Abdul Kalam wrong in favouring FDI in retail

Dr. Abdulkalam is a great scientist. But it seems that he is unaware of the ground realities. The only avenue open to the unemployed people in our country is retail trading. In recent years the central and state governments have failed to fill up the vacancies. It is estimated that there are 1.5 million vacancies in the various departments and organizations of the central government. Another 2.5 million vacancies exist in state governments and thousands of vacancies exist in public sector enterprises, banks etc. A recent survey has shown that recently many of those involved in petty trading and hawking are educated unemployed youth. If they find employment in the government or organised private sector many of them will move out of petty trading and hawking. Moreover, the the government's contention that FDI in multi-brand retail will lead to creation of 10 million jobs is wrong . But in reality, the creation of 10 million jobs is unachievable even in the long-run, leave alone in just three years. Various studies on the impact of global retail giants setting up retail stores confirm that job losses have occurred everywhere and as a result disrupted the livelihood of the people. On the whole, only around 2.2 million persons will be able to get jobs in the retail establishments and supply chain operations, at the best scenario. But millions of poor and middle class families who survive on tiny and small scale retail business will be rendered , Dr.C.Murukadas,The Times of India, 27.8.2008

RBI bats for more FDI in retail, insurance and aviation

The Reserve Bank of India is echoing the stand of the government. There is absolutely no need to further improve foreign direct investment (FDI) inflows in sectors such as insurance, retail, and aviation. Even in the case of urban infrastructure, the country can afford to find resources, if proper efforts are made to realise real value of natural resources allocated. If corruption is plugged in the allotment of coal blocks, oil/gas blocks, spectrum, land, and other mineral resources, lakhs of crores of rupees can be realised. The amount so realised can be used for infrastructural development and welfare services. A book by this commentator entitled, “FDI in Multi-brand Retail Trade: A Retrograde Step,” is going to be published within the next fortnight by M/s RAC Publications, Chennai. It is the outcome of deep research. The study concludes by stating as follows: “ FDI in retail trade will not serve any purpose. It will do more harm than benefit the people."

Dr.C.Murukadas. Business Line,Posted on: Aug 23, 2012.

It is absolutely true that FDI in multi-brand retail without adequate safeguards will lead to widespread displacement and poor treatment of Indian workers in logistics, agriculture and manufacturing. Moreover, it will be impossible to implement the safeguards because once allowed to set up multibrand retail shops the multinational retail giants will have scant respect for law. Wall-Mart and other global retail giants are waiting for Government node to enter India’s retail market. In fact they are relentlessly pressurizing the Indian Government to open up FDI in Multi-brand retail. They want to reach the Indian retail market not due to concern for the welfare of the people, but because of sheer greed; i.e. the desire to expand their empire and to earn extra profits. In fact, it is the brazen self-interest that drives western mega retail corporations to look for gullible markets in developing countries. Wall-Mart already has a joint venture with Bharti. Once the permission is given for 51 percent FDI in multi-brand retail trade, Wall-Mart and other global retail giants will swamp the Indian retail market and within a few years much of the unorganised retail traders will be forced to quit business and thereby lose their livelihood. It is alleged that Bharti-Walmart is illegally carrying out multi-brand retail trade despite being permitted only to carry out wholesale cash-and-carry or wholesale trade in the country. On the basis of the suit filed by environmental activist Vandana Shiva, the Delhi High Court sought replies of the Centre, Bharti-Walmart and Bharti Retail on a plea for a probe against the firms for allegedly carrying out retail trading in the multi-brand sector in violation of India's existing FDI policy. Thus, even before getting permission to operate multi-brand retail stores, Wall-Mart has violated Indian rules and regulations unlawfully involved in multi-brand retail trading. Now the question is, will Wall-Mart and other multinational retail giants respect Indian laws once permission is granted to operate multi- brand retail stores?Dr.C.Murukadas, The Times of India, August 22, 2012

