Indian Political stage appears to be deteriorating with every passing day. The recent FDI debate and its results in both..
FDI in retail will lead to unemployment - K.N. Govindacharya

Union cabinet has cleared 51% Foreign Direct Investment (FDI) in
Multi-brand retail sector. Even though a minimum limit of 100
million US Dollars has been recommended by the committee of
secretaries, it doesn't alleviate the risk on retail sector due to
this decision. The government is claiming that this move will
create employment opportunities, but anyone with some understanding
and knowledge of how FDI or the arrival of corporate houses in
retail sector has affected employment in other countries, can judge
how false this claim is. It'll only raise the unemployment
rate.
Is is a mere coincidence that when US' Foreign Minister Hillary
Clinton came on her India visit, then only the committee of
secretaries approved this proposal of FDI is multi-brand retail.
Wallmart is the biggest company in this field and Hillary has
served on the Board of Directors of this company for long years,
since when her husband Bill Clinton used to be the governor of a
state. Wallmart has exploited its relations with Hillary to make
India allow this FDI. Wallmart has been known to sabotage the
retail business in so many countries, but Hillary praised it in
2004 while addressing National Retail Federation saying that she
learnt a lot from her association with Wallmart.
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हिंदी में पढ़ें : खुदरा क्षेत्र में एफडीआई से बढ़ेगी
बेरोजगारी - केएन गोविंदाचार्य
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It is noteworthy that Mrs. Clinton got financially benefited
from Wallmart. She used to get 18000 USD annually as fixed sum and
additional USD 1500 per meeting that Hillary attended. Till 1993,
Hillary had in possession of shares worth USD 100,000, as per the
reports published in US media. This proves the point that the
relations of Hillary and Wallmart have paved the way to this
decision by Indian government so that the interest of US
companies are secured no matter if Indian small retailers suffer
due to it.
This decision will potentially create unemployment as many small
scale retailers will have to shut down their business due to not
being able to compete with the prices offered by these foreign big
retailers. Once their monopoly is established, these foreign
companies will do as they desire and will hurt the economic
structure of the country. The fact that the retail business is
worth Rs. 400 billion USD is India and is growing at an annual rate
of 13%, is the reason why Wallmart and other foreign players are
interested in India.
Now, how is Wallmart a threat? Because Wallmart's own business is
worth USD 400 billion, i.e. equal to the business of entire Indian
retail market. Wallmart employs 2.1 million people worldwide. No
wonder, its coming to India will pose a direct threat to the 40
million Indians who are employed in retail sector. They'll
potentially go unemployed. Not only that, even the micro, small and
medium scale enterprises of India will suffer due to this decision.
They currently have a good growth rate but with the arrival of FDI,
it will become a challenge for them to secure their survival.
When organised retail was allowed in retail sector, even at that
time government had made tall claims of benefiting farmers and
consumers, but the truth is there for all to see. Indians rejected
the move largely. Some players had to wind up their business. Even
then the government wants the foreign players to come here to serve
US interests. Undoubtedly, this move is not only insulting the
opinion of a majority of Indians, but also creating fresh troubles
for a large number of people. It must be opposed at every
level.
Article courtesy: K N Govindacharya
Translation: IBTL
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