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Articles: TP Features | | chillara vyApArulaku gaDDukAlaM | |
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| What a good explanation by VIJAY VARDHINENI. Whatever he said, that is absolutely true. Those who benefit are producers (farmers and manufacturers)and consumers. The losers are brokers. Government also will get lot of money through taxes.
But the worrying factor is, will villagers be able to go those stores or not?
Posted by: Mr. Srinivas Chowdhary At: 16, Jan 2007 8:18:59 AM IST
I completely disagree with Mr. Sai Prasad.
I am glad that big players in the retail industry are now very bullish about the prospectus in India.
Competition between the big players always lead to price wars, which always benefit the end consumers. We see these benefits in Aviation, Telecommunications, Banking etc. If stores like walmart are going to charge more compared to the local stores no one is going to buy their goods from them. In case if Walmart is going to charge more, How can we say that Reliance or Tata will follow them (Look at the price wars in Aviation Sector).
Providing jobs should not be the only objective. More middleman between the Manufactures and the end consumer will always create more number of jobs. This is not how we should create more jobs. Objective should be to increase the number of jobs by improving the efficiency. This can be only achieved through big stores. We know that due to the price war in Aviation, Telecom prices came down drastically. Eveyone is enjoying these benefits. This resulted in more jobs in Aviation (Pilots, Flight Attendants, Traffic Controllers, Mechanics, more aviation schools etc). In Telecommunications, due to these price wars, many who were operating STD booths may be facing problems But, lot more people got jobs (as Technicians, Sales people etc).
Big stores provide the following advantages:
1) Minimize tax evasion - As we have so many small players, it is very difficult for IRS to monitor evey one of them. Big companies must deduct the taxes for all of their employees. They have to collect the sales tax properly. They can not manipulate sales in each and every store (like some small stores do).
2) Minimize black money circulation - Chances are that big stores accept Credit/Debit cards and checks. This encourages everyone to use these methods. Small stores may not report their cash transactions. Big stores must report all their transactions. Big stores pay rent for their real estate facilities through bank. This ensures that the owner of the real estate facility pay proper taxes to the government.
3) Create more indirect jobs - Big stores bring down the prices. This create more savings to the customers, more jobs to the producers etc.
4) Better Quality - Big stores may charge more, but they always tend to maintain the quality. This is because they want to be in the business for the long haul. They are not going to look at the short term profits and damage their brand image. I read many news articles when local stores adulterate the goods to gain short term profit.
5) Price Wars - Big companies always want to make money. If they can squeeze 100 Rupees for a liter of milk, they will do it. No one is going to deny that. They are in the business for making money. They can charge 100 Rupees for a liter of milk only if they have the monopoly (like monopoly enjoyed by Department of Telecommunicatins about 10 years ago). If government can ensure that there is enough competition between the big playes, they are going to engage in price wars. This is going to ultimately help the end consumers.
I feel that our government is very slow in implementing the reforms. I understand their difficulties. I am glad that they are making slow and steady progress. Our government is doing an excellent job by allowing the retail majors in our country.
To make our economy a great economy, we have to open it first and accept the competition. We need to show the world that we are not afraid of any competition. I am very confident that opening retail sector is going to create lot more direct/indirect jobs in the country in the long run. This is a step in the right direction to make India a great economy in the world.
Regards
Vijay
Posted by: Mr. Vijay Vardhineni At: 16, Jan 2007 3:15:21 AM IST
chaala manchi vyaasam. inni kOTla mandi chillara vyaapaarulaki upaadi debba tinTundanEdi pachchi nijam. prabhutvamu, ee rangam lOki Walmart lAnTi samsthalani aDDukOvaali. lEkapOtE chaalaa mandi upaadi kOlpOvAlsi vastundi. dAniki prabhutvamE baadhyata vahinchaalsi unTundi.
Posted by: Mr. Ramulaiah Ramulaiah At: 15, Jan 2007 12:25:22 PM IST
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