FDI in retail

FDI in retail is back in the news. There are reports that the government will allow FDI in multi-brand retail from April 2012. This is a topic which has seen much controversy. Economists have been discussing the issue for years. Strangely enough, this issue also sees the BJP and the Left on the same page. An issue on which the left and the right stand together must be a special one and that certainly is the case.

Before I go into my view on the subject, some background is in order. India permits 100% FDI (Foreign Direct Investment) in certain sectors, like cash and carry, wholesale trading and 51% FDI in single brand retail (high end stores like GUCCI come into this category). FDI in retail has for long been seen as the answer to India’s inflation problem. The Economic Survey 2010-11 noted that “"Permitting FDI in retail in a phased manner beginning with metros and incentivizing the existing retail shops to modernize could help address the concerns of farmers and consumers. FDI in retail may also help bring in technical know-how to set up efficient supply chains which could act as models of development." Numerous companies involved in the sector welcome a move to have FDI in retail. So why the controversy?

India has a number of kirana shops, wholesale shops which form the backbone of the present retail industry in the country. These are generally small businesses (called mom and pop stores in the US) which might not be able to compete if the big companies enter the retail sector. There is a political angle as well: the retail sector contributes 13% of GDP and employs a huge mass of people. Can any government afford to alienate this vote bank, especially in the era of coalition politics with little scope for political ideology?

Before I go into the political angle, it is important to list the reasons why so many people see FDI in retail as a good thing. The Indian food sector is an absolute mess, with around 40% of the food being produced going waste. Thus we have the unsavoury scenes of rats eating grain when millions of our people go to bed hungry. Storage and distribution facilities are non-existent. The Food Corporation of India is unable to store the grain that is produced and leaves stacks of grain in the open, only to be destroyed by rain. Global retailers, with the technical expertise, will help us fix our supply chain and storage problems. Critical food produce will not be wasted and the poor in this country will have access to food, a basic duty of the state.

In addition to this, another benefit of having a smooth transit of produce from farms to shop floors is the elimination of middlemen. Any person with a rudimentary knowledge of Indian agriculture understands how middlemen play havoc with both the farmer and the consumer. FDI in retail will ensure contract farming, which will mean that the farmers will sell their produce directly to the retail chains. They will get the market price for their produce (which can easily be ascertained in today’s internet age) and the consumers will not have to pay through the nose for basic foodgrain.

Another advantage is that global retailers setting up operations in India will have to employ a huge mass of people. This could help address our huge unemployment numbers. It is well known that the present economic model is unsustainable: the over-dependence on services is not feasible in the long term. India needs a seismic change and FDI in retail could help contribute in a small manner to that change. Sure, at some point we will have to look towards more labour intensive sectors like manufacturing, but this can surely be an option in the short term. Furthermore, credit, the bane of every business in India (apart from corruption and red tape) will not be an issue with global retailers coming in.

But what of the wholesale traders, the kirana shops which are dead against this move? Is their survival so important that we ignore all the benefits that FDI in retail will provide? Well, no. The argument that traders need protection from the big retail chains is an argument that belongs to an age gone by. It is evident that even the biggest retailer will not be able to cater to every part of India. This is where wholesale traders come in. They can certainly help the big retailers offer their services in the rural areas of the country. As we have seen, prices will come down as a result of global retailers getting involved. These traders can come to the party, as it were, and see to it that the rural areas do not get left behind. India is looking forward, not looking back. Everybody must change with the times, and so must wholesale traders, who for long have enjoyed at the expense of the farmer and the consumer. Traders must look for innovative ways to stay competitive and there are many sectors where players have changed to remain relevant. There is no reason why retailers cannot adopt the same outlook.

Finally, we come to the political argument. Like I mentioned, on this issue, the left and the right find each other on the same platform. While such a scenario would certainly be desirable if these parties are working for the good of the country, that is not the case here. Narrow political considerations are at play. It is a downright disgrace that our politicians put their interests before that of the nation. The left’s opposition is not unexpected, what with the comrades refusing to come out of their 19^th century dogma, but the BJP’s opposition is surprising. Even more ridiculous is the reasons cited for opposition. The argument that FDI in retail will not bring inflation down defies common sense. Yashwant Sinha, probably the worst Finance Minister this country has had the misfortune of suffering, makes a ridiculous parallel between FDI in India and FDI in Mexico. If one were to make arguments based on how liberal policies did not work in a particular country, we’d have to be back to the bad old days of socialism and perpetual bondage. On second thought, it is not surprising that the BJP, which came to power on the back of lies on our heritage, culture and history, chooses to extend its habit of dishonesty and immoral conduct to economic policy.

