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FDI in retail


Last two months, we witnessed a very irresponsible treatment of an issue which has an undeniable
effect on our economy(positive or negative) as well as our routine lives..The issue is of FDI(Foreign Direct Investment) in retail..
Neither the government nor the opposition were sole responsible for such ill-treatment..
The Central Government took a decision of introducing FDI in retail with the foreign investments having 51% stake in any joint project with their Indian counterparts. The decision was an 'Executive' (i.e. the parliament has  no part to play..except that the procedure of implementation has to be presented in the parliament)decision..The Opposition parties stalled the parliament for almost a week demanding
the government to retreat..In this process no work was done in the parliament no important bill was passed which includes bills like Land Acquisition bill, Judicial Accountability bill, food security bill and Lokpal bill..The image of India at an international level was thus tarnished..

Was the act of opposition responsible?(answer is subjective)
I find it was not..(stalling parliament is not always the solution)

Even Government was not correct in directly announcing an implementation of such an important bill, without consulting the opposition, even congress's own allies were not consulted..resulting in opposition by Trinamool congress..An all party meeting would have been a positive step forward..The effect of retail stores(especially WalMart)on the 'Mom and Pop'(kirana) stores of America and UK should also have been considered..
"There was good economics but bad politics" by the government..

The Opposition on the other hand wasn't even intending to reach to a consensus..Its leaders were debating on news channels on the issue but not in the parliament. Seemingly, they were playing for the gallery..I also sense doubt in view that crores of kirana shop owners(Unorganised retail sector) will be affected by opening of retail outlets in just 25 megacities..Even power was given to states to suspend this law if required to..The food storage problem of India will also be controlled(though not completely)..Another advantage of FDI was that the money could not have been disinvested immediately by the foreigners..The Investment was favourable for the farmers who would have got their due and they would be provided an alternative buyer..The employment factor should also have been considered..The choice and benefit to the consumer was also a factor..
Moreover, the BJP in 2001 supported the introduction of FDI with 49% stake of foreign investors..
(The FDI decision will again be reintroduced in march with some modifications..)

I would love to see parliamentarians acting responsibly in future(both government and opposition), with the focus on reaching the consensus rather than stalling the working..

I am not in favour of FDI, nor against it..
I was just disappointed with the way issue was handled..

Thank you!!




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