The situation is as serious now, since as an ally in the ruling United Progressive Alliance, or UPA, government, her withdrawal from the alliance could mean the end of the present government and, consequently, of all economic reform.
Although the deadline expired Tuesday evening with Banerjee saying she was withdrawing her support of the UPA, she is still playing a negotiating card with the resignations to be handed in only on Friday, leaving a window for negotiation.
“Those already here are a worried lot,” said Arvind Singhal, chairman of Technopak Advisors of foreign retailers already established in India and eager for a more open market.
The government is standing firm, for fear of appearing weak, and also because of the economic impact that FDI would have.
“The decision to allow 51 percent FDI in multibrand retail will result in investment of $2.5 billion to $3 billion in the retail sector over the next five years,” a report by Crisil Research noted Tuesday. Others have estimated the investment will be four times that amount.
Crisil also predicted that organized retail would increase from the present 7 percent of the market to 10 percent by 2016-17.
Each Indian state will have the right to decide whether to accept FDI in retail, with 10 supporting it so far. But the limitation increases the complexity of the situation for overseas retailers operating in India.
“It would be a limiting factor for chains while taking crucial decisions,” said Singhal.
A report from J.P. Morgan on the new decision noted, “Given the state level discretion involved here, the company may have to consider separate alliances or partnership structures.”
Today, businesses throughout the country are expected to take part in a bandh, or a roll down of retail and business shutters that has been called by the opposing political parties. This is in protest of the government’s FDI decision but also against the increase in the price of diesel by five rupees and a cap of six subsidized propane-gas cylinders per family each year, which are used for cooking.
Supermodel @helenachristensen teamed up with longtime friend and designer @camillastaerk on a joint @paredeyewear collaboration. The lineup features three styles and 11 offerings, all of which embody a vintage feel. Get all the details on how they celebrated the collab on WWD.com. #wwdaccessories #wwdeye (📷: @slovekinpics)
“It’s a hard industry to keep motivated, as well, so finding different subjects and people is what makes it worth it – when you’re like, oh, I’ve met great people, I feel like I’ve done something good, and I feel proud of having done this,” said French actress Stacy Martin on being grateful for the variety of roles she’s take on. Read @ktauer’s full interview with Martin on her her latest film “Godard Mon Amour.” #wwdeye (📷: @danieldorsa)
After showing in front of the Eiffel Tower for his last two women’s ready-to-wear collection, it looks like @anthonyvaccarello may be heading to the Big Apple. Sources say the designer will stage his next @ysl show in NYC on June 6. Get all the details on WWD.com. #wwdnews #wwdfashion (📷: @aitorrosasphoto)
EXCLUSIVE: Two and half months after John Targon, cofounder and codesigner of Baja East, was hired as creative director of the contemporary division at Marc Jacobs, he has left the company, WWD has learned. Marc Jacobs International, which is owned by LVMH Moët Hennessy Louis Vuitton, confirmed Targon’s departure in a statement: “John Targon is a talented designer and we appreciate the work he has done here. Ultimately working together did not make sense for the brand and we wish him the best.” Read the story by @jessiredale, link in bio. #wwdnews
@theluxurycollection is officially launching a collection, tapping Sofia Sanchez de Betak for the capsule. Over 30 styles will be featured in the Chufy x The Luxury Collection, debuting next month at Bergdorf Goodman, The Webster, FiveStory and more. De Betak, known as “@chufy,” drew inspiration for the collection from her trips to Japan in the past year #wwdfashion
@lhd, founder and CEO of @thewebster, has teamed up with @lebonmarcherivegauche for the European launch of her ready-to-wear line, LHD. The launch will come with an exclusive pop-up opening today that’s set to run through May 20. Located on the second floor, it carries her debut Miami-themed resort collection, launched in November as see-now-buy-now. #wwdfashion