PRESENTATION BY

DERATION OF ALL INDIA TRADERS NE

PRESIDENT
NAG VIDARBHA CHAMBER OF COMMERCE, NAGPUR

THINGS TO
REMEMBER
Before we go ahead, we should keep certain basic facts in our
mind.
We are a country with huge population out of which majority are
unprivileged and Below Poverty line.
We are people with tradition, culture and ethics.
In our country it is very difficult to get alternate employment.
Our survival is because of our collective strength.
The Govt. policies have been anti growth oriented for traders.
The traders voice is not heard by decision makers.
In fact traders have no representation in Govt.
The decision makers do not ever hear him on policy matters
affecting his trade.

Presented By Mr. B.C.Bhartia,Nagpur.

PREAMBLE
WE, THE PEOPLE OF INDIA, having solemnly resolved to
constitute India into a
SOVEREIGN SOCIALIST SECULAR
DEMOCRATIC REPUBLIC and to secure to all its citizens :
JUSTICE, social, economic and political;
LIBERTY of thought, expression, belief, faith and worship;
EQUILITY of status and of opportunity; and to promote among
them all
FRATERNITY assuring the dignity of the individual and the unity
and integrity of the Nation;

Presented By Mr. B.C.Bhartia,Nagpur.

INDIA UNDER MNCs REGIME :

WILL THE PREAMBLE BE RECONSTITUTED.
WE THE DICTATORS TO INDIA having solemnly resolved to
Reconstitute India into a SLAVERY CASTE BASED UNSECULAR
DIRECTED DEMOCRATIC REPUBLIC and to ENSURE to all its citizens
that :
JUSTICE, social, economical and political is discriminatory
LIBERTY of though, expression, belief, faith and worship is permitted
as long as it is in line with MNC & World Bank thought to make world a
single religion, belief in single god and faith in them as single
economic power.
EQUALITY of status and
citizens.

opportunity is not applicable to local

AND TO PROMOTE AMONG THEM ALL INDIVIDUALITY, HATRED FOR

OTHER CASTE AND SURRENDER OF THE NATION TO THE LONE
ECONOMIC POWER ON EARTH.
Presented By Mr. B.C.Bhartia,Nagpur.

PRESENT CONDITION OF TRADERS

Fringe Benefit Tax

VAT
INEFFICIENT
LABOURS

LICENCES & PERMITS

INDUSTRIAL DISPUTE ACT
SHOP & ESTABLISHMENT ACT
COSUMER PROTECTION ACT
WEIGHT & MEASUREMENT ACT
PACKAGING ACT
PREVENTION OF FOOD ADULTRATION ACT

PREVENTION OF BLOCK MARKETING ACT

ANTI HOARDING & PROFEELING ACT
MONEY LENDING ACT
PRODEND FUND ACT
MINIMUM WAGES ACT
ESI ACT
GRATUITY ACT
BONUS ACT

ENTRY TAX
SERVICE TAX

FDI in Retail Trade

ANTI SOCAL ELEMENTS

OCTROI
WATER TAX
CENTRAL
EXCISE

POLITICIAL INTERFERANCE
PURCHASE TAX
POOR MARKET
CONDITION

INSPECTOR RAJ

INCOME TAX

SALES TAX
POWER PROBLEM

Cash Transaction Tax

&
Quarterly C Form

STAMP DUTY
WELTH TAX
HIGH BANK
CHARGES

PROFESSIONAL TAX

New Naka Complex

Presented By Mr. B.C.Bhartia,Nagpur.

ESSENTIAL COMMODITIES ACT

Aviation

Information
Technology

Telecom
Infrastructure

Retail Traders

Banking
Insurance
Pharma

Mining
Steel
Professional
Education

Presented By Mr. B.C.Bhartia,Nagpur.

TRADE :
Retail RETAIL
trade is worlds oldest business.

BACKBONE OF
Retail ECONOMY
trade consists of sale of goods & services to
consumers
for their personal, family or household use.

