Tags:
Journalism of Courage
The issue of FDI in retail remains a cliffhanger: faced with ferocious political disagreement,the government has decided to suspend it for the sake of getting on with legislative business,until it evolves a consensus among stakeholders,parties and states.
However,that consensus must now be actively sought. FDI in retail is clearly an idea whose time has come,and it is also possible to melt away much of the opposition to it. Given that India is one of the most sought-after markets for global retail,the economic benefits of this decision will be tremendous. Many specific constituencies stand to gain. Big box retailers bring consolidation and efficiency,and all their attendant benefits,so consumers will have lower prices and greater choice. Farmers can stand to profit hugely,as these retailers procure directly,and reduce the layers of costly intermediation. Small and medium businesses,who these retailers will source from,also stand to benefit. Global money and enterprise will also upgrade infrastructure and supply chains. This is not to say that the process will be entirely painless. Some jobs will be lost,others gained. However,the fears around global retail have been greatly exaggerated by small-trader lobbies and their political backers like the BJP. For instance,it is not clear that an organised retail outlet poses an existential threat to independent kirana stores,apart from being a shopping alternative in that sense,another kirana store in the same area would be a bigger threat. Big retailers and independent neighbourhood stores can both thrive in India,as they have in other places a big chain-store offers deeper discounts and greater variety,while a kirana store might be located closer,offer more personalised service and possibly deliver home.
