First of all let me remind readers less and myself more that I am not one that command any spectacular knowledge about economics, planning, cost controlling or marketing per se. My comments may please be construed as logical thoughts that contradict the bare reality I see around me.
Therefore,let me try to briefly summarize my concerns.
One aspect which seemed to have been widely overlooked is the fundamental issue of national security of our country. Unlike other countries, India is host to a million problems that fill its chambers with every conceivable threat under the sky. Possible entry of foreign enemy agents into India in the semblance of retailers thus become imperative. There is one capacious population that dreams of fragmentation of India. There is one Political Party that bolsters this aspiration for vote bank gains. There is a fragile NE, NW and SE border becoming a bane on security. What more convenience would an enemy agent want?
Without any visible regulatory norms provided by the Government, the wealth of the country, under the current circumstance, will flow out to foreign countries by allowing dominating percentages of ownership shares rested with foreign companies.
I suspect a wide gap, a distance will emerge in the retail sector between the poor merchants and the large middle class customer who under normal circumstance would approach a street retailer for his essential supplies like onion, tomato, potato, vegetables so on and so forth. A giant retailer could easily woo away this middle class chunk by attracting unmatched pricing, promotional offers and immaculate presentation.
Native small scale cottage industries would extirpate for dearth of marketing strategy and pricing structure matching a Giant Retailer. What would a vegetable or fruit vendor know about marketing and pricing strategies? He brings out his daily product to the streets and sells it at a bargain price barely above cost incurred for want of daily sustenance.
Giant Retailers could control the manufacturing sector whereby production of goods could be manipulated to suit their specification and pricing which an ordinary vendor can not meet or provide. This could also lead to an influx of cheap goods manufactured from China, Taiwan etc., procured in volumes at barely nil cost dumped into the domestic market rendering the domestic product, nowhere comparable in price, utterly unsalable and worthless.
The obvious political control by pumping enormous FDI in Retail would lead to hegemony, monopoly and retail market dictatorship at the command of a handful of Giant Retailers. Coca Cola, Pepsi and Seven Up are glaring examples of native industry meltdown, rather closure in the carbonated soft drink industry.
BJP’s opposition is not to FDI per se, but to this loosely compiled FDI in Retail. Ironically, it is the very same Congress that fiercely opposed to FDI in Retail during the NDA regime, stalled Parliament for days and ensured that it would not be implemented, specifically during mid-December 2002 period.
For 9 long years, UPA’s governance never felt introduction of FDI was necessary or of added value to the Nation? Why Now? I emphasize that this it is merely a political *DIVERSION* from the heated #COALGATE and other umpteen Scams UPA, particularly Congress, is mired in.