Based on turnover and volume, retail trade is worlds

biggest
economic activity.
In the year 2000, world turnover in retail trade is
estimated
around Rs. 3,10,20,000 crores.
In India by investing nominal Capital a person can start
retail
business.
Presented By Mr. B.C.Bhartia,Nagpur.

HISTORIC CONTRIBUTION BY
TRADERS :
During Pre-independence days the traders have helped
the leaders in all forms like man power and money.
In all social activities & establishment
of schools,
colleges, hospitals mandir, masjid
etc. traders have
contributed.
Round the year 24 hours a day, traders have made all
the goods required by customer available to them
During the days of acute shortages, the traders have
some how managed to arrange goods for its customers.
Relationship of Indian traders and customers is much
more than mere business
Indian traders have always seen customer satisfaction
above personal profit.

Presented By Mr. B.C.Bhartia,Nagpur.

SUPPORT AND
HELP
TO GOVERNMENT
Traders are self employed and give employment to entire family and others.
Traders give employment to that neglected section of society who do not get
employment any where.
Traders take care of entire family of his employees.
All direct and indirect taxes levied by Central, State and local govt. are
deposited by trader in Govt. treasury without any charges or commission
from Govt.
During famine, floods, earthquakes tsunami and other natural calamities, the
traders have always come out openly to extend full help to Govt.

Presented By Mr. B.C.Bhartia,Nagpur.

TRADERS BEING IGNORED

BY GOVEREMENT
In Order to gain political mileage, traders have been termed
by objectionable words.
After independence one after another anti trade, anti trader
laws have been made.
Traders have been made slaves under Inspector Raj.
Time & again new legislatures are being imported. Small
Traders have been put under heavy burden of book
keeping, taxation and compliances under various laws.
In the name of development and road widening the shops
are being demolished only to give passage to hawkers and
footpath shopkeepers to establish their business.
Local Govt. failed to build new markets. old traditional
markets in different localities are being removed to make
way for Big stores to get customers.
Presented By Mr. B.C.Bhartia,Nagpur.

CONTRIBUTION OF
TRADERS
IN ECONOMY
In comparison to world, India has largest number of retail
traders.
In our country there are about 1,25,00,000 retail out lets.
Retail trade contributes about 10% - 11% of our countrys
GDP.
Total turnover of retail sector is about Rs. 8,75,000/- crores.
After agriculture, Retail trade provides employment to
maximum number of persons.
1.25 crore shops are providing employment to about 4 crore
people.
In a study conducted by Reserve Bank of India, India Retail
Traders charge less margin.

Presented By Mr. B.C.Bhartia,Nagpur.

FOREIGNERS ARE MORE

DEARER THAN INDIANS
Indian traders, Businessman and Industrialists have established their
leadership across the world.
India is emerging as a big economic power.
Our country is progressing in all economic fields.
We have lagged behind in infrastructure, irrigation power etc. i.e.
such sectors which were under control / monopoly of Govt. We could
not grow to full potential in such sectors.
These infrastructure sectors require huge investment with larger
gestation period. Hence special emphasis has to be given to these
section.
It is unfortunate that instead of focusing development of such core
areas the govt. want to hand over our established retail trade to
foreigners.
It is surprising that suddenly govt. feels that our traders are
incompetent to serve the people or handle retail shops OR in disguise
of Foreign Direct Investment
our retail trade is being sold to
foreigners.
Presented By Mr. B.C.Bhartia,Nagpur.

WHAT WAS THE CRITERIA

FOR FDI

Some time in 1991-92, the then Finance Minister and

present Prime Minister Dr. Manmohan Singhji
referred to certain criteria for allowing Foreign Direct
Investment. These were :

1.

Establishment of basic industries requiring huge

capital and advanced sophisticated technology.

2.

Infrastructure
projects like electricity generation
road building etc.

3.

Projects which would generate employment

Presented By Mr. B.C.Bhartia,Nagpur.

