FDI – India, Communist and Opposition

India have enjoyed democracy and freedom since 1947 when English were forced to leave the land. The country where 1/8th of total population on Earth lives couldn’t achieve anything remarkable except three wars, egoistic nuclear program and foundation of corruption in first 25 year from freedom. Our GDP was hardly 100,000M USD and with 1/8th of total population it sounds puny. My parents grew up in that India. Where people enjoyed freedom but still felt helpless about reforms in India. But is freedom was that’s all we wanted, when I asked to my parents: Answer was surprisingly yes.

I born in 1984 time when communism was shattered by people revolution in central Europe. India at that time was getting worst though we enjoyed mixed economy but it wasn’t sustainable. When USSR collapsed which was a setback for all communist governance in India and abroad. Foreign goods starts pouring to Indian market it was simply a question of allowing foreign brands to sell their stuff in India. But it wasn’t easy.

I left India in 2007. India at peak of it’s IT surprise. People start traveling abroad in large number and started to influence India system. Corruption is on it’s peak, poor standard of living haunting their memory of the life they lived in US or Europe and the truth is only IT cannot bring reforms to India’s economy. Our last 3 governments considering FDI in retail finally decided that they are going to allow 51% FDI in retail. Which is what most of the retail companies were looking for from last 2 decades.

Just like all Indian stories, that’s not the end there are villains: communists and opposition. Communists in India always talked about protecting the poor but what actually they were able to protect was their power in Indian political system. I had hard time to understand why communists are successful in some province in India. They replaced God with Stalin, there are no caste and no humiliation, which in some part of India have been always a problem. Instead, I expected that these idiotic people stereotype would eventually go as we evolve. Opposition is nothing strange, they just have to oppose to everything without being responsible and that’s what people do when they are not in power.

Why they cries? It’s a global world with equal opportunities in trade. Instead of sit back and say “we can do everything by our own”. We should be part of globalization. We wants to export but we don’t want to import. We want lame agricultural system where crop goes bad and framer suicides instead of better logistic and product distribution system. Nothing comes without it’s own shortcomings but they are far too small than the benefits to every Indian.

One comment

  1. Can someone please enlighten ?

    FDI in retail will be allowed in only 53 cities – each with a population of 100,000 or more

    Even if we assume that the average population of these 53 cities , is 4 million, it could add-up to approx 120 million people

    That is just 10 % of India’s population of 1210 million

    It is unlikely that more than 10 % of these 120 million people will shop at Wal-Mart , Carrefour, Tesco etc

    That is 12 million people – no more than 1 % of India’s population !

    And how many Super marts will foreign retailers open in those 53 cities ?

    9/10 in each of these 53 cities ? – for a total of 500 ?

    But , as per recent newspaper reports , we have 50 million small retailers in our country

    That means, one Super mart must compete against 100,000 local retailers !

    Is that a grave danger to the local retailers – having 99 % of the market share ?

    Unless someone claims that those 1 % of the population make 50 % of the total purchases in the country !

    If I am wrong , please enlighten

    With regards

    hemen parekh


    Jobs for All = Peace on Earth

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