IS THIS STATISTICS REAL?
Sign in

IS THIS STATISTICS REAL?

Commerce Minister Anand Sharma was at at his eloquent best facing a barrage of questions from Burqua Dutt. He was citing the examples of China Russia, Malaysia not to speak of north American Brazil and Mexico which had opened up retail for FDI where millions of jobs have been created and hold your breath, poverty has been gradually eradicated. He was questioning quite rightfully the wisdom of BJP in blindly opposing this reform where as they had during their stint in 2002 talked about 100% FDI in multi brand retail. What the Prime Minister should have done, his commerce minister did admirably well, arguing the case of the Government which was also done by Salman Kursheed who maintained that the government of the day had the mandate to decide on policy issues without consent from Parliament. PM as usual was keeping silence, leaving the job of defending his embattled government to his Ministers. So was the case  when Nuclear bill was tabled amidst a no confidence motion. IT has been the habit of the PM to table contentious issues with a proper debate and withdraw . That is the nature of this man and it is a misfortune of India

I could understand that given the limiting of opening of multi brand retail stores onlly in citites with more than a million population, which is about 50 dd and leaving about 25 due to oppostion from WB,Tamil Nadu, Gujarat etc, it is probable that present day kirana stores will be able to buy goods at discounted retail prices from these MNC stores to distribute them to rural and other urban settlements where the reach of these MNCs have been banned presently.  To that extent probably there could be no loss of jobs. Kirana Stores provide the last mile connectivity in a vast country such as ours and unless the corporate wolves deprive them, they could benefit. But the creation of jobs is questionable. In countries which Sharma quoted, retail is not as large an employer as in India. Hence the ministers' claims could be a tall order. Investment in back end infra structure could also be fruitful but again druing this commerce, there will definitely be exposure of Indian Banks and Financial institutions in sanction of loans, guarantees to these multinationals. After all the 2G Awardees got loans pledging their licences. That is again money belonging to people. The india specific mandate to procure 30% goods from SMEs is supposed to be against the spirit of WTO. Such issues need to be clearly spelt out. We should have adequate safeguards before embarking in to relams of fantasy which is what the UPA_II government indulges in.

start_blog_img