WILL THIS HAPPEN

WITH FDI
IN RETAIL TRADE
Throughout the world it is known fact that huge investment
is not required to open a retail shop.
Investment is required to build infrastructure for shop,
sophisticated technology is not required in retail trade.
Small Retail shops provide more employment then large
chain of Retail stores.
There is no gestation period. Hence business starts from day
one.
Instead of developing under developed areas these stores
capture prime commercial property in cities.

Presented By Mr. B.C.Bhartia,Nagpur.

WHAT DO
FOREIGN / MULTINATIONAL
COMPANIES DO
In 60s Big foreign houses entered in retail trade in other parts of
world.
This is against our culture of One family One shop.
These big companies, in order to crush competitors sell goods
cheap. Later on effective prices of goods are increased.
These companies buy material from International market. Hence
local producers are put to loss
These companies buy in bulk quantities directly
manufacturers. The intermediaries loose business.

from

After conquering the markets of Europe and America, these

companies have now entered Asian markets.
After establishing their footings in Thailand, Indonesia, China,
Japan, Philippines, etc in Asia, these companies are now targeting
India.

Presented By Mr. B.C.Bhartia,Nagpur.

EMPLOYMENT GENERATION
UNDER EXISTING SYSTEM
FARM LABOURS
HAMALS
DALALS
BROKERS
TRANSPORTERS
TEA SHOP OWNERS
HOTELS
DHABAS
SHOP KEEPERS

AFTER M.N.C. TAKE OVER

ALL WORKS IN FARM BY MACHINE UNDER CORPORATE FARMING
AUTOMATIC TRANSFER AND PACKING BY MACHINES.
SALE TO CUSTOMERS THROUGH CHAIN OF DEPARTMENTAL STORES.
LARGE NUMBER OF SELF EMPLOYED TO BECOME UNEMPLOYED.
Presented By Mr. B.C.Bhartia,Nagpur.

WHAT WILL HAPPEN TO RETAIL

TRADE

These companies open chain of shops. With a shop in each area the
retail small shopkeepers will be put to heavy loss
Slowly the local shops will start closing down.
These shops will capture the trade.
In countries where they have established their market share is
Name of Country % of Market Share
America
80%
England
80%
Western Europe
70%
Brazil
40%
Thailand
40%
Korea
35%
China
20%
Malaysia
20%
India
3%
Remember example of BATA in shoe business.
Imagine Roadside DHABAs after RELIANCE FOOD CHAIN Starts
working.
Cold drink business in India.
Presented By Mr. B.C.Bhartia,Nagpur.

TO
LOCAL RETAIL
TRADE
No of Retail outlets Between 1981-99 in United Kingdom
came down from 56862 to 25800.
Between 1970-80 in Europe about 4 lakhs Retail shops
were closed.
Competition shall be limited to Big Retail Houses
In the year 2000 Five Big Fast food companies captured
following percent market share :
Country
Norway
Swezerland
Sweden
UK
64
Portugal

Presented By Mr. B.C.Bhartia,Nagpur.

% Share
99
88
94
57

WHAT HAPPENED IN
THAILAND
In price war traditional shop keepers are facing problem of
survival. Many small shop keepers have closed down their
shops.
Big companies have seen growth of 40%
There was adverse impact on 60000 small shopkeepers.
A small shopkeeper fired rocket in Big shop & committed
suicide," frustration.
The Prime Minister of Thailand agreed that there was
adverse impact on retail trade.
The Govt. which had opened its door for FDI in retail trade
with big bang had to provide financial assistance to retail
traders by establishing a special fund.

Presented By Mr. B.C.Bhartia,Nagpur.

WHAT HAPPENED IN CHINA

There is a race to capture more & more space for retail
trade.
There is allegation of flouting the norms on these stores.
There is anger against these companies amongst general
public.
Media is also reporting how traditional shops have been
thrown out.
The suppliers and manufactures are also facing problem.
These are closing down.

