FDI in retail ..... Unwise and untimely

I doubt the sincerety of the Congress party in allowing FDI upto 51% in multi brand retailing. The timing stinks.

The economy is in a mess. Government is cornered on corruption. It has given up on controlling inflation. Its credibility is at the lowest. Anna Hazare is waiting to pounce. It faces a whitewash in UP. Some of its ministers are in jail. The PM is a lame duck. And the parliament is in session,with opposition belligerent.

The Congress needs a diversion badly. It knows all the political parties are against it and there will be a big hue and cry that would drown the protests against all the other issues. And that is why they went ahead with the hasty decision to allow FDI in retail.

The western world doesnt have money nor do they have the markets with purchasing power anymore. The western retsilers desperately need the Indian market than we need them. We opened organised retail to Indian Corporates a while back and it ended up in disaster. Neither the consumers nor the farmers benefited. The same arguments that is offered in favour of FDI was trotted out then. But the ground reality was different. Hence, my pessimism on the new initiative. Also, the current food inflation has its roots in the decision to allow corporates to enter organised retail.

That the indian supply chain fron farmers to consumers is rotten is beyond doubt. But is the FDI route the solution? I doubt.

What is eequired is an initiative involving the private sector in streamlining the supply chain.

But this callous government, an uncaring PM, a secretive irresponsible party chief and a psychofantic party is interested in filling its coffers at the expense of common man.