L E T T E R S    T O    T H E    E D I T O R

Will FDI be a spur or a slur?

The FDI in retail has revived some controversies regarding its credibility and core concerns. A great political strategy demanded an equally important political loss with the TMC withdrawing its support. Mulayam Singh doesn’t mind pedalling his cycle into areas which promise him some political brownie points. It’s very obvious that he can’t afford to lose his support base.

Taking an example of potable water, essential government  medicines do not reach villages but one can easily find Bisleri packaged water bottles there.

We live in a global village where new products pop up from anywhere and the nostrum of being secluded seems apocryphal. We need to weigh the benefits and demerits of the globalisation factor on a balance beam and ensure that the compromise needle always confirms to the sanguine middle level.

Similarly, the IT revolution in India promised great inputs for GDP growth and communication systems improved precipitously with globalisation. Retail giants like Walmart will provide great quality and quantity of products under one roof, thereby creating a huge pool of customer satisfaction.

The rules are simple. More industries mean more trade, more exposure, more investments, more job opportunities, more urbanisation, more improvement in lifestyles, more economic growth and more common welfare.

The trepidation that gargantuan firms will gobble the small players is an awry intuition. With stringent cartel laws, it can be easily moored for welfare of local indigenous masses.

Then why are people petrified? It seems that the plethora of consistent scams has besmirched the UPA’s image and people have lost faith. The question now is that why has the reform engine suddenly turbo boosted? And if it has, is it related to “economic” or “political” survival”?

Will FDI be a spur or a slur? Global trade is the key to economic boom but the time of arrival for FDI in retail does pose some serious concerns.

KANISHKA PATHAK, Dhanbad, Jharkhand

II

It is wrong to assume that organised retail, which is expected to increase after FDI, is going to harm farmers.  The fact is that both growers as well as consumers are going to be benefitted by it.  Many economic studies carried out in the marketing of fruits have revealed that in India, the producer gets only 20 per cent of the price paid by the consumer.  80 per cent is taken by middlemen. If we add 15 per cent  towards transportation and other expenses, there is still a profit of 65 per cent. 

So supermarket type of retail in fruits and vegetables is going to be in the interest of grower as well as the consumer. 

The only group of people who are going to be adversely affected by it are the traders.  They are opposing it as it is their profit margin that is going to be reduced.

 FDI has come now, but the organised retailing of fruits and vegetable was started by few business houses two years back.  Traders were against it then also, there were instances of attack on Reliance Fresh outlets in UP.

 FDI will not throw anyone out of job, it will rather generate more jobs in retail and HR sector. The business of shopkeepers and small traders will also go on as usual, however, they will have to keep their profit margin within reasonable limits.

 Dr CHIRANJIT PARMAR, Mandi

III

Local retail marketing is so ingrained in Punjab’s social milieu that to bring the concept of FDI in Punjab can be a big risk. Although the presence of FDI in retail market will boost Punjab's economic status, the question is whether the people of Punjab are ready to accommodate such kind of alteration.

The risk is relatively larger in smaller Punjab towns as Mall culture and brand consciousness is still rudimentary there.

A survey reveals that most of the Punjabi people go to Malls for fun, but for shopping they prefer local retailers.

ROHIT SACHDEVA, via e-mail 

Be a friend! With the increasing burden on children, the question that arises is: Is your child capable of coping up with stress? Today’s generation has many stresses to cope up with. It not only includes constant pestering by parents to excel in academics, but also peer pressure, social pressure, enhancing development skills, etc. The best way to find a solution to your child’s problems is to be your child's best friend. Don’t rest the pressure of your dreams on his or her shoulders. Let the child choose his own way, be a constant guide and companion so that in case he falters you can put him on the right track. The seeds that you sow shall definitely blossom. The growing number of suicide cases is a testimony to the fact that teenagers often stumble, but because there was no one to support them they became a victim of undue societal pressures. NEHA MAHESHWARI, Patiala