It appears that the Centre is on the way to put the shutters down where retail FDI is concerned. Parliament started functioning on December 7 after the government gave in to opposition demands for a commitment not to operationalise the Cabinet’s controversial decision to allow 51 per cent in FDI in multi-brand retail until there was a consensus on the issue. Though the government has refused to reverse the decision, the conditions it has accepted are rigorous. The Left and the BJP have claimed victory even as the Congress blames it on coalition politics (‘Good economics does not always make good politics’).
That the Opposition has literally forced the issue does not augur well for the UPA. It exposes the UPA’s weaknesses: it has simply bowed to the Oppositions’ demand, taking the easy way out and blaming it on coalition politics.
To begin with, the government is not run on general consensus. The UPA has the people’s mandate to govern the country as it deems fit, not cater to the Opposition’s interests at every turn. But what is the rationale behind the opposition to FDI in retail? It seems opposition for opposition’s sake? The reaction reminds us of the time when the big retail chains like Reliance Fresh and more entered the retail market. There was a furor by political parties, with the BJP and the Left calling it anti-nationalist. Mamata Banerjee, who never likes to take the back seat on any occasion of protest, has been vehemently against not only the foreign MNCs but also our very own desi big-time industrialists (after all, she drove out the Tatas from Singur). The political commotion this time is, on the surface, to safeguard the interests of the common man but in fact it hasn’t been so. When the big stores entered retail, did the kirana stores shut down after all?
FDI in retail is nothing to be scared about. It actually makes sense in the context of a growing and liberalized economy, an economy that cannot afford to get scared of increasing competition. What would entry of the FDIs in retail mean? It would mean better choice at every level. It would mean better availability of products, well-packaged and better quality products, competitive prices, accountability of those who sell with regard to what they sell for the consumers—the aam aadmi regarding whom everyone is so concerned. Consumers always benefit from competition, as they stand to gain. When competition is fierce, consumers are made to feel they get more for what they pay. And so we have ‘combo offers’ and other allurements that pay tremendous dividends at times. Entry of MNCs in retail would mean better payment options for customers, who may simply use their debit cards to purchase items for their weekly or monthly requirement without having to carry precious cash around all the time.
The wave of globalization and liberalization is sweeping the world and any attempts to thwart it are neither possible nor necessary. Think about the way things were decades ago. At one time pheriwalas did the rounds in our villages and towns selling a variety of things, door to door. However, small shops or kirana stores soon entered the scene and they grew in plenty. Then came the bigger chains such as the Super Bazaars which at one time were very popular. Today it is the day of the mega retail chains. In every instance we see that the emergence of the new did not lead to a total collapse of what was. The kirana stores are still alive and kicking in every street, never mind the Reliance Fresh, More, Apna Bazaar and other retail outlets that are doing big business. The weekly markets, an old tradition, are not less crowded with the arrival of these retail stores and the emergence of the glitzy shopping malls. Each segment of the population has its own wants and demands, and it has its own outlet to cater to its needs. Ultimately it is the consumer who must decide what he wants and how he would like to have it. There have been cases where mega chains—the Subhiksha stores come to mind—have simply shut shop because the consumers rejected them! It is always the consumers’ choice. What right has the netas with their plush bungalows and luxurious lifestyles, who have exotic holidays abroad and educate their children in the choicest universities of the West; will they tell the aam aadmi that they must not shop at mega retail chains from abroad?
The right and left parties are opposing FDI in retail for opposition’s sake. This should be seen only as a political gimmick. With no real concern for the aam aadmi who deserves better. It appears that our politicians do not even think the aam aadmi has the ability to think for himself and decide where and how he must buy what he wants!
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