Sep 17 (): After heavy criticism in American media Dr. Manmohan Singh the Prime Minister of India has decided to sell India in retail to USA. The American President Barack Obama has improved his prospects of winning his re-election. He has had the last laugh after achieving Nuclear pact and retail business with India.
The attractive sales has come with 51 per cent discount in multi-brand retail along with a combo offer of 100 per cent in single brand retail and bonus 49 percent discount in civil aviation sector.
The vocal votaries and advertisers of allowing over fifty percent in retail argue with the following points:
- Farmers will get back-end infrastructure for storage during abundant yield to reduce wastage
- Modernisation of agricultural practices to suit monsoon-driven and unpredictable weather
- Elimination of intermediate traders – thereby farmers get better prices for their produce
- Modern inventory and supply chain management
- Quality products to consumers
But there is a question – why such practices cannot be framed and implemented within our country if we can match every super power in Nuclear technology, Space science etc?
The people oriented social workers, Communist parties and election oriented political parties oppose this move for the following reasons:
- The benefit will never be transferred to farmers based on the experience of the developed countries where the agriculture sector heavily depends on the State support
- Indian agricultural lands are in small holdings unlike the US. The existing technology with India in remote sensing can assist farmers in cultivation at appropriate season
- Middlemen in purchase and sales of produce in multi-level now benefit only Indian traders. FDI benefits shall be reaped by foreign retail chains. The management techniques in retail shops shall create more intermediate beneficiaries. Moreover, Indian majors in retail shall be affected
- In the name of quality, the cost of modernisation and management shall only eat into the purse of consumers
Therefore, the entry of Wal-Mart style stores cannot help either the farmers or the Indian poor traders. The most affected shall be the small shop owners. The growing upper middle class and the rich consumers shall be lured by multi-national retailers.
The decision by the economist Dr. Manmohan Singh has been considered by investors, people in share holding business and rich people as a step forward to boost the sagging economy on the whole.
But, for a common man allowing the FDI in retail combined with restrictions in domestic gas cylinders and increase in diesel price in one shot is going to be an unbearable burden. Dr.Manmohan Singh after the sales of spectrum and coal to the domestic looters has now sold out India to the global looters.