India FDI Watch is building awareness and facilitating grassroots action to prevent the take-over of India’s retail sector by corporations. We are building Joint Action Committees (JAC) led by those who will be most affected, mainly; trade associations, unions, hawkers organizations, farmers groups and small scale industries. India FDI Watch is an affiliate of ACORN International and works hand in hand with ACORN India in organizing lower wage informal workers and communities in Mumbai, Delhi, and Bengaluru.
A National Steering Committee has formed in Delhi, of which India FDI Watch is a facilitator and member. The National Steering Committee has come under the banner Vyapaar Rozgaar Bachao Andolan. Similarly in Mumbai, India FDI Watch is a chair and member of the Vyapaar Rozgaar Suraksha Kriti Samiti. In Bangalore, India FDI Watch is a key member and coordinator of the Karnataka Joint Acton Committee Against Corporate Retail.
The National Steering Committee is working with partners across the country and the Joint Action Committees, based in Mumbai and Bangalore to facilitate broad-based action at the local and national level and to develop policy demands that will ensure the protection or enhancement of those people who stand to be most impacted.
India FDI Watch has been key in coordinating and organizing national actions and rallies organized around to save local retail operations.
What is FDI?
Foreign direct investment is the acquisition of assets in a country by foreign entities for the purpose of control. FDI is ownership of at least 10% of a business.
According to the Ministry of Commerce & Industry, “FDI is freely allowed in all sectors including the services sector, except a few sectors where the existing and notified sectoral policy does not permit FDI beyond a ceiling. FDI for virtually all items/activities can be brought in through the Automatic Route under powers delegated to the Reserve Bank of India (RBI), and for the remaining items/activities through Government approval. Government approvals are accorded on the recommendation of the Foreign Investment Promotion Board (FIPB).”
Currently, foreign companies are only allowed to own 10% of a business in the retail sector. Prime Minister Manmohan Singh is trying to convince his coalition partners to open up FDI along the lines of what is allowed in other industries. FDI limits for other sectors are as follows:
- Banking – 74%
- Non-banking financial companies (stock broking, credit cards, financial consulting, etc.) – 100%
- Insurance – 26%
- Telecommunications – 74%
- Private petrol refining – 100%
- Construction development – 100%
- Coal & lignite – 74%
- Trading – 51%
- Electricity – 100%
- Pharmaceuticals – 100%
- Transportation infrastructure – 100 %
- Tourism – 100%
- Mining – 74%
- Advertising – 100%
- Airports – 74%
- Films – 100%
- Domestic airlines – 49%
- Mass transit – 100%
- Pollution control – 100%
- Print media – 26% for newspapers and current events, 100 % for scientific and technical periodicals
What is Wal-Mart?
History: India FiDi Watch
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