Category Archives: Politics

Will Indian Retailers Allow FDI?

There seems to be no end to the controversy surrounding FDI in retail for the Indian Government as mass protests across all the states are not soothing out. While parliament is not reaching at any consensus at all on the same, there are over 6,000 traders in Shimla who have closed their shops to oppose the decision.

Adding fuel to the fire in the joint opposition by Bharatiya Janata Party (BJP) in the state and Communist Party of India-Marxist (CPI-M), which are hell bent to jolt the government. As of now, no reports of violence have been received.

“We have got very good response from across the country and 5 crore traders will not open their shops tomorrow. They will hold protest in their own markets. We will not hold demonstrations in front of foreign stores”, said Praveen Khandelwal, Secretary-General of the Confederation of All India Traders association. Backed by support from other states, there seems to be no early breather for the government.

Apparently, there are confirmed reports that several Bharti-Walmart stores would be shut down on Thursday to avoid any violence. Even security has been escalated at stores of World’s second largest retailer Carrefour in Delhi and Jaipur as a part of precautionary measures. Meanwhile, such similar shutter down operation was seen in Karnataka against the government’s decision to allow 51% the FDI in retail.

Nonetheless, the government has assured that there decision in favor of public interest, there are lingering fears in the minds of retailers that there would be threat to their presence in case such malls are being set up in their states.

There are countries like US where such decisions have affected many small stores, and that’s what has made retailers to put up strong opposition for the entry of foreign players in the retail market. While government would be putting up their best efforts, it would be interesting to see how they would seam through the fierce attack of retailers and opposition parties.

Surging Fuel Duty Distressing the Pockets of Poor

Office for National Statistics (ONS) has revealed figures highlighting that in the past ten year, there have been fall in the revenue of the Government coming from petrol sales. According to the figures, the shares of government in the sales as fallen to 62% which was at 81%, ten years back.

The ONS has reported that the government has witnessed a fall in its hares as it didn’t hike the petrol prices in accordance with hikes in petrol duty. No matter what reasons are being cited by the ONS for fall in the shears of the government, there is no doubt that the prices of petrol has touch the sky, this years.

The fuel costs about 75p per liter, while the cost of fuel duty and VAT stands for 57.95p and 57.95p respectively. It is believed that if the VAT is removed then the prices of fuel could fall to 53p.

It has come to light that a large number of the UK families are spending £677 on fuel or petrol duty in 2009-2010. However, ten years back, the residents were paying just £365 for petrol duty. According to the statistics, lower income group families are spending more than their income.

About 20% of the lower income group households pay 3.5% of their disposable income of petrol duty while 20% of rich are paying just 1.8% of their income. It means that the hike in petrol duty is directly impacting the lower income groups.

Chancellor George Osborne has received appeals from many organizations in regard of bringing change in the fuel duty system. As the fuel duty is surging dramatically, there is high possibly of poor motorist of losing mobility. However, it has been reported that the government is planning to raise petrol duty from next year’s budget.