , I request our national leaders in the opposition to promise that they will honor our Supreme court judges with at a least Padma Vibhushan ( if not Bharat Ratna ), who woke up our highly educated but ignorant PM to act against Raja, and the judges who took suo-moto action for the cold-blooded attacks on peaceful protestors on 4th June .

Our Tiananmen Square has happened, and now our Egypt like protest must happen . Time for India for a ‘Doosri Azadi’ from this inefficient , corrupt , bankrupt & dictatorial government . Sonia and Rahul are failed politicians and bankrupt with ideas , and a liability on the congress . I am hoping congress will stop idol worship of these two leaders; who brought down the congress in the eyes of a common man, and India in the eyes of the world & hopefully opposition will rise up to restore the faith of the common man

A Common Man

Rajendra Pratap Gupta

www.rajendragupta.wordpress.com

Posted in BPL Category, Budget, Climate change, corruption, Economy & Recession and tagged , , , , , , , | Leave a Comment
14 Apr 2011

Nehru Gene , Congress & Faulty Policies – Let’s move on or else suffer more !!

March – April meant a lot of travel and meetings for myself , but the most interesting part were a few conversations that I will never forget !!

Whenever I am travelling to places within India and abroad , I make sure that I interact with people and ask them how much they know of our great country and what they feel about it . I am always proud to be born in this great country . May be , this drives me to find some answers to questions that need not be stated here !!

One conversation I had was  with a senior columnist in Kashmir during my visit last month . While we were talking , the issue of partition came up ( this topic is close to my heart as my mother was born and brought up in Lahore , now in Pakistan ) .

This columnist had an interesting point : He mentioned that due to the insatiable lust for power in Nehru , India got divided . His belief was that, Jinnah was at his fag-end due to cancer  , if only Nehru would have waited for one more year ( It is not good to have a wish that one dies of cancer but…)  , we could have saved ourselves from partition . The columnist went on to add , how could India leave Khyber pass and partition India and give away the pass to Pakistan ;The only way to reach Europe ?? I do not know geography so much , but he had an interesting point !

Other discussion I had was with my cab driver on the way from Washington DCA airport to the hotel . I figured out that the driver seemed to be from our part of the world , So I asked him where he belonged to ? I was right , he was from Pakistan but settled in the US for over 28 years !! While we kept talking about our countries before Partition and the sad story of strained relations now . He shared some very interesting information of why India got partitioned ? 

According to this cabbie . India had the maximum number of Muslims , and Nehru & Congress party knew very well that,  if India remained united , the vote of Muslims would swing to Indian Muslim League and not come to congress , so Nehru used his proximity with Edwina Mountbatten and planted the thought of partition in Jinnah. Well, I never thought of this angle !! Further this cabbie informed that, if you see the history of Jinnah a few years before freedom , he was never in favor of a partition . It was a congress and Nehru’s game plan and they never wanted to share a few states with IML ( Indian Muslim League ), which would have garnered power in some states, as some states had Muslims in majority , and Hindu’s & Muslims lived in complete harmony .

I completely empathise with this cabbie . I can only state that my mother’s family stayed in Lahore and Karachi , and I have seen my grandfather writing letters in Urdu , it never was an issue . It was planted by congress and today both nations are paying a price for the naked & insatiable lust of Nehru & his congress for grabbing power in 1947 .

The amount of money both these nations have spent on armed forces and conflict would have made this region developed in just 25 -30 years after freedom . But what we got was freedom for Nehru family to rule this nation and not for India !! Now we can well understand why Gandhi ji was in Calcutta during Independence and not with Nehru !! Gandhi ji died at the right time. Had he been alive , he would have revolted against Nehru .

AICC should have been dissolved after independence : Gandhi ji was never in favor of AICC continuing after freedom , In fact , he made a suggestion that since the objective of the congress were achieved by getting freedom from the British , it must be dissolved . But we know that Nehru had a different plan and India continues to ruin under this party !!

One of the interesting viewpoints I can share is from LKY ( Lew Kuan Yew , Father of Modern Singapore ). He has openly criticized Nehru for aping the central planning of the Soviet Union . LKY went on add that Nehru was a good writer & poet but not a great leader for India . Nehru kept promoting the non-aligned movement for the developing world but strongly sided with the soviet Union ( that is , he said one thing and did just the opposite , this is what I call the ‘Nehru Gene’ , which by the way is a legacy of the Gandhi family and its congress ) , and in the end, Nehru  caused more harm to India than any other leader ! Nehru had a great opportunity to change the course of the nation immediately after freedom as he had a free hand and people believed in him , but he missed the opportunity .

