Foreign Direct Investment in Retail

Union Cabinet has decided to permit Foreign Direct Investment upto 51% in retail sector. When India got independence from Black rule of British in 1947, leaders of the country promised to make India self dependent , they told the Nation that they will use its own resources to build India strong and give Indians all comforts which they deserve for respectful living.

More than half a century has elapsed; Indian instead of becoming a self sufficient Nation has now become dependent on FDI for survival. Indian leaders go for foreign tours begging FDI in India in different sector. Perhaps Indian leaders have defined Independence and self dependence as per their comforts.

Positive thinkers in political circle often say that Indian in near future will lead the world but they fail to realize that Indian can survive only on the fund infused in India by Foreign Institute Investment (FII) and its economy depend on Foreign Direct Investment.(FDI).

Leaders of UPA and great economist say that FDI in retail sector will create four million jobs; some over enthusiastic leaders in the government say that FDI in retail will create one crore new job opportunity and give enormous benefits to farmers as also to consumers who will get goods at low price.
They (UPA leaders and protagonists of FDI in retail)) do not talk of how many Indians will become unemployed when giant of retail sector like Wal-Mart of USA or Tesco of Europe come in India. If Walmart and Tesco like companies can create millions of jobs in India, why not domestic companies in retail sector do the same thing. And further if these companies can create job heaven for India why they failed to create job heaven in America and Europe where people are crying for jobs.

Yes I also agree a few thousands of educated youth will get job in retail chain and get handsome salary too , a few corporate brokers will also get opportunity to earn considerable amount of brokerage but millions of poor and middle class families who survive on small scale retail business will be rendered workless and constrained to starve or become slave in the hands of English people, the same slavery which their forefathers had to adopt and practice under the colonial rule of British before we got freedom in 1947.


Stock Market in our country depends on FII and when FIIs start selling stock, the entire market bleeds and it is ultimately the weak Indians who become the victim and who have to suffer huge losses on their investment. Rahul Gandhi does not advise Manmohan Singh led government to make stock market self reliant and not depend upon foreigners.

Big corporate depends on External commercial Borrowings and their business depends on exports and imports. When other countries commit economic blunder, they economy collapses and ultimately India also become victim even if our country is headed by great economists. It is crystal clear our survival now depends less on our performance and less on our intrinsic values but more on foreign buyers and sellers, FDI and FII and the policies of the world.

Our leaders are very much hopeful that if FDI is allowed in retail sector, millions of job will be created and poverty of Indian rural folks and farmers will be eliminated or at least help in reduction of poverty of India.

Here It is worthwhile to mention here that the Walmart which originated and prospered in USA failed to create considerable job opportunities in USA and Tesco which has its root in Europe failed to create even a lac job opportunity in Europe. USA is facing the problem of unemployment and passing through bad days. Financial crisis which erupted in USA and Europe in the year 2008 still persists.

Poverty level in USA has gone up. People of USA has left farming and have to depend on other countries for even vegetables , pulses, wheat ,rice and other cereals . People of USA have to depend on India and China even for packed food, junked food, cloth and goods of daily uses.


To open the eyes and ears of leaders of UPA government I submit hereunder the conclusion arrived at by an renowned economist Mr. Stephen M Ciccarella Jr. who is a professor in Cornell University - Department of Economics; Public Policy Institute of California .this is the abstract and finding arrived at by this great men after prolonged research on the life of US farmers, poverty in rural areas of USA before and after entry of Walmart retain chain in US market.

Abstract:
We estimate the effects of Wal-Mart stores on county-level retail employment and earnings, accounting for endogeneity of the location and timing of Wal-Mart openings that most likely biases the evidence against finding adverse effects of Wal-Mart stores. We address the endogeneity problem using a natural instrumental variables approach that arises from the geographic and time pattern of the opening of Wal-Mart stores, which slowly spread out from the first stores in Arkansas. The employment results indicate that a Wal-Mart store opening reduces county-level retail employment by about 150 workers, implying that each Wal-Mart worker replaces approximately 1.4 retail workers. This represents a 2.7 percent reduction in average retail employment. The payroll results indicate that Wal-Mart store openings lead to declines in county-level retail earnings of about $1.2 million, or 1.3 percent. Of course, these effects occurred against a backdrop of rising retail employment, and only imply lower retail employment growth than would have occurred absent the effects of Wal-Mart

If anyone is inclined to know more about increase in poverty in USA caused by Walmart chain of retail shops or change in fate of farmers in USA after entry of companies like WalMart, they should thoroughly read the book namely “Concentrated Poverty in America” to understand the pre and post Walmart era in USA.


When USA could not gain much from Walmart , how Indian leaders can dream of heaven by allowing Walmart in India is a million dollar question to be answered before accepting the entry of devil like Walmart.

One may also refer the said book to have a fair view of the positive and negative impact on American economy , American retailers, farmers and Super Markets and American farmers and American society .


Farmers in America and European countries have left farming and this is why agricultural production in these countries is gradually coming down and down. Unemployment has become a headache for US administration and other developed countries. By adopting FDI in retail , India is going to invite a chain of problems; farmer may discard farming due to lesser realization of their products , existing retailers will be reduced to zero and local vendors will become slave in High profile retail chain sponsored by Foreign based Walmart and Tesco.

