Budget 2008-2009-Excellent Job- Just the right stimulus!!

Dear All,

Government of India recently provided for USD 13.33 Billion loan waver to marginal/small time Indian farmers in its latest 2008-2009 budget. What a bold move to be taken up by any government. I truly appreciate what GOI has done in this budget- a complete plethora of killer goodies for under performing ass clowns. Whatsoever the case may be, personally I think this budget is well settled and has mass appeal, good enough to be called as a 'politically correct' budget. If you go in for critical evaluation of this budget, there are allot many things that could be looked upon. Sectors like healthcare, infrastructure, automobile, power have really been taken up well into consideration with many sops, policy changes and taxation rebates coming their way. However, major GDP contributors like IT, Telecom and Textile sectors have not seen the 'dew fading' with limited breakthrough coming their way. I say this because we very well know that International market is really making things difficult for Indian exporters. :-). Adding more buoyancy to Indian growth story and the budget lines, with changes in individual income tax slabs, enough room has been left for Indian consumer durables and FMCG sectors to re-establish a shining shadow of their own selves in this financial year as higher IT slabs shall bring enough money for consumers to spend on consumer products, gizmos and stuff. The agriculture sector is also not far behind with major duty cuts coming its way so as to achieve an annualized growth target of 4%. These policy changes are also going to go good with agri-companies dealing in micro irrigation projects (Jain Irrigation). seeding and crop development businesses (Monsanto) companies and cold chain infrastructure development companies. On the whole, a great budget. exactly for masses. In fact, if I was there on the FM's seat, I would have walked the same road with elections hanging round the corner. I think even the Indian stock market players should retain a polarized approach on this kind of budget as they have come across an increase in short term capital gain taxes. The FM has done the right thing as it brings greater depth for genuine long term investors and curbs speculation. Guys, hats off to Shri Palaniappan Chidambaram (Indian Finance Minister)...an excellent job.

USD325 BILLION INDIAN RETAIL MARKET; NOT AN EASY PIE FOR WORLD PLAYERS

What was started by a few players few years back has today become an obsession for many. Global retail formats/ corporations from the organized markets are heading for Asian economic titans like China, South Korea, Taiwan, Philippines, Malaysia and none other then our very own India.

Although the fundamental for retail trade goes back to the age-old Brick & Mortar format of the Imperial system, the market dynamics have taken their own course with introduction of world class value-services and experiences along with the core (expected) product. This 21st century comes up with greater challenges (supplier understanding) and improved narrations (consumer understanding). This in-tern brings in wide spectrum formats for selling goods & services at a macro level within the modern global markets.

INDIA, the land of opportunity, this is what global retail players like WALMART(USA), JC PENNY(USA), CARREFOUR(France), TARGET(USA), DAIEI(Japan), KROGER(Germany), METROAG(Germany), SEARS & TESCO(USA) believe. India’s billion+ market is witnessing its own indigenous retail revolution.

Years of India’s poor infrastructure, un-organized retail formats are now demanding their due diligence. Indian consumers expect the right strategy, critical to figure out and serve their buoyant 21st century needs (essence & lifestyle).

But is it what Indian retail story is all about. Infact, read this; 1) Small traders declare war on big retail in Mumbai, 2) Current market not ideal for retail investors (Source-economic times), 3) Centre plays hard for big retail (New Delhi), 4) IFA plans farmers’ cooperation to fight organized retail (Source-economic times).

The above paragraphs describe two facets of the same subject (Indian Retail Market). When we as Indians realize the significance of world as a civilized society and India as an emerging market, we (as a mass) are in no mood to substitute convenient kiryana stores with contemporary super stores and hyper markets. India as a nation (majority consumer) still exhibits ‘de Minimis’ as the de facto principle for acknowledging ‘product alone’ as a value purchase.

Never the less, situation will change as there is no excuse to it. India will rise to the world markets, world styles of living and shall lead life, the way ‘world’ does. Global retail giants will find the way through and will get their share of pie as India rises to the west. But, in case India doesn’t open its’ doors, India’s growth will be in trouble restricting employment & revenue opportunities.

Finally, India needs globalization as a philosophy and de-shackling of controls and trade barriers and a practice to make its market truly competitive and consumer inclined.
Inspiration: Mr. Sushant Munjal