Indians know that Nehru was the one who took Kashmir to United Nations , he was the one who promoted industries and not SME’s & agriculture ! Nehru guided India towards a disaster with his short-sighted policies ‘Nehru gene’ still rules the Gandhi family and the congress, and it is time to let this party be out of power for at least two terms so that the country can be brought back on track

Rajendra Pratap Gupta

www.rajendragupta.wordpress.com

Posted in BJP, corruption, Economy & Recession, Politics & Recession, Poverty in India, Rajendra Pratap Gupta, Religion | Leave a Comment
19 Feb 2011

Corruption mera Karma aur Coalition mera Dharma

Dear Manmohan ji,

The common man is really frustrated with your ‘blame game’ approach in the recent press conference . When you became the PM, we had hoped that an economics Professor who had been educated in the best of institutions in India and abroad , could impress upon the people in his party and change the governance of the nation without compromise. But , by staying silent on all the unethical activities in the congress , not only you denigrated the national institutions , you lowered the stature of the Prime Minster’s post & eroded the trust of the common man .

In the press conference , you said that, ‘let’s not just focus on scams as that lowers the image of the nation’. I wish to point Dr.Singh that, not just the image but also the financial health of the nation has been affected due to your being a patron of corruption !!

You have clearly conveyed that ‘ Corruption is your Karma & Coalition is your Dharma’. While it is known that you had some good qualities like knowledge , honesty etc , but you did not exercise those qualities , so in a sense , you became a greedy professor wanting to just stick to the Chair of the PM .

I am wondering how come Pranab Mukherjee was not questioned in this scam when he is the finance minister ? Is he just responsible for collecting taxes and not about the financial loss to the nation ? He must also follow Raja in Tihar . No one is above law ! Also, If you have the guts , please question Mukesh Ambani . He is the one who routed international calls as local calls and committed a criminal offence. What has your government done ? The Telecom co’s CEO going to CBI office and having coffee & lunch does not impress the common man. We know that these visits might be a ‘eyewash’ for the common man at the behest of congress party, and the common man is made to believe that your government is acting on corruption . Do not put off the JPC demand quoting these arrests .Suresh Kalmadi is still enjoying the dollars made in CWG !! Why he is he not in Tihar ?

Dr.Singh , every one in India is talking about the black money in Swiss banks , Dr.Singh , India has more black money than all the Swiss banks combined ! Why Pranab Dada does not start taxing expenditure rather than taxing income !! Every government officer is directly or indirectly involved in bribery , every business is into tax evasion , every builder takes a portion of the cost as black money , every minister fights election on black money . Still you think that only Swiss banks have India’s black money ? Swiss banks , I believe would only have 10-15 % of the black money , rest is still in India , and may be, some money might be in middle eastern countries .

Please change your tax system. If you tax one’s income , he might not disclose it , but at the end, the money is used to purchase something , so go and tax expenditure , the government will collect more taxes , and we would be happy paying taxes on expenditure !!

Now back to my question of your moral flexibility to run the government .

Why have you tied up with DMK in a poll bound Tamilnadu ??

Why has the CBI let off Mulayam in the disproportionate assets case ?

Is this a part of Sonia’s five pronged approach to fight corruption ???

Rahul : Where is your clean up of the party going ? Are you cleaning up the honest people by such tie ups ? What about your call to go alone in polls ? While I was at 10 Janpath with you a few months ago , a first generation leader whom you inducted in your party had met up with myself , and he told me that you are just getting educated people in the party . So all new congress leaders have started enrolling in MBA !!. Finally , this call for educated leaders is leading to elite with money bags joining youth congress. You are totally disconnected from the reality on ground !! By the way , Gandhi’s are always disconnected with reality . Nothing new !!

Dr.Singh , by asking Supreme court to directly monitor the probe, you have shown that you have no interest to act on your own or you do not trust that you will do a good job in the case ! We all know why retired supreme court judges get plum posting !! So if nothing comes out of these so called ‘Blame Free investigations’ ( Which we know will happen ) , you will shed off your load saying that you had asked the top most court to direct the probe and that you are like ‘Ceaser’s Wife’ etc etc………………….. and you cannot be blamed for the culprits being acquitted !!