Last but not the least, Rahul Gandhi asks loudly people of Uttar Pradesh, “How long you people will prefer going Mumbai for begging”. He does not think it fit to ask cabinet ministers and Doctor Manmohan Singh “How long India will survive on FDI and FII” . He does not ask Chief Ministers of Congress Party led states, how long they will go to Bangalore or Hyderabad or Mumbai or Delhi for higher study and for attractive jobs. Lacs of educated youth from the state of Rajasthan, Maharashtra, Kerala, West Bengal, Harayana are working in IT sector in the state of Karnataka, Andhra Pradesh and also in foreign countries.

Though present government in Delhi has hurriedly taken decision in cabinet without taking into confidence even state governments and renowned economists and well wishers of the country, I still request prominent leaders including that of opposition parties to have adequate debate and discussion on such vital issues in Parliament or outside the Parliament before the cabinet decision becomes the law of land . I like to reiterate here that such crucial decision has the potential to make or mar the future of Indians and that of India.I do agree that FDI may be necessary to cope with the repercussion of trade deficit and fiscal deficit, but if magnitude and intensity of pain of unemployment reaches dangerous level, crime will increase to disastrous level when all powerful person and big fish will try to finish weak and small fishes.

Are people serving outside are beggars?

Illiterates or literates, educated or uneducated, skilled or unskilled who are going to earn money in other states for earning their livelihood cannot be termed as beggars as loudly said by Rahul Gandhi in Phulpur in UP yesterday. Rahul Gandhi means to say that there are so many Indias in India, India is not one but many, UP is different from Maharashtra, and so on …..

As per Rahul philosophy, Indians who are going to serve other countries either as service man or as businessmen are going for begging in other countries. As per Rahul, Indians should stop going abroad for begging and search employment opportunities in India itself or starve to death. As per Rahul, Indian students should stop going abroad for study too and try to get education in India itself. Rahul and his entire family members got education in foreign countries because they belong to ruling class.

I suggest lovely and young Rahul; he should be angry not on Mayawati but ask his parent and grand parent who ruled this country for more than 50 years and who ruled UP and other states for decades together. He should ask his parent why all of them failed to make India so much strong that people of India started going abroad for earning their livelihood.

Even now Rahul Gandhi and his mother are almost ruling the Nation for last eight nine years, why they have completely failed to make India capable to retain all Indians in India and why she is following the path of reformation and globalization.

Rahul should really rebuke Manmohan Sing the Prime Minister who is called as Doctor in economics but whose economic principles have completely failed to stop inflation and price rise, failed to prevent growth of unemployment and failed to remove fear of terror attack. It is dirty politics and mindless economics of Manmohan led government that India’s image is getting tarnished in foreign countries and it is their policy of globalization that Indians are constrained to either go for begging in other parts of not only India but other parts of the world.

Before pointing out his accusing fingers towards Mayawati and other states ruled by Non Congress party, Rahul should introspect and judge the performance of his government at center and that of his party government at many other states. I condemn Rahul for his divisive politics.
Why the state of UP and Bihar is so much backward?
Is it Mayawati who spoilt UP in four or five of her rule?
Who spoilt Bihar?
And I dare ask so called young brigade leader Rahul Gandhi to say more honestly and more clearly, whether all states presently governed by Congress Party are self sufficient and self dependent for employment and earning livelihood?

Rahul and Raj Thakre are two sides of the same coin. Both of them are anti federal structure of the country and attacking sentiments of innocent Indians for their vote bank even if the same results in breaking the unity and integrity of the country. Both are trying to disturb communal and regional harmony.

People from all states move from one state to other for employment or for study without any hesitation because they treat all states as equal and they do so as per spirit of the Constitution in our country. But mean minded politicians are trying to create animosity among people of various states to serve their vested interest.

Rahul Gandhi says that Upites should stop going to Maharashtra for begging. Raj Thakre says that Upites or North Indians are burden for Maharastra.
What is difference between Rahul Gandhi and Raj Thakre?
Such mean minded politicians are not talking of performance exhibited by them and by their parties but they always blame opposition parties for performance not done by them or for their mischievous works, for their involvement in corruption. Rahul in UP is blaming Mayawati and his colleagues at Center are blaming BJP and RSS for evil works of UPA.
Indian voters will definitely teach Congress Party a lesson; this is my expectation from Indian voters.
Voters should not allow person like Rahul Gandhi to disturb peaceful Inter-state relations. People of India should protest politicians like Rahul Gandhi who through their evil speech are trying to create regional feelings among Indians. Media men should condemn politicians who are striking at the very rood of federal structure of the country.

If Rahul Gandhi and Raj Thakre like politicians are allowed free speech , day are not far when Rahul will ask students of Bihar , Jharkhand, Maharashtra and other states not to go to Bangalore for study. Days are not far when Rahul like politicians will ask residents of other states not to depend on Surat and Ahmedabad for their cloth needs. Days are not far when politicians like Rahul Gandhi will ask people of Maharashtra and Gujrat not to depends of Bihar and Jharkhand for their needs of coal, iron and other minerals.
It will not be an exaggeration to say that politicians like Rahul Gandhi are not restrained and condemned; they due to their inexperience or lack of maturity or due to their mischievous intentions will break India like erstwhile Soviet Union.