FDI in Retail

Vacation blesses one with time to relax. I am no exception. I was watching a very interesting and engaging discussion on the tube the other day, on FDI in Retail. Panel participants represented different backgrounds, to bring diversity to discussion. In spite of the diversity the discussion was vibrant throughout. What got established for a fact were that just like other important sectors, the Government has failed to draft an overarching policy paper to guide and govern this business. Lack of clarity on the part of our Government’s stand on various aspects has left the stakeholders groping for answers on their own.

Let’s dwell on a couple of cogent points of debate……

Should we open up the Retail sector to foreign investors?

What is the size of unorganized retail in India? What will become of entrepreneurs who are part of the unorganized retail?

If we do open up, should we enforce sourcing from India for everything that hits Indian retail shelves?

Is there a way to improve Indian production to global standards so as to win some part of the source business, from our neighbors China?

If we decide to open up, it will offer a better choice to consumers, for sure. But will that alone create a sustainable economic model? Is there another market with socio political and economic limitations like us that has imbibed the opening up of retail to FDI? What are the learning in those markets?

We know for a fact that the production efficiencies are better in China, which allows them to price their products low. The trick here is to produce better quality that China, so as to justify our high cost. Or are we inferior in all three aspects…….efficiency; cost and quality? If the answer to this is yes, then FDI may not be a great move today. 

How long can we not open up, simply to put up with inefficient ways of production, is what we need to address as a nation and community.

Talk of FDI is Achilles heels for the unorganized Retailers in India, as they foresee losing business by way of market share dilution, as well as margin. But what may not be coming to fore is the fact that these neighborhood stores have been and will always be convenience stores. That business is for them to spruce up and maintain.

In any case the reason for liberalization is always to grow the market and increase consumerism. That in turn brings in economic growth. What is imperative is a sound Policy framework to be created keeping in mind the landscape of India, socially, economically and politically. What is also important is to put in place a regulator to orchestrate this melancholy into the music of monies. This brings us back to how dependent the country, this time the economy is on a very functional and intelligent Government.

I think we still have some yards to go, before we have a political setup with such delivery mechanism. 

Kanwad.....a religious frenzy?

Religious tolerance is a great characteristic to flaunt. It sketches image of a society free of endemic mindset. Open accommodative and tolerant. I came across a Religious phenomenon called “Kanwad”, which turned out to be an eye opener.

I mistook so many rights and liberties for granted, which our society has relinquished for some time I am told. Probably I need to adjust my expectations.

Kanwad is a Religious rage in North India, in the Hindu religious sect. It triggers a diaspora of believers to the Holy Ganges. Holy water from the Ganges is picked in “Kanwad” or a miniature cauldron, and ushered to local Shiv temples back home.

There is one stringent principle that governs this pious and holy act…….thou shan’t put the “Kanwad” once filled with holy water to ground. It has to be carried on foot to the destination. The entire pious act is beset in sweltering heat and humidity, and within a stipulated window of time.

The route to Ganges is but a few and one is faced with perennial traffic that runs into kilometers after kilometers of traffic congestion, when crossing cities that fall in between the devotee and his destination. Naturally it is very inconvenient for those who embark upon this test of physical endurance. If only there was this corridor dedicated to such religious cause, alongside our city roads. Conspicuous arrangements are in place to allow this human overture to occur in harmony with busy city life, in the big city – Delhi. But travel further north and we witness a striking change! Cities which one must tread to reach Ganges and that do not have broad roads and decent sidewalks, are a nightmare. This time though, for the society at large.

I happened to venture out unaware of the monstrous proportion this religious trip has assumed in MODERN India, and was left aghast at what I saw. This city was held hostage by Kanwadis - those who perform Kanwad, running nothing short of riot. Should your car fall in line of sight of the barefoot jogger running with the Kanwad, or the two trucks of enthusiasts following him, it shall be ravaged. Police force deployed on the roadside housed in merciful shades provided by jutting porches from balustrades of the shops lined roadside, appeared happy spectators.

One ill-fated car, I saw, received a pounding on the bonnet then the rear glass pane, to leave the vehicle deformed and the owner scarred and scared. One auto rickshaw driver attempting to extend his daily run for livelihood at this religious hour was authoritatively slapped across the face by another enthusiast, as he too was in the line of the bandwagon. It was total abdication of law and order by an obdurate few.

