FDI in Indian retail – scope and out of scope – will Walmart sign SoW with India

So finally UPA government under Chidambaram found courage to open up retail sector especially in multi brand format for FDI. Now many people are up in arms against and in the same time there are lot of voices in favour of it. Is it going to really destroy kirana shops and no answer as experts are vary of it. We can hope that it will bring professionalism in that sector.

Currently in retail, many say farmers are in the receiving end as they are not able to get good value for their produce. People argue that farmers will get a raw deal as big retails build their logistics and procure directly from them. But even today farmers who are making use of their intelligence are earning a lot. Those who are averse to the current scenario’s sell them to middlemen often called in commission agents locally. So will they really lose their jobs, i say a big no as they can still act like farmers and can still continue to sell them to multinationals since most of farmers are unaware of this process. To make a change first in this highly globalized world education to the farmers on how this process works in a foremost thing.

Next i will come to kirana shops, they always carry a first mover advantage and a good retailer who is not greedy and reputation will still command a set of loyal customers even if walmart is in neighbourhood. Only thing he needs to do is reinvent himself in this changing times. All walmart stores in single brand retail in partnership with Bharti group are yet to turn black and keeps on accumulating losses. They need to pay a lot in getting a decent place in this high real estate prices.

Indians are big discount buyers and even if big brothers give huge discounts to get high footfalls, it will lose steam once discount is over. (In annual walmart discount sale in US, Indians are the one who stand in queue to enter like booking TATKAL tickets). So at the end they are not going to succeed.

Finally even FUTURE group under retail mogul Kishore Biyani is struggling to book profits and under heavy debts it sold pantaloon to Aditya Birla group. So odds are against them and no worry to Indian kirana stores and a happy ending for them.

How Indian federalism is threatened?

I was forced to write this article as i felt very disturbed with the latest round of  geo political issues the country faces and it really threatens the existence of India as a whole.

The UPA government is grappling issues from across all sectors and i thought of highlighting them individually.

1.Indian Economy

With very high fiscal deficit, lack of political will for fiscal reforms, policy paralysis, crumbling GDP figures and IIP figures, etc,.. I don’t even see any place where there is sun shine. The scams from Coalgate to 2G spectrum is preventing the government from making any policy decisions.

2. Internal Security

Chidambaram who somewhat showed that he can make tough stance against terrorists by revamping the internal security mechanism failed to take state governments on board on NCTC as it somewhat appeared to be encroaching the authority of states. They must have better continued using POTA. Still Maoism and cross border terrorism is continuing unabated.

Coming to the recent ethnic clashes in Assam, BODO’s and illegal Muslim settlers from Bangladesh, the Government handled badly with local clashes spilling over and affecting the life of entire country. The Congress government is in dilemma to balance vote bank and national security.

We can’t feel pity on north eastern states for their plight, as it is self manufactured by them in late 80’s as they violently sent all the outsiders from their states and to stop the violence Indian air force bombarded its own cities. Since there was no free media those days we didn’t know. None ventured there to start any business and it soon became economically backward. The government should repel the acts such as only native state people can buy property in their states which is a handicap in Kashmir and the people can’t feel Indian if there is such acts. The oneness of India is absent in those places till that we will be split in various lines of ethnicity, caste, religion,etc,.

Impact of FDI in Retail in India

There is a lot hue and cry regarding the government’s policy decision to allow 100% FDI in single brand retail. But i guess there is an unwarranted buzz generated and government has to clear lot of misconceptions. To my opinion its good that they open up with clause stating that 30% has to be sourced from local people. Foreign investment in Retail may create a good supply chain relationship and network with the farmer able to directly engage with the retailer and may get a better price for his produce.

Currently the people in between, whom we call as brokers make a killing but systematic manipulation of prices and farmers never get a good price for their produce. But there should be checks to prevent a scenario where farmers are held in ransom by multinationals and threatening them by quoting low prices. We also face a situation where there is a possibility of market getting flooded with cheap chinese products and local producers will be left in lurch affecting  the entire economy of our Country.

Competition makes the smaller traders to serve better with a smile to customers. Local Kirana stores will not lose out business as feared by people.

Dynastic Politics in India-The missing link

I was  wondering why in India dynastic politics has become a routine affair. Right from national parties like Congress(known one) to regional parties like DMK, Rashtriya Lok Dal, NCP all have seen father/son or father/daughter kind of things. If the leader has an extended family then numerous power centers and each one of them competing to show who is great in controlling power. Lets come to the reason, India being a traditionally a Hindu country(other religions are converts from Hindus only) where you have numerous Gods and Goddess. I equate them to father figures but definitely they don’t have any qualities to be compared with Gods. Consider Lord Shiva and we worship her consort Parvathi and their children Karthikeyan and Vinayak. So we can see this as a first family of Siva and we the people or politicians have emulated this and say for example first family of DMK has Karuna holding the power and his extended clan from his sons like Stalin to grand nephews Marans hold numerous power centers.

Karuna's first family

First family of Lord Siva

The Great North-South Divide in India

India as a nation and we Indians as the people have suffered a lot due to an evil fever called corruption. That is why people go rallying behind Gandhians like Anna. But as a avid follower of events i noticed one fact that may threaten integrity of our country.

We say whole nation is behind Anna to get Jan Lokpal passed in Parliament. Team Anna wants to bring lower bureaucracy, judiciary, our respectful  MP’s whose actions will be answerable to people and final one PM under the ambit of Lok Pal.

Everyone knows everything can’t be done and back room negotiations to strike a deal at middle point. No one knows whether it will happen or not. Let me come to the fact which i was talking in the beginning.

Its nothing but the Great North-South divide. The south always refuses to join any fight that has its beginnings in the North. Right from the days of Independence struggle no leader has emerged as a tall leader who can shake the nation. Only exception was Chakravarthi Rajaji who was southern lieutenant of Gandhiji.

In North independence struggle was organized under the leadership of congress but in South the independence struggle was evolution of Anti-Brahminical movement and elevation of back ward classes movement by rationalist leaders like Periyar. The best example is the Vaikom temple entry movement by the Ezhavas of Kerala under the support of some upper castes and Sri Narayana Guru. This has been validated by India’s eminent historian Ramachandra Guha.

The support of Anna is also the same. The movement lacks the vigour as its in New Delhi. Same thing happened in 2G spectrum that so much noise was made in south especially in TN and no political party was able to import the issue and fight the elections in states other than TN.

I don’t know when this divide will be bridged, but one thing when it comes to any matter that threatens the survival of nation people unite. Vande Matarum.