The recent decision of the central government to
allow 51 percent FDI in multi-brand retail trade and 100 percent FDI in single
brand retail trade has aroused consternation
of various sections of the society, viz. the retail traders, politicians,
farmers and consumers. The reasons adduced by the government and the votaries
of FDI are not only shallow but also whimsical. When the very usefulness of
globalisation and neo-liberal reforms have become a question mark all over the
world, the government’s move to destabilize the retail trade sector by allowing
foreign multinational retail giants to compete
with the petty traders and hawkers in the name of reforms is rather perplexing, besides being
objectionable.
Of course, the unorganised/informal retail trade
sector in India is overcrowded with too many tiny/petty operators leading to
the emergence of the problem of disguised unemployment/under-employment. There
are far too numerous informal retail operators in the country than is required
for the efficient functioning of the retail trade sector. That is, even if a
portion of the retail traders are siphoned off from trading, the transfer of
goods from manufacturers/ producers to consumers will not be affected. Thus,
after agriculture, the incidence of underemployment/ disguised
unemployment is probably highest in the Indian retail sector. Yet it continues to act as a shock absorber
for the unemployed people as well as those
who are displaced from other sectors of the economy. But, if government is able
to ensure better opportunities for gainful employment with higher earnings,
much of those involved in the unorganised retail trade will move away.
Consequently,
it is the bounden duty of the government to protect and promote the
unorganised/informal retail trade sector until it is possible to generate
adequate job opportunities so that all those who are disguisedly employed will
move out. Until then, the informal retail traders have to be fostered and
protected. It is possible only through
rationalisation and modernisation of the unorganised retail trade. But, so far
no worthwhile schemes or programmes have been initiated by the government or
the planning commission for the improvement and stabilisation of the retail
trade sector. 