The ruling United Progressive Alliance has also ignored the needs and conditions of hundreds of thousands of smallholder farming families, who will from now on be steadily exposed to increasing levels of coercion to submit to corporate and industrial farming pressures, or to quit cultivation and join the masses of informal labor in urbanizing towns and cities. The decision which has created much flutter in the oppositions has still been approved by the UPA of allowing 51 per cent Foreign Direct Investment (FDI) in the retail sector.
If the government's decision gets Parliament's nod, major global players like Walmart will set shop in India. The long-awaited decision by the Cabinet will allow retailers who sell multiple brands of products to own 51 per cent of their Indian operations, with the rest held by an Indian partner. Previously, such retailers were not allowed to conduct retail business in the country
Reacting sharply to such a proposal the Bharatiya Janata Party (BJP) leader Uma Bharti on Friday said, `If Walmart opens its outlet, I would personally set afire the showroom and I am ready to be arrested for the act.’
She further added that by allowing 51 % FDI in multi-brand retail, Prime Minister Manmohan Singh and his government have prepared the grounds for making poor villagers, Dalits jobless. Even as the central government is still to come up with a policy over the land acquisition of farmers, by cabinet approval the government is now set to get even the jobs of poor people acquired by retail giants.’
While positive thinkers argue that Walmart should not be banned also because Wal-Mart bills everything they sell and the billed money goes to taxation. Tough competition for retailers. Walmart squeezes the best deal from manufacturers and passes the benefit to consumers. They have a point too!!