Competition is a good thing. There is no better example for this than the telecom sector. The government has an obligation to provide every citizen of this country three square meals a day. Foodgrains rotting outside warehouses, rats and dogs eating grain while millions go to bed hungry, and the middle class having to pay exorbitant prices for foodgrains is a disaster for any elected government. The government has to choice between succumbing to the pressure of an oligarchy and leading us all to ruin and fulfilling its obligation to the Indian people. One hopes that the government makes the right choice.

Binayak Sen: a pawn in a larger game

What is it about Binayak Sen? Unfortunately, in India, we have many more cases of individuals being wrongly treated by the state. Why, then, do Nobel laureates not sign petitions, so-called liberals with dubious credentials not blast the state, and the media not use such shrill tones and cover the issue in any of the other cases?



The obvious answer would be the man's story. Here is a person who could have made a lot of money by doing what so many of his colleagues do. But he chose to serve the poor and make a difference to the lives of the less fortunate. However, there is more to this than that. Sure, the man's story does play a part, but there are people with equally inspiring stories who don't get the same "print-space". The truth is that Dr Sen is a perfect fit for those who take a lot of pleasure in throwing mud at India. They take up his cause because the story of a Doctor who fought for the poor is more "sexy" than the story of, say, an illiterate villager who fights the power despite bearing its full brunt time and again.




Over the last few months, I have been exposed to a mafia of haters whose only job is to throw mud at India. I do not know why they do it, but their modus operandi is simple. Highlight the negatives and make it larger than they are and deny the positives. I don't want to take names, but a knowledgeable person will know whom I am talking about. To them, India has to be criticised, our failures highlighted, more so than any other country. If their criticism was based on a desire to be constructive, to contribute to making towards a better India, I would have been grateful. But that is not the case. To them, Dr Sen's case is manna from heaven, especially when India is seeking an enhanced role in the international community. They do not have an iota of knowledge on the case; nor do they even read the judgement. To them, what matters is that India gets bad press. The same facts which they claim are sacred are irrelevant.



The left-liberal reporting of the case is a perfect case study in hypocrisy. Here is a band of hypocrites who wax eulogies on a judgement if they agree with it, and blast another which does not agree with their ideology. To be fair, this would have been acceptable and indeed, along expected lines if it were not for a propensity to play around with words like "mockery of justice", laws which fall short of "standards for criminal prosecution", and a trial which apparently is unfair. How is it that laws which are perfectly fine in one case fall short of standards on another; how is it that the same system they praise to the skies in one case is unfair in another? They refuse to read the judgement, to understand what the judge said when he mentioned that he would have taken a lenient view if it were not for the Maoists. To me, it seems that the left-libs take themselves far too seriously; they believe to the bigger than the idea of India, they believe their story is bigger than the institutions which make India a democracy, no matter however flawed.




If you disagree with a judgement (as I do in this case), argue on the basis of the case alone. Certainly, have a media campaign demanding his release along with compensation, have public debates on the issue, but implanting motives on the judiciary, which for all its faults is independent, is not on. However, left-liberals have a tendency to exaggerate, and it is this attitude the haters feed on.



I firmly believe Dr Sen is being played with. One the one hand is the police, who use an environment of anti-Maoism to serve their needs, and an unholy alliance of haters and so-called liberals who use him to stoke their ego, or to feed their Indophobia. This is very unfortunate.

Bhopal : For 26 years, victims cried. India remainded deaf.

The Group of Ministers constituted to look into the Bhopal Gas Verdict is due to present its report on Monday. TV channels across the country have reported that the GoM intends to look into all aspects of the issue, and the report will be presented to the Prime Minister on Monday. There have been reports that the GoM will validate the stand of the Law Ministry, that Dow Chemicals is liable for the clean-up of the site. This is strange, given that Mr Chidambaram had earlier argued that Dow was not liable. Is this a result of the furore created post the verdict?