Mamata Banerjee strongly opposes FDI in retail, other sectors

Mamta Banarjee deserves appreciation for opposing  FDI in key sectors like retail, insurance and aviation. Though on November 24, 2011 the government approved 51 per cent FDI in multi-brand retail and 100 per cent FDI in single brand, it has kept the move in abeyance following strong opposition from the main UPA ally, Trinamool Congress, the BJP-ruled States, AIADMK, Samajwadi Party, Janatha Dal (U) and others. But Mr. Anand Sharma initiated a move to seek the support of States in order to roll out the 51 per cent FDI in multi-brand retail. The Commerce and Industry Minister, Anand Sharma, has addressed a letter in June 20112 to the Chief Ministers of all States and UTs seeking their support for FDI in multi-brand retail. But his efforts to build a consensus on permitting foreign multinational retail giants like Wall-Mart, Tesco and others evoked lukewarm response even from among the Congress ruled states and UTs. According to the written reply on August 8, 2012 presented in the Rajya Sabha by Jyotiraditya Scindia, Minister of State for Commerce and Industry, only two Congress-ruled states (Delhi and Manipur) and two Union Territories (Union Daman & Diu and Dadra and Nagar Haveli) have responded positively to the central government’s letter seeking their support for implementing the decision to allow 51% FDI in the multi-brand retail trade. Therefore, those few politicians and a bundle of bureaucrats should have to change their mind set.
Dr. C., Murukadas, Economic Times, 23 Aug, 2012

Mamata opposes FDI in retail, other sectors

The strong opposition by Trinamool Congress against allowing FDI in key sectors like retail, insurance and aviation arguing that it would be harmful for the people of the country is a welcome phenomenon. In fact, almost all opposition parties, most allays of UPA and many Congress Party men are against such neo-liberal reforms. A Company like Wall-Mart, if it enters India, will sell everything tradable in the retail market, which an ordinary retailer can never imagine selling. The tiny traders will never be able to stand the price war created by these big retailers and as a result they will not be able to survive. These persons will not be able to find jobs in other sectors because of lack of job opportunities. Experiences show that even retailers in the organised sector will not be capable of facing the onslaught from firms such as Wall-Mart, if and when it comes. Therefore, allowing the multinational retail giants into India tantamount to opening the Pandora’s Box. The Hindu, August 23, 2012.

FDI in multi-brand retail to harm Indian workers: Global report

It is absolutely true that FDI in multi-brand retail without adequate safeguards will lead to widespread displacement and poor treatment of Indian workers in logistics, agriculture and manufacturing. Moreover, it will be impossible to implement the safeguards because once allowed to set up multibrand retail shops the multinational retail giants will have scant respect for law. Wall-Mart and other global retail giants are waiting for Government node to enter India’s retail market. In fact they are relentlessly pressurizing the Indian Government to open up FDI in Multi-brand retail. They want to reach the Indian retail market not due to concern for the welfare of the people, but because of sheer greed; i.e. the desire to expand their empire and to earn extra profits. In fact, it is the brazen self-interest that drives western mega retail corporations to look for gullible markets in developing countries. Wall-Mart already has a joint venture with Bharti. Once the permission is given for 51 percent FDI in multi-brand retail trade, Wall-Mart and other global retail giants will swamp the Indian retail market and within a few years much of the unorganised retail traders will be forced to quit business and thereby lose their livelihood. It is alleged that Bharti-Walmart is illegally carrying out multi-brand retail trade despite being permitted only to carry out wholesale cash-and-carry or wholesale trade in the country. On the basis of the suit filed by environmental activist Vandana Shiva, the Delhi High Court sought replies of the Centre, Bharti-Walmart and Bharti Retail on a plea for a probe against the firms for allegedly carrying out retail trading in the multi-brand sector in violation of India's existing FDI policy. Thus, even before getting permission to operate multi-brand retail stores, Wall-Mart has violated Indian rules and regulations unlawfully involved in multi-brand retail trading. Now the question is, will Wall-Mart and other multinational retail giants respect Indian laws once permission is granted to operate multi- brand retail stores?Dr.C.Murukadas, The Times of India, August 22, 2012

Govt firm on raising FDI cap to 49% in insurance

The proposal to hike FDI in the insurance sector to 49 per cent from the existing
26 per cent is suicidal. Standing Committee on Finance has rejected the Government’s
proposal to raise the FDI cap. Foreign multinational insurance giants are waiting in their
wings to capture India's vast and rapidly growing insurance market. Experiences of other
developing countries have shown that increased role of foreign capital would lead to
the possibility of exposing the economy to the vulnerabilities of the global market, which
would cause flight of capital besides endangering the interest of policy holders.
Moreover, the decision to raise the FDI cap on pension to 49 per cent is unwarranted.
It is not wise to throw open the huge pension funds to the foreign investors.It will lead
to tying the pension funds to vulnerabilities of the global market.
Dr.C.Murukadas, Business Line, Aug 23, 2012