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Topic : FDI in retail : A rational view
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Created by : SR Sham Sunder, CEO/MD/Director Technoaid  | 09 20 2012 05:12:13 +0000
Activity:  1541 views;  last activity : 09 20 2012 05:12:22 +0000
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Yes! State leaders can make "Mota Maal" Vs No. Central Leaders can make "Mota Maal" or none can
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I welcome FDI in retail both as a economic necessity and as a measure towards reducing inflation.

FDI can bring competition between MNCs and there will be price reduction. No doubt traders will be affected due to price reduction. More hit will be middlemen.

However, when traders and middlemen get hit, consumers benefit.

West Bengal for instance, prides itself in protecting labour class and common people. If this group can be saved from exploitation by traders and middlemen, then why not welcome FDI?

Speaking politically, Manmoham Singh has given options to States to welcome MNCs.  Will the politicians at State level simply approve FDI in their state?  We must be dreaming..

They will extract their pound of flesh either for personal fund or party fund...

This decision therefore has many plus situations for the States.  People benefit; exploiters suffer, processing infrastructure is strengthened and the industry reaches an organized state.  More than everything, there is "Mota Maal" for state leaders.  

Then what Mamta Di/Yedyurappa (Shettar)/Nitish/Jayalalita/Yadav are fighting for?

  • For Mamta, she can project acceptance as benefiting labour class.  
  • I will put my money on Karnataka accepting FDI in the guise of a progressive state.  
  • Bihar is a large state.  It should benefit out of strengthening infrastructure and increased employment.  Food grain processing there will pick up.  Lalloo's vote bank may get hit too in the process..  
  • Jayalalitha has the capacity to project herself in the given situation and take another step forward towards prime ministership.  
  • It is time Mulayam places Akhilesh as a progressive man while benefiting large population of UP.  He can extract maximum benefits from Center too.  

Any policy or law can be converted as a positive strength.  We have seen such transformation quite often.  TN Seshan converted a seamingly useless position into a large weapon.  Karnataka's Lok Ayukta did it.  Abdul Kalam brought about a contrast between a dull president and a proactive president/teacher.  There are innumerable instances...

It is not an easy road to MNCs but investor sentiment picks up and India will definitely benefit out of this.  

I hope people who matter look at things the way they should be looked at...

By SR Sham Sunder, CEO/MD/Director Technoaid  | 09 20 2012 05:23:48 +0000
Leading ITES/BPO Consultants
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