Presented By Mr. B.C.Bhartia,Nagpur.

WHAT HAPPENED IN
OTHER
ASIAN COUNTRIES
Other countries are also unhappy.
started taking precautions.

Many countries have

Indonesia and Malaysia have established zones within

which these foreigners can do trade.
In Japan Big companies have to discuss with small traders.
There is Zoning system also. Hence these companies have
to establish their shops outside city limits.
There is wide discontent amongst shopkeepers & people in
the countries to which these store belong.
The city counselor of California & Chicago have refused to
allow opening of new shops to WALMART.
These shops are required to take permission in countries
like France, Germany and America.

Presented By Mr. B.C.Bhartia,Nagpur.

NOW ITS TURN OF

INDIA
The tough stand taken till recently by Central Govt., Foreign Retail
Traders could not enter India.
It is unfortunate that Central Cabinet has given approval to FDI in
Retail Trade.
Shift of Major retail trade to these big companies will render small
traders & their employees unemployed.
Many companies with the help of contract farming will sell goods
produced in farms directly from their chain of stores.
After establishing control over purchases & sale these companies will
start dictating.
These companies will keep only graduates and above in their
employment. There will be no scope for employment to under
graduate and others.
In the event of non receipt of payment of supplies, it becomes
impossible to reach owners.

Presented By Mr. B.C.Bhartia,Nagpur.

M.N.C. REGIME
CONTRACT FARMING

COLLECTION OF
AGRICALTURE PRODUCTS

TO OWN FACTORY

TO CUSTOMER

Presented By Mr. B.C.Bhartia,Nagpur.

TO OWN DEPT. STORE

REQUEST STOP
FDI IN
If Domestic Retail Trade is allowed by Big MNCs etc., there
RETAIL
will be Large
Scale TRADE
Unemployment.
A new class of unemployed called Unemployed Traders
will join the existing force of unemployed persons.
These companies will sell internationally procured products.
Domestic Industry will suffer.
Everybody knows how Big Fish eats away small fishes.
Keeping the experience of other countries in mind, Govt.
should not take any such decision for which the whole
country and coming generation will have to suffer.

Presented By Mr. B.C.Bhartia,Nagpur.

SELF EMPLOYMENT IN
INDIA

India has huge force of unemployed persons.

Govt. has failed to generate need based
employment..
Majority of people in India are self employed.
The Major area of self employment is Agriculture
and Retail Trade .
The farmers problems were not addressed timely.
They are committing suicide.
WHAT is the future of Indian Traders in India?
WILL next generation pardon us?

Presented By Mr. B.C.Bhartia,Nagpur.

WHAT SHOULD GOVT.

DO
Govt. should identify the weakness of present
retail trade.
Govt. should specify the areas where customers
are not being served properly.
Govt. should specify what it expects from retail
trade that is not being met presently.
Govt. should publicise the sector / persons who
have demanded FDI in Retail Trade.
Govt. should come out with white paper on FDI
in Retail Trade specifying the picture after 25
years and 50 years.

Presented By Mr. B.C.Bhartia,Nagpur.

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Presented By Mr. B.C.Bhartia,Nagpur.

INDIA : MY
COUNTRY
DONT SEE INDIA AS POPULATION OF ONE HUNDRED CRORE
MOUTHS TO FEED.
SEE IT AS A MARKET OF ONE HUNDRED CRORE CONSUMERS
WITH
TWO HUNDRED CRORE EYES TO WATCH YOUR PRODUCTS AND
TWO HUINDRED CRORES HANDS TO BUY YOUR PRODUCTS.
WORLDS LARGEST EMERGING RETAIL MARKET : WHO WILL
CONQUOR IT : WE OR THEY?
DO NOT MAKE MY GOVEREMENT AS,
GOVEREMENT BY MNC,
GOVEREMENT OF MNC AND
GOVEREMENT FOR MNCS
Presented By Mr. B.C.Bhartia,Nagpur.