When you constitute the JPC , please also mandate it to come out with an action plan that can

a) Investigate the wealth creation formula of the ex Chief Justice of India K.G. Balakrishnan .

b) Bring back the black money and put the people behind the black money in Jail

c) Recover the loot of public money by people like Lalu , Maya & other leaders like Sharad Pawar etc.

d) Take action for CWG loot

e) Investigate on all massive loot cases happening in the nation

f) Frame up laws and set up a system say a CIA ( Central Corruption Investigating agency ), which can take suo moto action against any one ( Even the President of India ) , should the need arise without going through any approval , and this institution must report to the supreme body – Legislature every six months . This body should be adequately equipped with resources ( legal, financial and human resources ) to decisively act against corruption , and all top level appointments must be made by a body consisting of the P.M. , CJI , CVC & Opposition leader .

I also want you to ask CBI to investigate if Apollo Hospitals Group paid money to A.Raja. I was told by none other than the brother-in-law of A.Raja that Apollo had paid Rs.700.00 crore to Raja

I am also quite surprised that you have quoted that you will not quit the post of PM. It is the height of being shameless

Dr.Singh , history will paint you as Mohammaed-Bin-Tuglaq- A knowledgeable and wise king who caused lot of misery and pain to his people

If you do not shape up, wait for 2014, and the common man will throw the congress government and return results like Bihar

Rajendra Pratap Gupta

A Common Man

www.rajendragupta.wordpress.com

Posted in corruption, Economy & Recession, Rajendra Pratap Gupta, Uncategorized and tagged , , , , , , , , , , , , , | Leave a Comment
21 Jan 2011

Give us a Prime Minister – Manmohan Singh is a good professor but certainly not a PM material

Dear Mrs.Sonia Gandhi,

Since you are the President of Congress party , please look into this email

Over the last few years , we have tried to accept Dr.Manmohan Singh as our Prime Minister , but his performance as a congressman might be good , but he has failed completely as a Prime Minister . Congress has been blinded by Gandhi dynasty to such an extent that it has become poor in chosing the right people for the right job. May be that your and Rahul’s intellect is not upto the mark where you can choose competent people .

Over the years , congress government under your Presidency has become a government of faulty planning , false promises , blaming coalition for your failures and blame free investigations in most of the scams 

