FDI IN INDIA

Congress led UPA government’s decision to allow FDI in retail has kicked a storm across the country. After facing an impasse in the parliament, nearly 5 crore traders across the length and breadth of the country have downed their shutters to register their protest against the move. Even as the Prime Minister Manmohan Singh has said that 51% FDI in multi-brand retail will benefit the trading community as a whole, reiterating his government’s decision that there would be no roll-back on the decision.


Traders across the country are holding the protests in various markets and are planning to hold a dharna at the Jantar Mantar. Opposition BJP also joined the protests and organised marches and its activists burnt the effigies of Prime Minister Manmohan .The bandh call also received overwhelming support from various trade bodies in other states. Besides the BJP, several allies of the UPA are against the FDI move.

Through this decision international chains such as Wal-Mart, Tesco and Carrefour will enter Indian market and set up their supply chains. Though UPA believes that it will bring infrastructure and jobs to India, opposition parties and trade unions apprehend that it will only create joblessness, at least in unorganized sector. Many people argue that the decision has been taken only to appease corporate giants.

The showdown with the opposition parties is somewhat similar to Indo-US nuclear deal but UPA-1 took a strong decision and didn’t roll back on the issue. But a cursory look at UPA-2, one gets an idea that it didn’t enjoy the support among the masses, considering a slew of scams that cost hundreds of thousands of crore rupees to the exchequer. The congress has said that opposition had raised the same issues at the time of nuclear deal but it went ahead and claims that they (BJP) were proven in the course of time.

But nuclear deal and FDI move are completely different issues. The latter affects the livelihood of millions of people and if they fear that it is being taken away from them, they have every reason to protest tirelessly till the decision is reversed. At the same time, if the decision is reversed, it will dent the image of country at the international level. Foreign investors will think twice before planning to invest here.

The least government can do is educate the people as to how the move will benefit them and if it afflicts anyone, which it seems will, the government needs to draw a plan of their rehabilitation. It needs to address the issue of Kirana shops who constitute an important and a huge number of businesses.


Central Govt should take the matter seriously and withdraw their decision for FDI in India. Govt must take the steps to regularize the Parliament Session, which is disturbed due to Govt’s decision on FDI. Central govt has lost their creditability.


Why not bolster and modernize retail by support of Indian government, or Indian organizations. Why tell other companies to come and do it for us -- a mechanism which is known for its destructive effect in other countries. Even president Obama is encouraging the US citizens to buys from and support local stores. What India needs is strengthening of local economies, and not increasing in FDI. We can strengthen ourselves only by recognizing our own strengths and not by shouting that we are weak , please come and make us strong.

SIDDHARTHA SHANKAR MISHRA,
BUREAU CHIEF,
THESE DAYS, ODISHA.