ARE WE REALLY READY FOR ‘FDI’ IN RETAIL?

Recently, the cabinet has passed a resolution in regards to allow Foreign Direct Investment (FDI) in retail and civil aviation. Since India is a developing economy and it’s imperative to have FDI in retail in Indian market space, as it would give some strength to economy. But the fact is- is the India ready to accept it????

It is a well-known fact that every coin has two sides. Did the government go through the positivity as well as negativity of FDI? If yes, then why they haven’t communicated the ‘aam aadmi’ to whom they proclaim as their ‘messiah’. And if not, then why they have passed a resolution? Do they want to keep the mass in dark or want to hide their face in the backdrop of new economic reforms?  

The Congress-led UPA-2 government had published the pros of the policy in the nation’s topmost dailies, before passing the resolution. It is beyond my understanding that why the government had taken this step – when everyone knows that the policy formulation is a prerogative of the concerned government.

The central government has given their versions that it would boost up the economy and accelerate the GDP growth. More employment opportunities would be created and a sense of security would be developed in the market to woo the investors across the globe. I don’t understand that what kind of employment would be created after arrival of Foreign MNCs. What will happen to all those small traders/retailers and vendors who are the bread & butter earners for their respective family?

The government has said that retail chain stores like wall-mart and Carrefour will be opened in big cities. Everyone knows that the influxes of unskilled labors are more in bigger cities. They come in bigger cities and engaged themselves in self operated business, such as selling vegetables at roadsides, opening general stores and etc. Don’t you think their business would be shut down, if such big giants will enter into such business operations?

As it had been expressed that these giants will provide products at lower cost, are the small retailers would be able to compete with these giants or sustain it selves? Everyone would like to go in those stores, where they get goods and services at low cost with all facilities, such as fully furnished A/C stores, delivery of goods facility and etc. since we all know that the MNCs are capitally very strong and they will not allow to prop up any new business entity. Then why our government is allowing such kind of investment in our country?

We got to hear from a dignitary of the Indian government that with the allowance of FDI in retail, the farmers will get better prices for their products and the consumers will get goods at cheaper rates. But my concern is for small and medium traders who constitutes major proportionate of Indian population. What will happen to them?

The government has said that these giants would operate in big cities and in areas where the population is more than 1 lakh. I would like to ask the Prime Minister and his ministers that most of the unskilled labors have come in big cities from small towns and have engaged themselves in such kind of business, then why such remarks are being made that it would be operated in big cities only. It clearly shows that the government has lost the ground reality.

It’s a proven fact that the stores at scattered places are better than the consolidated one. At scattered stores you will get an option and will do bargaining too, whereas in consolidated stores the persistence of monopoly could be easily visible. In a prevailing system even uneducated individual can also sustain his life but it would be tougher after entry of these giants.

Conclusively, it can be easily understood that the entry of FDI in retail is not a viable alternative. It can be strengthen if the lead banks of the area play an effective role. The government should strengthen the Public Distribution System (PDS), so that the goods could be saved from wastage.

Last but not least, it’s a conspiracy to make India a slave country, once again. The public should oppose it as much as they can.