That it took 26 years for the verdict to be delivered is a crime in itself. Indian officials have been indicted in the case, booked for criminal negligence and the crime has been treated as if it were a road accident. All this while Warren Anderson plays golf. Hope you are enjoying the game, Mr Anderson. Loving it while the victims suffer to this day due to your negligence.

Parallels have been drawn to the Gulf of Mexico oil spill, and the fact that BP now has to pay billions of dollars for the death of a few people and some animals. How many people were killed in Bhopal? Thousand? Two thousand? No. 20,000. The compensation given? 470 million dollars. Which amounts to 500 USD per person. The height of arrogance was a Dow Chemicals official saying "A settlement has been paid. 500 USD in India is enough to treat a person for one year". If you ask me, the person who made that statement should be brought to India and made to visit the site, visit each of the victims' families, each family which is affected, and they will let that person now how much the settlement helped them. Saved them from hell, that did.


President Obama sees the environment as a very important issue. Fair enough, it is time someone took note. He goes on TV, saying he's "searching whose ass to kick" while the people of Bhopal get their asses kicked everyday. Due to the negligence of an American company. This is the same Obama who sees India as a natural ally, and who only weeks ago, eulogized India so much the lot of us went giddy with excitement. Some people would have wet themselves. So if he had so much concern for the environment, and thinks so highly of India, why does he not order Dow to pay liabilities? Why does his administration, to this day, lobby for Dow not being slapped with these liabilities? Why does his administration treat the victims which such utter contempt? Why does he allow Warren Anderson to tend to his garden when he should be sitting in Tihar jail, serving life or waiting for his execution? I'll tell you why. America, for all it's pretence of being a responsible world power, cares not one jot for the world. All they care for is their interest, their companies, and if the same ethics they profess come in the way, sod them all. Because there is one set of standards for Americans, and quite another for brown skinned, third world slumdogs like Indians. Indians exist only to be looted, exploited, and the country exists only to dump toxic waste. If America today needs the Indian economy, they will come to India. Dump their waste, sell their stuff, and if an accident occurs, withhold all information which could save lives, to save their own sorry asses. Why should America and Americans care if Indians die? They live in inhuman conditions anyway. Like I said, one set of rules for Joe from Brooklyn, quite another for Jai from Bhopal. All this while India is "an emerging world power", "a nation which shares our values", yawn, yawn. And this is the country so many of us dream to migrate to. Ask any competent person what they want to do, they want to leave for the US. How does it matter if I betray my country? I care only for myself. I have more "scope" in the US, will earn more money. What does India have for me? Why should I care if America treats my country and its people like dirt? What does that have to do with the money I earn?


But is this not what we deserve? Do we not deserve this when we treat our own people with such utter contempt? The tragedy of Bhopal, more than the negligence, the arrogance of the Americans , is the betrayal by Indian governments, central and state, the judiciary, the media, civil society, the people. When we supposedly spend crores on providing clean drinking water to the people of Bhopal, they continue to suffer from many diseases, since the water is contaminated. Instead of setting things right, our politicians argue that the other party is to blame, "they did not do anything when they were in power!". Well, that holds true for you as well. And we, the people, argue over which party is to blame. If I am a BJP supporter, I will blame the Congress, a Congress supporter, question the validity of the BJP questioning the Congress, a left supporter, blame everybody, but fail to look for solutions. And if i belong to this so called New India, a youth who is sick of the system, I say every politician, bureaucrat is to blame, without understanding that the people are to blame as well, because we did not ask questions, and demand accountability. Why is this latest GoM, after 26 years, making all the right noises? Because, you see, they should be seen to be doing something, they fear for their votes. They fear the people. And instead of using that, every time, in every issue, we let them take us for a ride? We vote the same bunch of incompetent nitwits who can't stitch two coherent, intelligent words together. All they need to do is to polarize on the basis of caste, religion, language, gender. 5 years in the gaddi. Guaranteed. Nothing else matters.

I am sick and tired of this betrayal of our own people. All I want now is for systems to be in place, so that no country ever dares to dump their waste here. No company ever dares to cut corners while they are in India. Welcome to India, Athidhi Devo Bavah, but play by our rules. More importantly, I want every politician to get it into their thick heads that they exist to serve us. Not the other way around. All I want is for the victims to live a peaceful life. They have suffered enough. They are screaming for help. and for 26 years, India, not the establishment, not the judiciary, not the media, continued to remain deaf. Anderson and this drama of extradition is secondary.



