FDI in Retail

The resistance by the opposition parties in letting the government introduce the bill permitting FDI in retail is ill-conceived and short-sighted.
The government should highlight the benefits that have already accrued due to growth of modern retail. The number of jobs that have been created by the Big Bazaars and the Hypercities is phenomenal.
We are witnessing the change in the way people shop in places like Bhopal, Nasik, Patna or even Bhubaneshwar. What is heartening is that young people from surrounding smaller towns and villages are getting an opportunity to be gainfully employed in these outlets. Based on their individual skills, they are engaged in sales, supply chain, housekeeping or security services. The companies also make efforts to train them to enhance their skill sets.

However, the Indian players have apparently achieved their scale and there is a need to infuse fresh capital and expertise to take retailing to the next level. Recent statements made by senior functionaries of retail chains point towards this.
The move by the government is a long over-due one. The diminished and fragmented land holdings have made farming highly unprofitable for the marginal farmers. The FDI will enable consolidation by the companies and support being provided to the marginal farmers in order to secure their (retailer's) source of supplies. Infact this is already happening in a number of states.
Newer technologies and methods will be available for increasing farm productivity. Fresh investment will radically improve the infrastructure and the cold chain thereby reducing wastages in the journey of edibles from farm to fork (or finger) . The gap between the price that the consumer pays and what the farmer receives will drastically come down.The farmers and the consumers both stand to benefit immensely due to improved efficiencies. A number of jobs shall also be created for operating this chain.

It is only the middlemen and the APMC who stand to lose.

Having said that, the resistance by the main opposition party is understandable, given that their main constituents are the traders and middlemen. However, I am sure given the scales, the middlemen also will find gainful employment in the logistics chain, be it in procurement or transportation.

The political parties need to rise above parochial political gains, see the larger picture and not misguide their constituents. The government needs to be firm. Otherwise it will be another wasted opportunity.