FDI in Multi-Brand Retail: Part II

The potential social impact of these policies warrants a sneak into the annals of wrong side of our history. A foreign trading company was responsible our enslavement for over two centuries. The various media houses often portray FDI as a panacea for all evils of this country. The retailers like Wal-Mart, Carrefour and Tesco have earned enough publicity without spending a single Penny.

All the arguments cited here against FDI in Multi-brand retail are based on a reference called Wall-Mart’s Economic foot print; a literature survey prepared by a US based institution, the Hunter College. According to survey the formula for financial success includes low labor costs with limited employee benefits and leveraging of Governmental subsidies.

The capital requirement of the country is huge, which can be satiated only by foreign dollars. The current regulations permits only 53 cities to entertain Multi-Brand FDI, can 53 cities solve the capital requirements for 1.2 billion people? The incoming capital are not charity dollars, they come here in search of profits, profits which are going to sail offshore some day.

The proposed development in cold storage and Logistic is already open for FDI; the foreigners don’t want to play a secondary role to the Indian retailers. All these infrastructures will bear fruits only if we have proper Road infrastructure in India. Do you have one in your neighborhood? Do you believe the politicians are going to use the tax money for your benefits? The extra money earned by the ‘Inglish Raj’ is going to make the rich, richer and the poor, poorer.

The APMC brokers may be replaced more educated and certified brokers. Farmers may be forced to produce what the MNCs want the most and this may wipe out the food security of the farmers. Let’s not forget the forced Indigo Plantation of our history. Most of purchases could be made in futures market by these MNCs. As far Jobs, the hunter report says ‘ more than two third of wall-mart employees don’t try to support a family’. The consumers get benefits only when they buy everything in bulk.

After Imperialism and colonialism, it’s the turn of capitalism. In a nation where any foreign practice was once considered as evil, the devil has come to stay. Only time would answer, whether he is a devil or an angel?