Are we ready for the retail dragons???? by Bipul Megotia, PGDM 2010-12, IMT Nagpur

Huge outcry in parliament, Politicians warning the government, Threats from various quarters…. These activities are not new in our nation but we have a very new reason this time. It’s not lokpal, neither is it telangana issue. It’s “FDI in Retail”….. Recently cabinet approved the proposal for allowing 51% FDI in retail and thus opening doors for the retail honchos such as Wal-Mart. But the politicians including the allies of the ruling party failed to digest it (God knows what these allies were doing when the proposal was in cabinet as they also have their representatives in cabinet). As far as the development of any nation is concerned, it is impossible till a nation opens up its economy but at the same time guard its own interest against exploitation by foreign companies. FDI will obviously solve some of the major problems of our nation such as inflation and poor standard of living. Its needs may also force the much needed improvement in the supply chain system and infrastructure of our nation. Fears are there that small traders and kirana shops will cease to exist and thus leading to huge unemployment. This is obvious to a certain extent but we need to sacrifice something and change ourselves for our development. These fears are not as damaging as it looks like as the retail chains are not going to just flow over the entire nation as soon as the barriers are pulled up. They would first settle their grip in the 53 cities which according to them satisfies their criteria in terms of population, area etc. It is only after that they would think of expanding to smaller cities. The time in this entire process will be enough for the population to slowly transform themselves to adapt the changing scenario. In a country like ours we need to think beyond the goods and bad for some specific community or political party. What should matter is aam aadmi. FDI in retail will be a boon for economy as a whole. Though there are some small issues but they can certainly be worked out by wrapping the decisions effectively under our laws so as it does not harms us. Today its retail, tomorrow it can be airlines. We need to prepare ourselves to face the challenges of the world economy and make decisions that are in favor of economy as a whole. Only then can we achieve the vision2020 of Dr. Kalam to make India a superpower by 2020.