The buzz over UPA’s overnight introduction of FDI policies
in retail ,aviation,power trading etc has given the economists a new thought to
churn upon. The policies may not be welcomed by some strata of the society but it
undoubtedly gives an impetus to the UPA govt
which was time and again accused of suffering from policy paralysis. Whether it
will a boon or bane is still a very subjective matter and cannot be answered
till the time things actually materialize.
As all big economic decisions have a doublewhammy effect so
will this have.
1 1) As
per the notion of most optimists ,it will increase jobs in Indian market. Currently
12 million people are employed in form of short scale retailers or kiranawalas
in the Indian retail industry which is of $ 400 billion whereas if we see the total
business of Walmart which runs to the
score of $400 billion ,employs just 1.3 million people. In view of this
statistics it cant be very safely concluded that but wWe
must keep in mind that small retailers in India cannot be completely driven out
of business because of the basic mindset of Indian household would not like to drive
10 kms to purchase their daily chores.
They will sporadically
in 2 or 3 months but not very often.
But the argument
that FDI will give a lot of jobs and ministers quoting high figures seems
uncalculted.
2)Storage of Agriculture
products which has been a major problem for
the FCI appears to get solved with big
retailers like Walmart entering Indian Retail Industry.
Wastage of agricultural
produce will thereby be reduced.
3)The third incentive would be for
the farmers precisely by the Matter of fact that better technology could be implemented in
farms and better quality of seed hence better agricultural yield.
Whether farmers will get better prices than in current
scenario which involves a lot of middlemen ,is still a question looking at the Statistics of US and
Europe where every minute a farmer is quitting agriculture .It doesn’t suggest
whether the plight of Indian farmers would be improved but certainly here is no
scope for further deterioration.
The picture will get clearer once FDI comes to India.May be
the model that big chain retailers like walmart and future group adopt in India
is different and according
to the Mindset of people.
Amidst so much opposition and threat from TMC ,with a kind
of hope that NASA’s scientists have for finding life of the red planet, I hope that we will get to see a lot of
dynamics in Indian economy which was becoming stagnant of late.UPA is sitting
on a tinderbox being in news for all the bad reasons and over it coming with
the recent fuel price hike and FDI .But the real test is to sail through with the decision of FDI. If UPA gives way to the unscrupulous demands
of Mamata Didi, and rolls back the decision ,it will undoubtedly be the last
nail in UPA’s coffin.
M quite optimistic of the fact
The problem with the current UPA govt is much more than that
is
