Obama's "protectionist tone" on outsourcing has created a flutter in the Indian IT industry. The BPO industry's survival depends (over 70% of revenues)totally on the American policies. The developed countries advocate free trade policies when everything seems hunky-dory. See now, when the unemployment problem cropped-up in their backyard they want to stop outsourcing. Japan had heavy import barriers until their automobile industry became big enough to dictate terms over other(read Detroit) countries.
Indian policies has stopped foreign direct investment in retailing. Metro Cash & Carry, a subsidiary of a German company of the same name, started its business as a whole-saler who is only permitted to sell to the re-sellers. From the day since it started it's business it always looked wary. The APMC traders had to protest hard to make them stop selling the APMC listed products. The open secret that any consumer can buy things from their outlets exposes their disrespect to the law of the land they trade in.
But now, Metro is trying to flex it's muscles in semi-urban India. It has appointed stockists at Kolara, Bangarapete and couple of other towns to market the products they deal( mutton to maida, Vaseline to vodka, sauce to switches) with. Knowing its artful way of doing business it'll certainly dislocate the existing business system of manufacturer-distributor-retailer-consumer. This system could be the second largest (next to agriculture) employer in India. The impact of Obama's policies can be measured through the dipping sensex, but the loss due to the Metro goes unnoticed. The Metro will sell all company products until they gain a foothold in the market and eventually promote their in-house brands killing other company brands.
Chintamani Distributors Association & Chintamani Merchants Association will organise a rally to protest against Metro cash & carry from appointing a stockist in Chintamani, to awaken the policy makers to take necessary action and to alert all the citizens from the trade invaders on 18th of August at 10 am from Azad Chowka.
ಬಿಡಬೇಡಿ ದಾರಿ, ಅದು ಮೆಟ್ರೋ ಹೆಮ್ಮಾರಿ !
1 comment:
No wonder the sensex is dipping....I wish all the success to the rally.
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