  •  This government has too many highly educated people, economists & NRI experts & advisors , but still the wisdom to understand the problems and give exact solutions is missing .
  •  Every time your Congressmen give a new date about controlling inflation , and every time they miss it . When the inflation is perpetually high , you blame coalition politics for it. So why do Indian’s pay a price for your forming the government ?Dissolve the government and go for fresh elections .
  • You are not able to judge the talent and most of your ministers are highly inefficient and corrupt , and we were hoping that Sharad Pawar would be removed so that he could focus on the ICC world cup in 2011( Which he will do anyways !!), but he seems to have hypnotized you !! He is still around !
  • Your party believes that , by revealing the names of those who stole the government money and deposited them in Swiss Banks , would pose a security risk ! So you are trying to tell India that, majority of your office bearers are Swiss account holders !! And that their getting caught would mean that the government would collapse !! Anyways , Julian Assange is on the way for dropping a few names , and I do hope that they are not from India & Congress !!
  • Industrial growth has been reduced to 2.7 % , lowest in the past 18 months . Would like to answer it why ? Rather , I must ask you if your people know at all why it happened ? 
  • People are very bullish about rural India, and every major FMCG , White good & vehicle manufacturing company is over- joyed with the growth coming from rural India in terms of the purchases being made . Let me take you through a very dangerous & disturbing development in rural India – I call it Rubble ( rural bubble ). I have been visiting rural India and talking with villagers . Here is what I want to tell you. Let’s take the example of Chavane village in Raigad. The village has changed dramatically in the past 3 years. It is great to see concrete (Pucca )houses with two wheelers parked in front of the houses. As you dig deeper , the facts reveal that people sold their land to MHADA for Rs.30,000.00 per acre for SEZ, and with sudden flow of funds, the thatched roof houses got converted into Concrete (Pucca ) houses, and two wheelers were also purchased along with some jewellery . Villagers had for the first time seen so much money, so instant money that came by selling land was used to make aspirational purchases , and it is over now , lands are gone as well !! What will the farmer do ? What will the farm labourers do ? How will they earn their living ? Let’s take another village 80 Kms from Nagpur , where Lanco plant is being built . Villagers have sold land for the rates as high as Rs. 25 lac per hectare . In India , average size of the land holding would be around 5-7 acres. Selling the entire land would fetch Indian farmers between Rs. 1.25 lac to 1.75 crore depending upon the size of the holding and the rate paid by the acquirer. On these lands , manufacturing plants would come up. We would never see greenery again. And farmers and their children who do not have jobs and land to do farming will be the next anti social elements or naxalites !! With land not available for agriculture , inflation would be higher than what it is today . Today farming is seen as a disdainful activity , and people want to do a job of Rs. 4000 but do not want to work in farming . Your congress government has kicked the ass of 100’s of millions of farmers over the past 60 years , and we are on a temporaray rural growth that I call as a rural bubble – Rubble !! India is headed for a major crises , & all because of the faulty policies of successive congress governments focused just on building billionaires , industries and encouraging FDI !! Get retail FDI in India , and see how the 12 million kirana stores and their families will starve to death . I have had discussions with the Parliamentary Committee of Commerce , Chairman in 2009 , Dr.Murli Manohar Joshi , and have given him in detail the reasons why we need to avoid FDI for the next 5 years at least !!
  • For price rise , last year ,Manmohan ji said that it was due to poor rains , in 2010 we had good rains and good crop , so why the price rise ? Kindly explain 
  • I was in Nagpur on 17th / 18th , and I read in one of the news papers about the fact stated by none other than Mr.Subramanian Swamy that, your bank balance was about Rs.10 crore some twenty years back , and now it is Rs.80,000.00 crore !! I think that this shows that inflation is very high at 10, Janpath . Please clarify if you actually made 60 % money in the 2G scam or this money came from abroad ? You are answerable 
  • Ironically , in the current times , we have a strong opposition but a weak ruling party . How can this government run ? If BJP comes down on its demand for JPC in budget session, Indian public will assume that it ‘settled’ the matter with congress and will never let them win again the seats that they are looking for, and if they keep their agitation on like the winter session , your government will have to go , and India will see a sign of relief !! 
  • Madam, congress might be your personal fiefdom , but not this country . You have created multiple power centers more powerful than the PM , like Rahul , NAC etc….You are the worst Congress President in the history of this country . But usual , we have a saying ‘Andhon main Kane Raja’ So you are the right person for the congress, which does not have any talent left !!
  • We have an outdated finance minister , unfit Agriculture minister , Hyper environment minister and an ineffective Person on the seat of the PM. All along, I have heard that we need 100 good people or 1000 good bureaucrats etc. But the fact is that , we just need one right person : at the seat of Prime Minister . One right person will change the future of this nation , and Manmohan certainly is a disaster at the cost of people . At this time , we cannot afford to have a lame duck as a Prime Minister of this youthful nation . Please give us a Prime Minister , we do not need a professor !! 
  • A suggestion for controlling food inflation : Please ask the government to start a daily free ( even if you charge the farmers for this service,  it is fine ) truck service from the remote villages to cities , where only farmers can come directly to the market and sell their products, rather than selling through agents , mandis or APMC . This will ensure that the person who adds maximum value and takes maximum risk for growing the produce ( farmer ) should also get the maximum profit . The profit at every point of sale post the harvestor ( farmer) should not cross 15 % , and this will bring down the prices to reasonable levels permanently . I read Subbarao stating that the government is desperate to control inflation and will raise the base rate , I heard Chidambram that government is clueless about the tools to control inflation , Sharad said that he cannot control what the farmers want to grow and so he cannot control food inflation . All these stupid statements come because you have bookish professors and so-called highly placed intellectuals and NRI & outdated advisors , who have no connection to ground reality . I do not understand how will raising the rates decrease inflation ? You have been doing this for the last two years and the result has been same – inflation has only increased . Do we need such economists who do not have answers to the common man’s problem ?
  • Do you never apply your brains about this fact that, the prices of the grains and vegetables are sky-high , still the farmers are committing suicides ? Does this not help you understand the problem and get an answer ? You all must be high level fools then !! 
  • In addition to high prices of food stuffs, by increasing the price of petrol again you have signaled the common man that ‘do not eat , do not go to work’

 Nitin Gadkari ji , please take up these matters with utmost seriousness , as congress is forcing the poor people to take to suicides by failing to control prices . If BJP does not take the matter seriously , the people of India will feel betrayed. Congress is fast becoming a failed party under you Sonia Gandhi ! Please either give us a PM or you and PM can go now ….. do not let this great country go to dogs !! This email is marked to Sharad, your dear son , FM , HM etc. to do some soul-searching and step down

Rajendra Pratap Gupta

www.rajendragupta.wordpress.com

Posted in BJP, Economy & Recession, Politics & Recession, Rajendra Pratap Gupta and tagged , , , , , , , , , , | Leave a Comment

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