Union Government of India to act on Bhopal issue. Could file a curative appeal before the Supreme Court and seek Anderson extradition. June 21 could be a new opening.


I am an optimist, and at least now, I hope the system acts. I hope lessons are learnt. And then, the same nonsense which Union Carbide did, which is going on in Jharkand, in Bellary, should be tackled head on. And if it doesn't, I plan to demand till the establishment gets sick and tired of me, so that it does. I refuse to moan, whinge, complain. Is it too much to hope that another Bhopal does not take place? Is it too much to hope for the India of Gandhi's dreams?

Aman Ki Asha?? I Think Not....

And here we go..as most of us expected, some sections of the media are out preaching how peace between India and Pakistan is the only way forward. All very good; however, how would you reason with a nation which has no constructive ambition? The national hobby of our esteemed neighbors is to maim, kill or injure in some form a majority of our people.



Amitabh Bacchan is out sprouting couplets for peace; and we have the usual drivel arguing for peace and maturity from both sides. I daresay their argument rings hollow. Hafiz Sayeed not only roams free, but continues his diatribe against India; the ISI continues plotting future terrorist attacks against us while they talk of not being hawkish. I reckon our esteemed neighbour from across the border will magically stop their nefarious activities the second we follow their prescription.



As for the Big B, I lost all respect for him when he decided to align himself with crooks like Amar Singh and Mulayam Singh Yadav. That the two are now estranged is another matter.



Lets not kid ourselves. It takes two to tango. We cannot have an illusion of maintaining peace and harmony (for the good of the region, no less) while the other side refuses to see reason. Nor can we depend on the Yanks to keep the Pakis in line. The Yanks only care about themselves, and all talk of engagement with India is just hogwash. As long as their necks are safe, they will not care who stands to lose. That has been the American policy for long, and it seemingly will not change despite our pleas. The only thing we can do is strengthening ourselves and be dogged in our fight for justice.



Programs like Aman Ki Asha and the rest are an insult to all the martyrs and the thousands who keep us safe by risking their lives everyday. Is this how we pay them back? I am not being hawkish when I say that peace with Pakistan is not possible, just realistic. We are alone in this fight. The last thing we need is for influential figures leading us to believe the peace that all of us yearn for, despite everything, is possible. This daydream needs to stop.

Combating Maoist Thuggery By Political Posturing

It seems that the Left and double standards are synonymous with each other. Following the Maoist attack on Lalgargh, the Left argued that proscription would increase their appeal amongst the sections of society they represent. It is baffling that they believe the same ideology cannot be extended to right-wing organizations. One would reckon that the danger these forces represent to the state are far too serious for political parties to play politics, but our politicians always baffle and confound us with their ever decreasing sense of ethos.

Nobody in their right mind would believe that force alone would work against the Maoists. The fact that the Maoist cadre consists of the most vulnerable section of society is an indication of how we, as a nation, have failed in our promise to make growth equitable. We must first accept that we have made grave errors in our treatment of the sections that are ensnared by Maoist ideology. We must convince them that the ideology they believe in will not achieve what they seek. Then, we must work towards providing development to the weakest, and simultaneously fight the Maoists politically and militarily.

The Maoists are thugs who use pretensions of championing pro-people causes. If they were truly for the masses, why don’t they lay down their arms and join the political mainstream? They blow up cell phone towers and other infrastructure which provide so many benefits to the people whose cause they claim to fight for.

We would do well to remember that communism, even socialism will not deliver our people from poverty; our pre-1991 economic statistics are proof of this. We must contain Naxalism by providing the basic amenities of our people. For that, our political class needs to be united. Looking for vote banks and playing politics in situations which threaten internal security is dangerous;and it is not only the Left which is guilty. It seems our politicians have still not learnt the lessons of 26/11. They must act fast lest they need another reminder.

