The general opinion among political leaders, experts and others the UPA government took an unusually strange and adamant stand on allowing FDI in multi-brand retail trade. It refused to heed to unprecedented public sentiment and opposition from almost all political parties, baring the Congress Party, Nationalist Congress Party, Rashtriya Lok Dal and Rashtriya Janatha Dal, entire trading community, farmers’ bodies, experts and the public in general. Reports suggest that the UPA government became susceptible to powerful lobbying engaged by Walmart and other multinational retail giants to pressurise the Indian government to allow FDI in retail trade. It seems that through constant lobbying, they were able to persuade their home countries, especially the American government to exert pressure on the Indian government. Further, it is also reported they had also influenced American based rating agencies to plant news warning possible downgrading of India to negative rating unless India embarked on second generation reforms, including FDI in retail trade.
Now it has also come to light (as per the lobbying disclosure reports filed by Walmart with the US Senate) that Walmart has spent about $25 million (around Rs. 125 crore) since 2008 for its various lobbying activities, especially for allowing FDI in mutli-brand retail trade India.25 Moreover, it is suspected that in addition to the amount disclosed as expenditure towards lobbying, Walmart has reportedly spent huge amount as kick off payments to Indians. The revelation about spending huge amount by Walmart for lobbying to persuade the government of India to allow FDI in retail trade in India has caused utter consternation among a cross section of the people of the country. And bowing to opposition pressure, the government on 12.12.2012 announced a time-bound inquiry by a retired judge into reports of lobbying by retail giant Walmart to gain entry into India. But many believe that announcement that a retired judge would hold inquiry will be of no use. They feel that the inquiry should be conducted by a Special Investigating Team (SIT) under supervision of the Supreme Court or at least by a sitting judge of the Supreme Court. So, for the judicial inquiry, terms of reference should be broad based, otherwise it will be very easy to skip off and get clean chit to this giant company. Where is the guarantee that Walmart will not indulge in high voltage lobbying to get clean chit?
Walmart in fact was so sure of getting permission to carry on retail trading in India. While the other multinationals retail giants continue to wait for fuller access, Walmart has been making hectic ground work in various cities in India so as to make a grand entry once permission is given to open retail outlet. Moreover, it has expanding its joint venture with Bharti, an Indian conglomerate, which provides wholesaling and logistics—including to Bharti's Easy Day chain. The Public Interest Litigation filed in the Madras High Court by T. Vellaiyan, President, Federation of Tamil Nadu Traders' Association, has brought to light that Walmart has fraudulently entered into multi-brand retail trading even before the government notified FDI in mutli-brand retail trade.23 That is, in March and April 2012 year, -Wall-Mart Stores Inc, USA through its subsidiary, in collusion with two Indian firms, illegally invested Rs 455.80 crore in multi -brand retail in India by masquerading it as for “Services Sector.”
The only redeeming factor for the traders is that it is left to the States to decide whether or not to allow FDI in multi-brand retail trade. Yet it is feared that once they get a foothold in any part of the country, Nevertheless, according to leaders of political parties, a change of government in 2014 or even earlier might see scrapping of the decision to allow FDI in retail trade. The general temper of political opinion in the country on FDI in retail trade was sounded by AIADMK leader. V. Maitreyan in the Rajya Sabha on 06.12.2012 as follows: “If the UPA wins this vote, it will be the victory of the UPA’s maneuverability, not of the FDI policy which has been opposed by a majority of parties in the House…The people will reply in the 2014 polls and I give a solemn assurance that the next government that comes to power will reverse this decision of the UPA.” Senior BJP leader Murli Manohar Joshi has said that foreign direct investment in retail would be scrapped if NDA is voted to power in 2014 general elections.26 Sharad Yadav, Convener of National Democratic Alliance (NDA) on said that if NDA is voted to power in general election of 2014, it will reject the current notification of allowing FDI in Retail Trade.27 On 11.12.2012, the CPM General Secretary Prakash Karat, warned that left parties would not allow even a single Walmart outlet to be set up in the country.
In sum, today, the entire trading community is totally agitated and frenzied over the government’s notification allowing 51% FDI in multi-brand retail trade. Nevertheless, they feel confident that eventually the decision to allow 51% FDI in multi-brand retail trade will be scraped. Traders say that they are prepared to sacrifice to attain the goal of scrapping the notification on FDI in multi-brand retail trade. Traders also feel that it is the duty of every Indian to fight to liberate the country form falling into colonial control under the multinational corporations of America and the Western countries. According to them, the fight against FDI in retail is akin to second freedom struggle. In short, the general consensus is that the decision to allow FDI in muti-brand retail trade needs to be scrapped. Time alone will tell, what is going to happen!
Deccan Herald, Dec.16, 2012.
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