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The Textile Magazine
DECEMBER 2011
FDI
in
Retail
India always prided itself on its
vibrant democracy. It was large and
noisy, but it worked. Today, there
is concern over India’s overall eco-
nomic slowdown. From ambitions
of double-digit GDP growth rates,
the slide has been swift. Yet, in the
broader scheme of things, a slowing
economy seems to pale in compari-
son to the larger crisis at hand – that
of a Parliament that is completely
unable to function in a normal, dem-
ocratic manner.
A democracy encourages open-
ness and permits dissent, but per-
ennial disarray and disruption is
sacrilegious. So, as the nation inter-
minably and unproductively quar-
rels about ‘India’s tryst with des-
tiny’, the more important question
is how should some semblance of
order be restored in Parliament?
During the course of the year, sec-
tions of Corporate India, together
with the common man, raised its
voice over many misgivings of
the Government. The Government
gave a hearing, and remedial ac-
tion, though in small measure, was
initiated. Many concerned with the
prospects of Corporate India said
stem the slowdown, increase invest-
ments, bring in new reforms. No
one objected till then. But when the
Government began to act, what have
we but chaos and adjournments over
a decision to allow foreign direct in-
vestment (FDI) in retail.
There are 32 Bills in the winter
session of Parliament for considera-
tion and passing, many of which are
of far greater consequence and im-
portance for the country than FDI in
retail. The protests on FDI in retail
are misconceived and unfortunate,
but hope to salvage this situation
should not be lost.
FDI in retail has not been a sud-
den decision taken by the Govern-
ment. On the contrary, the idea has
been toyed with for over 14 years.
Detailed discussions with various
stakeholders have been held, experts
By Ashok Ganguly & Deepak Parekh
The false dangers of FDI in
modern retail trade