Wal-Mart eyes 51% stake in new India retail arm

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. The Indian government has declared that the entry of multinational retail chains would enhance efficiency that will benefit the producers and consumers. Dr.Manmohan Singh, the Prime Minister of India claims that FDI in multi-brand retail, €œwill bring modern technology to the country, improve rural infrastructure, reduce wastage of agricultural produce and enable our farmers to get better prices for their crops. But 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, particularly in allowing foreign retail giants into the country. The claim that the Indian farmers and consumers would get more from the multinational retail giants than what they are Despite stiff opposition from various quarters, on Tuesday, January 10, 2012, the Government of India notified 100 percent foreign direct investment (FDI) in single brand retail allowing the setting up of wholly owned shops by global retail chains. And finally succumbing to the lobbying by multinational retail giants and pressure from the American and European governments, on September 14, 2012, the Union Cabinet took the ill-advised decision to allow 51 percent FDI in multi-brand retail trade, much against the sentiments and wishes of almost the entire spectrum of political parties, the entire trading community, and, of course, the vast majority of the people of the country. getting today is nothing but fallacious propaganda by the Indian government. Unmindful of the above developments, the Indian government showed indecent haste and notified the rules to permit foreign retail chains into the multi-brand retail trade. The notification has evoked strong condemnation and disapproval from all sections--political parties, traders€™ bodies, farmers associations, experts and the public in general. No wonder the US retail giant Wall-Mart has said it wants to have a 51% controlling stake in a new front-end retail company for which wholesale partner Bharti Enterprises would be a "natural partner". Their ultimate goal is to conquer the entire retail trade in i India. Therefore, economic colonialism is going to take root slowly. Therefore, the government should not stand on prestige and annul the decision to allow FDI in multi-brand retail trade.
Dr.C.Murukadas, The Times of India, Sep. 28, 2012