Chief Minister Jayalalithaa on Monday reiterated that her government was firmly opposed to the recent decision of the Centre to open up Foreign Direct Investment (FDI) in retail trade and declared it would not be permitted in Tamil Nadu.
Addressing a cross-section of leaders of the Indian industry at an MoU signing ceremony, she described FDI as a double-edged sword and the government had to handle it ‘dexterously’ as it was fraught with the danger of destroying small business ventures that provided jobs to millions of people. Recalling how she had transformed Tamil Nadu during her previous regimes (1991-96 and 2001-2006) to make it a number one State in the country, she said her government firmly believed in being very responsive to the implications of FDI. In some fields, FDI was purely based on private rationality with the underlying principle of ‘private gain at social loss.’
In September, when the Centre announced its decision on allowing FDI in retail trade, the Chief Minister had termed it an ill-advised move and called for immediate withdrawal as it was totally undemocratic and was against the interests of people.
This is a Chief Minister who does not understand what she is doing or talking, she has no regrets of keeping liqour flowing all over the state which is demolishing many families and that too the very poor families, her liqour policy has ruined and continues to ruin the lives many youngsters, her disastrous failure on the power situation has led to closure of many small industries leading to unemployment of many, and now shamelessly she is talking about "private gain at social loss" which is exactly what she is doing with her liqour policy,only herself and her AIADMK are gaining through liqour. Wonder when she will start thinking, if Saravana Stores or Saravan Bhavan cannot stop roadside vendors or roadside food stalls how can FDI destroy small farmers and small traders?
It is very coable of Ms Jayalalithaa to make her clarification. The issue has to be discussed with proper safeguards to make it work successfully to all stake holders. Mere opposition as is being done by some political parties is counterproductive.
Her assessment about FDI is laudable. People blindly support or oppose
giving points to suit their views. Her grasp of issues is very good. She
is moving in the right direction to progress the state. Farmers and
producers are taken a ride in the present system by middlemen. Increase
in the number of middle men, is causing more harm to farmers and
consumers alike.
When Humans are involved in the FDI at the interface there will be
lots and lots of people who will have bitter experiences to narrate
about their greed and criminality.Therefore we can safely assume that
the small and crafty businessmen will always be there to cater to the
people in a most pleasing manner.It is not always money but how well
the small businessmen pleases that makes the difference.The large
scale businessmen who are involved in FDI in retailing cannot put
people through a factory to mould them to please everybody.Let them
try!
(1) Political parties’ opposition to FDI in retail, like that of Ms Jayalalithaa, is mainly for electoral benefits than out of conviction – only the left parties may be opposed on grounds of some principles. (2) Leaders of political parties need to be told again and again that consumers want their interests to be taken care of, with or without FDI. (3) Are consumers, who far outnumber the traders, not more important for Ms Jayalalithaa? (4) I believe that all parties are just exaggerating the figure of kirana stores in the country, with no official statistics available. (5) Is there any scope for reducing the gap between the price farmers get paid for their produce and final price paid by consumers? If instead of FDI our own companies are able to manage the supply chain and are allowed to market farmers’ produce without interference from Agriculture Produce Marketing Committees, consumers would be benefit with fair prices and may not have any preference for FDI in retail.
Instead of opposing outright, it could be studied from states where it is functioning now,
without any prejudice. Then a final decision could be made in fairness to the best interest of
the producers and consumers of the state. Millions around the world are enjoying the best
shopping experience with similar operations.
Indian industries do not manufacture goods at international qualities. Even Indian manufactured traditional goods like textiles and shoes itself does not meet international standards.
If India do not want FDI then Indians should develop inovative entrepreneurial skills to match the MNCs. Then Indians should invest overseas.
China had developed own electronic, construction and communication MNC to the level of developed countries.
Indians proud of largest democracy in the world without knowing it is the largest liability to India benefiting only the politicians.
Just like Industrial estates in the country we can allow to establish in place of Wall Mart /Casco ,our small and medium business enterprises to open shops under one roof ie in one large area with car parking facilities , food court etc called Business enterprises Estate / village with all facilities like open display of goods by the entreprenuers .(similar to wall mart / casco /IKEA/ office depot / etc ). they can sell at cheaper rate .These shops should be located in subburbs (outskirts of the cities ) The entire investments comes from the exixting small/ or large traders.
These people will buy direct from the farmers /artisans etc
It is a welcome news.
The danger with FDI, where there certainly is the possible loss/damage to our small scale (Ma & Pa - family owned) retail sector, has the potential of greater damage to the supply side/ manufacturing sector. Giant retailers will go for the cheapest products (that they can beat down on the price) which may result in cheaper products for the consumers. However, it has the potential to destroy the manufacturing sector
Look and see the rhetoric emanating from the US with regards to China. It is primarily because of loss of jobs in the manufacturing sector(from socks to auto parts)and is a debating point in the US elections.
I once did an unscientific evaluation at a Walmart in the Mid West United States with my kids(this was in 2005). Just about every product we looked at was made in China.
10 years down the road after the manufacturing sector is destroyed it may be too late to cry.....
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