Employment generation in the formal sector
Employment generation in the formal sector in India has been very sluggish in recent years. As a result, many unemployed youth all over the country have taken to self employment, particularly in the retail sector. These informal retail sector establishments are successful, to a certain extent, only in the big cities. In the smaller towns and villages retail units have a precarious existence. These tiny entrepreneurs find it difficult to earn enough income from their business to meet even the bare necessities of life. So, many of them migrate to big cities in search better pastures. But only a small proportion of them become successful after migrating to the city. The tiny entrepreneurs suffer from various bottlenecks, particularly lack of finance. Since the scheduled commercial banks do not come forward to render financial assistance, they are forced to borrow at high rates of interest from private lenders and run the business and earn a meager income. But, most of the tiny units/vendors have regular customers, including upper-middle class and rich people. If FDI is allowed in the retail sector, it will wipe out many of the smaller Indian retailer chains and the small retailers like the small provision shops and the push cart vendors, who thrive largely in the residential areas around upper-middle class and richer sections of the society. The estimate that FDI in retail trade will generate 10 million jobs is not realistic. But it will certainly destroy millions of tiny retail entrepreneurs. Therefore, India has all to lose and nothing much to gain by allowing higher FDI in retail. This decision of the government has been done only to favor the major retail establishments in the West and in the USA. India has no need for FDI in retail sector; there is no need for the foreign retail chains in India. Let wisdom prevail upon our leaders!
Dr.C.Murukadas
Employment generation in the formal sector in India has been very sluggish in recent years. As a result, many unemployed youth all over the country have taken to self employment, particularly in the retail sector. These informal retail sector establishments are successful, to a certain extent, only in the big cities. In the smaller towns and villages retail units have a precarious existence. These tiny entrepreneurs find it difficult to earn enough income from their business to meet even the bare necessities of life. So, many of them migrate to big cities in search better pastures. But only a small proportion of them become successful after migrating to the city. The tiny entrepreneurs suffer from various bottlenecks, particularly lack of finance. Since the scheduled commercial banks do not come forward to render financial assistance, they are forced to borrow at high rates of interest from private lenders and run the business and earn a meager income. But, most of the tiny units/vendors have regular customers, including upper-middle class and rich people. If FDI is allowed in the retail sector, it will wipe out many of the smaller Indian retailer chains and the small retailers like the small provision shops and the push cart vendors, who thrive largely in the residential areas around upper-middle class and richer sections of the society. The estimate that FDI in retail trade will generate 10 million jobs is not realistic. But it will certainly destroy millions of tiny retail entrepreneurs. Therefore, India has all to lose and nothing much to gain by allowing higher FDI in retail. This decision of the government has been done only to favor the major retail establishments in the West and in the USA. India has no need for FDI in retail sector; there is no need for the foreign retail chains in India. Let wisdom prevail upon our leaders!
Dr.C.Murukadas
No comments:
Post a Comment