Frustrated with the ugly turn of events, I looked around to observe the reaction of people on road. I found no contempt or anger over what just happened. It takes much more than a few slaps and car wrecks to arouse us, to take a stand for what is right, maybe!

I was informed later that night by my brother in law, who was accompanying me earlier that afternoon when it all happened, that the overriding sentiment was in favour of the Kanwads. Zeitgeist suggested that since the Kanwads were confronted with so many hurdles and impediments in their brave sojourn, those in the comfort of their cars and homes need to accommodate in every possible way. Even compromise a few rights as citizens of this great democracy.  

I mean no disrespect to any religion, and I believe Religion is a very personal asset. More importantly, no religion teaches intolerance, domination or violence. Religion is simply stated, the route to God, the definition of which is beyond words.

Khap Panchayats…..the face of Conservative extremism

The Assam teenage girl’s molestation in public is the darling of Indian media these days. One senses a surge in moral angst, on account of the open occurrence of such an unfortunate event, from literate and liberal India. Well, Urban India for sure. But there is more to the conflict in the opposing ideologies than meets the eye. As was evident to me from the beginning, my beliefs found substance in the channel casts that have been aired these few days.

Time and again and in all programmes and discussions following this subject, it has been argued that, mainstay politics is shying away from this whole conundrum. Inexplicably so! It is anyone’s guess that the covert driver of such nonchalant response from men in realpolitik is the affected vote bank.

However hard you try to get your head around the subject, it boils down to the following few key points

Is India actually ready to go democracy?

Is Capitalism in India for real?

In a democratic setup, the masses choose Leaders to power hence public offices. The voters here need to rise above everything else and first associate with the nation, to be able to vote a political outfit to power. Do we really live as ONE nation? Differences of Language, Region and Religion are manifest in this great land since independence. Do we obliterate our differences that are predominantly personal, before we go out to vote?

Ours is a land of too many, and a lot of depravity. A big chunk of the population is still deprived and poor. What chances of a fair judgment do our ballot boxes stand when it is commonplace for our smart politicians to pay a customary visit to these starving millions and provide them a day’s meal as part of the investment in an election, before polling? In such a diorama, expecting the ones with no access to education, food, life and a cause to rise above all else and vote is an outrage.

Those who eventually get elected and taste the intoxicating ministerial echelons, are they there to lead the nation to sustainable development? Or are they subservient, only to further their own cause, at the cost of national development.

For a nation, where it is rather easy to coerce the voters and a political class that is just not devoted to national development, are we really ready to go democracy?

Point that our enterprising Politicians may be missing is that Capitalism in India can’t be a long term prospect. In fact isn’t it common sense, that if I have retirement plans and am industriously laboring into pocketing public monies, by the time I am done and am old, I will have starving men around me with no money or means, hungry to kill me and take away my wealth.

With such little going for democracy in India, there is the bright side too. My only concern is the time it takes for us as a nation to do everything.

Amidst such socio-political set up, North India witnesses a new phenomenon, the “Khap Panchayats”.

Panchayats have been about since donkey’s years and empowering Panchayats is part of extending the judiciary to our rural areas. This is well understood and appreciated. The only difference is that Khap Panchayats are not the normal Panchayats, these are self-styled, self-appointed bodies who seek to govern small villages. These are not democratically elected Panchayats.  

Male dominated and chauvinistic in nature, these bodies have been blurting out commandments to keep the rural society in a cloistered haven. Women folk are no longer allowed to stay out of their houses after dusk. Should the need arise, they have to be compulsorily accompanied by a male member. Addendum- Dress code for women, no cell phones for women.

This recent phenomenon is seen in rural parts in the vicinity of the Capital (Delhi), an attempt by valorous and righteous rural male folk to restore the social order of the past. Little do they realize that the very edifice of Indian freedom is antithetic to this forceful mindset. One can equate it to Conservative extremism. The syndrome is so acute and widespread in those who see this as the right thing to do, that I remember a Politician on TV claiming that the teenager who was molested in Assam deserved what she got, because she was partying and was returning home late. I was petrified beyond all possible bounds to even attempt, how many of these leeches beset our political class.

We are in an era of global competition and simply can’t afford to lose the plot, now that the west is under economic duress and we hold the key to resurgence. With the immense growth that awaits us at the anvil, we need to take the lead and get there soon. To do that it may take more than our archaic view-points of selfish ideologies.

I know not how, but with this political setup it is a far cry. So the change if there is one in the offing will begin with you and me.