FDI In Retail: Are We Prepared? Is India Ready?

The recent news headlines state "Better price to farmers, Lakhs of new jobs, relief to consumers".... Very Interesting!

Yes indeed, A revolutionary leap for Indian Economy. The Ministry of Commerce and Industry, Government of India came out with yet another innovative approach in its economic reforms. Of course, with the world as a global village and LPG (Liberlisation, Privatisation and Globalisation) in every area, there is very little we can do about FDI (Foreign Direct Investment). We already started thinking globally to act locally. So the idea of denying FDI seems to be impossible.

Wheel of Retailing

But all I would like to ponder loudly is, are we prepared to face the consequences which FDI can pose on Indian Rural Economy? Past 65 years of Independence, did India do its home work? Now the big question for all of us is "IS OUR INDIAN ECONOMY READY FOR FDI?"

Catch Points-

S.no.	Ideas floated by the Govt. with Confidence	Doubts Raised by the People
1.	Better price to Farmers	Is the farmer’s harvest, produce protected from the vagaries of the climate. Are the crops insured and minimum compensation guaranteed?
2.	Lakhs of new jobs	How is indigenous unskilled labour equipped with their skills? Are we ready with their basic education for them to understand technology? In the light of new glossy job opportunities promised in the retail sector, how are we protecting and retaining traditional farming?
3.	Relief to consumers	In the already existing inflationary conditions, how are we controlling price rise? How are we protecting and guaranteeing the purchasing power of the common man?
4.	Advanced Technology	Are our farmers ready to adopt, purchase and use the new gadgets? Are they financially sound? Is the Govt. ready to provide uninterrupted power supply to use the new gadgets?

Let us analyze the situation both at Macro level and Micro level

BENEFITS TO FARMERS

Villages of our country are the back bone and hub for primary occupations. Indian economy is dependent 70% on the agro-based production. Over the years Indian economy has witnessed the crude realities faced by the farmers. Despite all this, very little is done to take care of the welfare and retaining farmers in their traditional occupations. What the Govt could not achieve in the past 65 years, they expect wonders to happen to the farmers with FDI involvement?

In the age and time, when the youth is getting attracted towards urban life styles, secondary and tertiary sectors, how are we protecting our traditional farming?
When the FDI enters rural India, how do we ensure that the youth will be focused and devoted towards the primitive, unprotected and uncertain agricultural employment?

With the FDI and the improved agro-processing methods, are we in a position to guarantee the farmers their minimum yield?
Are we planning to ensure the quality produce till the harvest season?
Will it take the measures to protect them in having reasonable, minimum returns for their investment?

FARMERS PRODUCE WILL REACH THE MARKET DIRECTLY

Farmers produce will reach the store directly, thereby reducing the wastage. We already experience farmer's market or rytu bazaar. How many farmers are really able to reach the end market to sell their products?

Can we certainly say that we have done away with the middle men!

FARMERS WILL GET THEIR DUE IN THE FORM OF HIGHER PRICES

How far is it possible, when the primitive farmers, living in the remote rural areas are not equipped with the marketing strategies?
Is the Govt. providing, protecting and educating them to indulge in direct marketing?
Are our farmers well equipped to handle the primary and tertiary sector responsibilities jointly?

The issues to ponder is - Is the Government now shirking off their responsibilities to the farmers, after having given their tall 'Election promises' over the years? If so, are they therefore accepting their failure in this sector?

CREATING MORE JOBS

1. OVER ONE CRORE NEW JOBS WILL BE CREATED

Are the jobs identified are in the primary sector! If these are created in the secondary and tertiary sector, are we dreaming to create cloth without cotton!

Has the Indian govt. taken any steps to enhance skill development in the rural youth?
Do they have the confidence, personality and skill to become entrepreneurs?

2. FDI BACKED RETAILERS WILL SOURCE 30% OF THEIR PRODUCTS FROM SMALL SCALE SECTOR

FDI has to necessarily depend on the small scale sector. They do not have any choice. The question here is, to stock their shelves, are they looking at Indian produce or the foreign produce. If the competition is between Indigenous versus Foreign, what will be the fate of our primary sector?

Here it is wiser to say that our small scale sector is not dependent on FDI but vice versa.

3. NEW MANUFACTURING OPPORTUNITIES WILL OPEN FOR THE NATIONS MICRO, SMALL AND MEDIUM SECTORS

Before stressing on this area, how far has Indian Govt. protected the welfare and allowed the micro, small and medium enterprises to withstand while competing with the International brands? Let us understand this with a small example. Did the Indian market create any opportunity in the name of subsidy and concessions for our traditional handicrafts ( Kondapalli toys) to face competition from the International brands( Barbie Doll)?

4. NATION'S YOUTH WILL BENEFIT FROM NUMEROUS EMPLOYMENT OPPORTUNITES IN THIS SECTOR

How far is our university education focused on skill development? Are we trying to focus on employer development or employee development?
When our focus is still on employee development, won't our excessive dependence on the foreign markets become a threat for our own existence?

5. BENEFITING THE CONSUMERS

This would result in flourishing of Indian Economy. If the Indian Economy moves on to the tracks of uniform development, no doubt, there is a growth and development happening.

Is this whole process of FDI is just another name in replacing the old Zamindari system or Capitalist system of economy?
Then, are we willfully inviting the foreign nations into our Independent India?
Are we destroying our economic well-being from its roots?

Is it not necessary for us to look before we leap? Else the Consequences will be,

Indian market will force itself in depending on imports for even the basic agrarian products.
Unable to withstand the massive shop lifting already happening in Indian retail, what if the foreign retailers back out?
Will we be breaking our back bone by destroying our rural India.
The overall purchasing power of the economy might be at stake.
The Rupee value at the intenational level may further deteriorate.
The threat of inequalities of incomes may be bad to worse.
Are our politicians opening few more doors for their new scams and innovative methods of exploitation?

Benefits

If the possible and expected results are achieved, Indian Economy can grow tremendously.
The sudden and unexpected windfall fortune on the rural India in the name of FDI will bring overall prosperity to the nation, which is welcoming.

The expected Revolutionary leap for Indian Economy will be achieved only if, Our law and order, judiciary and Democratic Government are ready to face the challenges, without mudslinging; When the order of expression of the people is protests, bandhs and agitations, can we protect the Crores of investments and the invaluable human life on this sub-continent?

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