After SP and Left, Nitish too rejects FDI in retail

Virtually the entire political spectrum of the country— opposition, allies and even some Congress Ministers — have questioned the rationale for allowing 51 percent FDI in multi-brand retail trade. Many Congressmen also seem to feel that the decision to allow FDI in multi-brand retail is untimely. The opposition parties are united against FDI in multi-brand retail trade. The Communist parties have consistently opposed FDI in general, and retail trade in particular. The Trinamool Congress and Samajwadi Parties have reiterated their opposition to 51 percent FDI in multi-brand retail trade. Now the Bihar chief minister and JD (United) leader Nitish Kumar has vehemently opposed foreign direct investment in retail. But it is quite distressing to note that the Government seemed to be unreasonably adamant in going ahead with building consensus to open up multi-brand retail trade to multinational retail giants. When India got independence from the British in 1947, the leaders had promised to make India self-reliant; they had told that India will use its own resources to build a strong country and provide Indians all avenues and means for achieving the goal of respectful living. More than half a century has lapsed; instead of becoming a self sufficient nation India has now become dependent on FDI for survival. Many argue that the relevance of globalisation and liberalisation have become a question mark even in the neo-liberal developed market economies and therefore India has to be more cautious in following vigorously the path of neoliberal reforms. Evidences from various parts of the world indicate that widespread emergence of big format retail super stores have lead to extensive ruin of retail stores/shops thereby resulting in the loss of employment and livelihood to millions of persons involved in retail trade. Research findings have exposed that large scale unemployment has proved to be a social dynamite. That is, increase in unemployment leads to a series of social problems, like rise in poverty, alcoholism, domestic violence, indebtedness, suicides and crime in general, leading to a chaotic situation in the society. In sum, the inescapable conclusion is that any disruption of the prevailing system of retail trading will affect all sections of Indian society. FDI in retail trade will not serve any purpose. It will do more harm than benefit the people, especially to the unorganised/informal retail sector, which is a vital source of occupation and livelihood for the multitude unemployed people of the country, besides being the cushion for those who are displaced from their occupations/employment for various reasons.

Dr.C.Murukadas, The Times of India,  July 30,2012