Delhi Chief Minister Arvind Kejriwala is under debate for taking the decision to revoke the foreign investment for the retail business. Most economists are thinking it as a wrong decision. This will increase unemployment and food price hike. And they will affect the interests of customers.
Newly elected Aam Aadmi government acted imprudently by not giving permission for running foreign retail business in New Delhi. For this decision employment will not increase, customer cannot protect their interests, even there will be uncertainty in opening the international market ‘chain’ policy. Including these, the world wills receive wrong messages.
The decision is taken as the time when many companies were planning to invest in retail business by placing Britain’s Tesco, the multi-brand agency in India for the economic revival in the world. Many economists are thinking that it is a red signal for this country’s economy, and human struggle will weaken against the inflation for this red signal.
What might be the benefits from foreign investment in retail trade in India? According to socio-economic experts, the way foreign multi-brand companies will make warehouse, cold storage and supply chain; nearly 40 percent wastage can be saved from perish food like vegetables and fruits. Herein food providing will increase, as a result, food prices will decrease. The additional revenue of government will also increase by approximately 30 to 35 billion U.S. dollars for various taxes.
If this happened, the farmers would get 10 to 30 percent higher than the price received for their agricultural commodities sold. Above all, the employment opportunities would increase. However, the slogan of some political leaders says that it will reduce the job opportunities. Has the work opportunity decreased for native multi-brand retail like ‘Big Bazar’? No, it has not.
It is seen in studies that the employment is higher in organized retail market than unorganized retail market. Unorganized sector like local shop keepers tries to keep less staff and give them low-wage. According to Indian Industry Mahashangha, the multi-brand retail could create 30 to 40 million direct and 40 to 60 million indirect jobs opportunities. Indirect job creation means who are related with distribution and repackaging labor contract.
The chairman of ‘Techno pack Consultancy’ thinks that the idea seems preposterous that foreign multi-brand retail business will increase unemployment throughout the country. China is the burning example of retailing business benefits by foreign investment. Since 2005, China has opened doors for multi-brand. However, it is not enough to just implement the policy; an eye should be kept on so that the interests of consumers and agricultural producers are protected for long term.
The Chief Minister Arvind Kejriwala has misinterpreted if he thinks that it is people’s verdict by overturning the previous Congress government’s decision regarding foreign investment in retail trade. People wanted a corruption-free administration, not an anti-competition conservation policy. If Aam Aadmi Part wants to become the national party with these kinds of political popularity, such as many decisions will be changed unilaterally. At last, this will result in net loss.