The push for allowing FDI in retail is based on false claims that the Central government has been repeatedly making. In the U.S., retail giant Walmart has a turnover of $400 billion, and employs 2.1 million people. The Indian retail sector, too, has a turnover of $400 billion, but employs 44 million people. In England, an enquiry revealed that instead of creating new jobs, retail giants were throwing out employees. The Indian economy needs reform but more importantly, there should be focus on the poor.
Salman Ghani,
Okhla
C.P. Chandrasekar's article “The retail counter-revolution” (Nov. 30) was an eye-opener. The implementation of this foreign-capital-intensive policy will affect a sizable population in retail and wholesale trade. The government needs to take informed/tested policy decisions conducive to supporting the livelihoods and prosperity of all sections of the population.
P.S. Venkataraman,
Bangalore
Huge retail chains have caused sharp reductions in the number of traditional domestic retail outlets in various countries. When the U.S. population was 15.5 crore in 1951, there were 1,600,000 retail counters. It came down to 1,145,000 in 2011, when the population has gone up to 31.2 crore. In Thailand, there was a reduction to the tune of 30 per cent in the 10 years after opening up retail to FDI.
A.G. Rajmohan,
Anantapur
The government may be able to reduce inflation with FDI in retail, but should it be at the cost of small and medium-scale traders? Huge retail stores are not suitable for our country for practical reasons too. Unlike the U.S., low and middle-class families in India rarely have cars that can take them to the far-flung supermarkets. Also, most families buy in small quantities according to their needs and frequent trips to such stores will not be viable to them.
N. Ramamurthi,
Chennai
Anna Hazare has rightly said that the move for FDI is not in India's interest. He wonders why the government is not listening to the voices of the Opposition and mainly, the people. Many States have opposed FDI in retail and have said they will not allow such shops. Why is there so much insistence on FDI? The British came for trade but then ruled us for 250 years. Is the government inviting “them” to make us slaves again?
Hansraj Bhat,
Mumbai
No one can justify unfair labour practices, be it by Walmart or by our friendly neighbourhood Udipi hotel which employs child labour. However, nothing can hide the fact that a large section of middlemen and traders in India have traditionally indulged in adulteration, hoarding, tax evasion and black marketing. A large nation of a billion people and more needs the efficiency of scale and technology in every sector. The protests we see are similar to the ones in the 1970s and 1980s against computerisation.
N.K. Raveendran,
Bangalore
A vast majority of people in India do not buy commodities in large quantities and stock them. Instead, they buy for their daily needs only and, as such, there will be enough space left for the small shop owners and vendors. Also, the entry of retail giants may induce competition and force the local traders to give quality products at lower prices. Besides, the government has made it amply clear that it is for the State governments to decide whether to allow entry to the retail giants. Stalling Parliament proceedings is not a solution for anything.
M.V. Joseph,
Thiruvananthapuram
Democracy is about respecting people's opinion on contentious issues. When the major opposition parties, some alliance partners, a few of the ruling party members, several Chief Ministers and crores of traders oppose FDI in retail, the ruling party should not be adamant about introducing the Bill even at the cost of stalling the winter session of the Parliament.
Rameeza A. Rasheed,
Chennai
Inflationary pressure is caused not by the failure of the government or the Reserve Bank of India but by corrupt middlemen. Through the introduction of FDI in retail, the government will bring these middlemen under indirect regulation. One should not forget that India is recognised as a world power now because of the opening up of our economy two decades ago.
Sagar Pralhad Patil,
Nandurbar
The entry of retail giants will make consumers aware of the quality of service they should expect from shops. Farmers will also become more quality-conscious. I have a question to the retailers who complain: Can they declare with a clear conscience that they are not responsible for the plight of poor farmers while the consumers are complaining of high prices?
Edwin Jenson N.S.,
Chennai
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