Fact File: FDI & The Politics 10
Dec. 2012
All those who
had opposed FDI in retail must now respect the verdict and move on
It has been one of the most
divisive issues in recent times and one which brought Parliament to a
standstill several times much to the dismay of the public. Now at last, one
contentious issue has been resolved with the Lok Sabha vote going the
government’s way with 253 voting against the BJP’s motion seeking the
withdrawal of the government’s decision to have 51% FDI in multi-brand retail.
There were 218 votes in favor of the motion in a House of 471. Of course, there
was all the drama and emotion we have come to associate with debates on such
controversial issues. But at least all sides were heard and a vote taken. The
government had resisted the vote but finally gave in owing to persistent
demands from the Opposition. Clearly the Congress has done its political
management well. With the BSP and the SP walking out before the vote, the
government sailed through.
The BJP certainly put up a
good fight with the Leader of the Opposition in the Lok Sabha Sushma Swaraj,
who moved the motion, making a fierce pitch against FDI in retail. But the BJP
was always on somewhat shaky ground given that long ago and far away it had
actually supported FDI in retail. In addition, its apprehensions that foreign
companies coming into multi-brand retail will source their products from
outside seem unfounded given past experience. But the more important point is
that we have always demanded a level-playing field in international commerce
and trade. Indian companies have taken over foreign businesses, the prominent
among them being Jaguar Land Rover by the Tatas. Indians have taken over prized
hotels and invested in several other areas abroad. The Indian economy is robust
enough to withstand what many political parties seem to think is the ‘threat’
of FDI in retail. If they think that the Indian farmer is going to be
‘enslaved’, as one speaker put it, or will be driven out of business, we could
well ask what out political worthies have done to make our agriculture more
competitive and technologically efficient.
The arguments in favour of
FDI in retail are far more persuasive than those against it. As one speaker put
it, the decision can always be reversed if it is found that it is affecting
local businesses and farmers in an adverse manner. Now that the vote is over,
all parties must move forward and deal with the many legislation pending before
Parliament. Enough time has been expended on this issue at the cost of other
crucial matters which have a far more significant impact on the lives of
millions of Indians. The commerce minister has said that this decision was
taken after consulting all stakeholders. He has outlined the many benefits,
including a drastic reduction in wastage of food that will accrue from this
decision. Now that it has been decided upon in the august house, it is incumbent
on those who were opposed to it to respect this. This would be true democracy
in action.
Not only that some of the observations
in the press our worth noting and referred to:
·
“Our opposition seem to have made a habit of “blind opposition”, to what our Govt wants to implement. When the
leftist (Marxist) oppose they project as they are the biggest savior of the
down trodden. When they support the project as they are the biggest revolutionaries.
·
The opposition does a misinformation campaign as when “Mal Mart” would come to India they
would bring an army of white skinned people and take over the reins of India as
the “East India Company” did.
Not telling the people.
(a)
They would make substantial investment
(b)
This would generate a great deal of economic activity
(c)
New techniques and practices would fructify existing norms to
modernity.
(d)
Healthy competition would bring
in better customer service. We have seen in Banking, Insurance, and in some
selected consumer goods (Cars specially)
(e)
Shashi Shekhar says- “Politician by their utterances spread fear,
lawlessness divisiveness just to derive political benefits.
Let us not forget the
1990-91when our economy was at-its worst. The preceding non congress govts (VP
Singh, Charan Singh, and Chandra Shekhar) had pawned the country to the global
markets, It was Dr. Manmohan singh with his astute economic vision put the
country on the right path of liberalization and brought it parallelely to
global economy. Opening up the “Retail” for FDI is a bold step and would yield handsome
results.