Colleges And Their Virtuous Bans

I don’t know what it is with colleges and their infinite wisdom with regard to protecting the virtue of their female students. Four colleges in Kanpur have banned T-Shirts and jeans. They are not the only ones. My Alma mater, Sri Chandrasekharendra Saraswati Viswa Mahavidyalaya University, enforced the ban, as did Anna University and a host of other colleges. Bapuji Dental College, where my sister has taken admission for BDS apparently has the ban in place as well. Gender neutrality is a concept either lost in our colleges or forgotten.

In some cases, the ban is applicable to both male and female students (my college is an example, though admittedly not a good one, seeing that there are a host of rules with regard to the female student population which are regressive) on the grounds on professionalism and preparing the student to the work environment. Yes, one has to adhere to a certain dress code in the work environment, but what is the need for preparation, given that the transition will be natural? Colleges are not only about academics and preparation for the big, bad world, but also a coming of age; an experience that shapes an individual. Professionalism is not only about the clothes; in fact if it were only about the clothes, it would not be a quality that prospective employers search for.

Even more out of touch with reality is the assertion that jeans and T-Shirts are provocative and invite some form of abuse. This stems out of a patriarchal belief that clothes are a cause for attacks on women, that victims “deserved it”. Numerous studies have proved that clothes, provocative or otherwise, are not a reason for attacks on women. The mindset that a woman is somehow inferior to a man is behind many of these attacks. Men must learn to respect boundaries. I wonder how much divinity we posses when everyday, there are reports of sexual abuse of women.

One cannot decide what an individual has to wear, irrespective of the individual’s gender. If an individual has a right to vote, then he/she must have the right to decide what he/she wears. College goers must be treated like the adults they are.

What must be fought is sexual abuse as a whole. Provocation is not a defence. It is a fact that institutions as well as a large part of our population, male and female must understand. I must have the freedom to wear what I want, be it T-Shirts, jeans, cargos or a simple shirt and trousers. Denial of this freedom is akin to denial of basic human rights.

This Ain't The End

These are not good days for Manchester United fans. Ever since the champions league final, fans have had to face an onslaught of bad news. What should have been a time of celebration and jubilation has turned into concern and dare we say it, fear.

Football fans point to the champions league final and say that Manchester United was all hype and no substance; that Barcelona proved that claims of United being the best in the world were far-fetched. My answer is simple. There can be no denying that Barca were the better team in Rome, just as there can be no denying that United played magnificently to retain the premier league, win the club world cup and almost become the first team to retain the European Cup. Some United fans will offer excuses and say, it would have been different had United taken at least one of the many chances they had in the first ten minutes. However, ifs and buts do not win trophies. There is no shame in losing to a quality team.

There have been suggestions that a huge overhaul is needed, but one bad game does not diminish the achievement of the players. Great teams bounce back from disappointments, and United will show next season why we are one of the best in the world.

That noble ambition has suffered a setback by the departures of Cristiano Ronaldo and Carlos Tevez. I can see Liverpool, Chelsea, Arsenal and even Man City fans jumping in glee every time speculation rises of another high profile departure from Old Trafford. Ronaldo and Tevez will be sorely missed; and it will be difficult for us to replace them. However, this situation provides an opportunity to the youngsters such as Nani, Tosic, Ljajic, Wellbeck, Macheda and Gibson. There are rumours that Karim Benzema and Douglas Costa are being approached by the club, but newspaper stories are often proved wrong, and hence cannot be trusted. As a lifelong fan, I recognise that the departures of Tevez and Ronaldo will affect the performance of the team. However, the advantage is that there will no longer be speculation around the future of the high profile players. This will lead to a better dressing room environment, a prerequisite for success. The manager would have prepared for such an eventuality, and I am sure he has replacements in mind, via the transfer market from within the squad. Rivals may be laughing at us now, saying nobody wants to stay or come to the club, but we will be the ones laughing come May 2010. Of that, I am sure.

The club’s debt has been a topic of much debate, but I think Man United is too big a club to do the Leeds way. Rival fans might be hoping for this to happen, but we are talking about one of the biggest sport brands in the world. The debt will be settled in time. I just hope that the money will be available for Sir Alex to make the changes he wants to see. The debt should not affect Sir Alex signing the players he believes are worthy of putting on the Manchester United jersey.

In Fergie We Trust.

This club has gone through a lot, and still rose from the ashes. Something as trivial as a couple of players, no matter how good they may be, cannot sound the death knell for the club, as some suggest.