Since the commencement of the winter session of Parliament on 22nd of November, 2011 the Parliament was debating on the FDI in India. In the midst of rising inflation the government has seen FDI as a lender of its last resort. The concept of FDI though very simple has a very big advantage and also a disadvantage of its own. The government has proposed 51% investment in retail sector claiming that this is the only option to bring inflation under control.
With "Walmart" the megastore entering the market, retailers from all over the country started opposing it saying that this will lead to shut down of their business. And the retailers are right at their place. If the history of the megastore is seen we can see that in whichever country Walmart has opened its store they have attracted a lot of consumers and the retailers in those countries had to forcefully shut down their business to avoid losses. The concept behind Walmart is so that it purchases the goods directly to avoid transportation and other costs. True that through this inflation will come under control. On questioning Finance Minister about Walmart after the protests started he said that this will bring down the inflation rate and will provide employment opportunities to people across the country. Now has anyone thought how much employees will work in a particular mall of Walmart? It is only 272. Yes, only 272 workers will work in a particular mall of Walmart creating hundreds and thousands of jobless people around the country. Though this concept of Walmart will benefit a larger group of buyers but what about those people who have business or who are likely to start a business very soon. Soon there will be a huge group of educated unemployed but this group won't be more than the larger group of buyers in the market who are likely to benefit from this megastore. Since the buyer group is larger than the business group they are in a condition to get attracted by this concept of Walmart and they can even vote for UPA government in the upcoming election of 2014.
There is still time for the 2014 General Elections which is seeing the NDA government as the ruling party in the centre. So making complete use of the available time the UPA government has come up with the idea of 51% investment of FDI in retail business so that they can lure voters during the time of elections in 2014. However, there is no guarantee whether they will be able to lure voters or not, but if the concept of FDI is successful in the coming the years there is a chance of UPA remaining at the centre.
After the FDI entered India all the opposition parties started opposing it including UPA's alliance parties as well. Due to this the parliament has not functioned properly and has seen back to back 9 days adjournment with the adjournment motion now extending till 7th December, 2011. It is to be noted that 7/12/2011 is the proposed day for the introduction of the much awaited "Janlokpal Bill". Now question here arises that after resuming of the Parliament whether there will be discussion on Janlokpal Bill or whether a debate will go on the current FDI issue. If the debate continues on FDI one can't expect Janlokpal Bill to be passed before 22nd of December, 2011 which is the last functioning day of the winter session of the Parliament. If the bill doesn't gets passed in the winter session of the Parliament the country will again see the same situation which it has seen a few months ago. If the bill is not passed the whole country will blame the UPA government for not passing the bill within the prescribed time and during that time the UPA government will start blaming the opposition for not letting them introduce the bill in the house.
What next??? Well, the same blame game will start again between the opposition and the government blaming each other for the failure of the Janlokpal Bill. To think on it one can say that the UPA government is the sole benefiter of this FDI with taking the right step to lure voters, averting a sure defeat in the upcoming elections, hiding its incapability in framing a strong Janlokpal bill and taking a right step to bring down inflation.
With "Walmart" the megastore entering the market, retailers from all over the country started opposing it saying that this will lead to shut down of their business. And the retailers are right at their place. If the history of the megastore is seen we can see that in whichever country Walmart has opened its store they have attracted a lot of consumers and the retailers in those countries had to forcefully shut down their business to avoid losses. The concept behind Walmart is so that it purchases the goods directly to avoid transportation and other costs. True that through this inflation will come under control. On questioning Finance Minister about Walmart after the protests started he said that this will bring down the inflation rate and will provide employment opportunities to people across the country. Now has anyone thought how much employees will work in a particular mall of Walmart? It is only 272. Yes, only 272 workers will work in a particular mall of Walmart creating hundreds and thousands of jobless people around the country. Though this concept of Walmart will benefit a larger group of buyers but what about those people who have business or who are likely to start a business very soon. Soon there will be a huge group of educated unemployed but this group won't be more than the larger group of buyers in the market who are likely to benefit from this megastore. Since the buyer group is larger than the business group they are in a condition to get attracted by this concept of Walmart and they can even vote for UPA government in the upcoming election of 2014.
There is still time for the 2014 General Elections which is seeing the NDA government as the ruling party in the centre. So making complete use of the available time the UPA government has come up with the idea of 51% investment of FDI in retail business so that they can lure voters during the time of elections in 2014. However, there is no guarantee whether they will be able to lure voters or not, but if the concept of FDI is successful in the coming the years there is a chance of UPA remaining at the centre.
After the FDI entered India all the opposition parties started opposing it including UPA's alliance parties as well. Due to this the parliament has not functioned properly and has seen back to back 9 days adjournment with the adjournment motion now extending till 7th December, 2011. It is to be noted that 7/12/2011 is the proposed day for the introduction of the much awaited "Janlokpal Bill". Now question here arises that after resuming of the Parliament whether there will be discussion on Janlokpal Bill or whether a debate will go on the current FDI issue. If the debate continues on FDI one can't expect Janlokpal Bill to be passed before 22nd of December, 2011 which is the last functioning day of the winter session of the Parliament. If the bill doesn't gets passed in the winter session of the Parliament the country will again see the same situation which it has seen a few months ago. If the bill is not passed the whole country will blame the UPA government for not passing the bill within the prescribed time and during that time the UPA government will start blaming the opposition for not letting them introduce the bill in the house.
What next??? Well, the same blame game will start again between the opposition and the government blaming each other for the failure of the Janlokpal Bill. To think on it one can say that the UPA government is the sole benefiter of this FDI with taking the right step to lure voters, averting a sure defeat in the upcoming elections, hiding its incapability in framing a strong Janlokpal bill and taking a right step to bring down inflation.
