Union cabinets nod to allow foreign retailers to stake their claims in Indian market has infuriated legion of Indian retailers who feel bullied by advent of these companies. They are quite apprehensive that as minnows they will easily become morsel of death of these companies as financially they are fragile. Now the question arise that under which compulsions this virgin field had been left largely unexplored by our government and why it is lobbying for these companies at present. Government at this juncture is desperate to control spiraling prices and crack down on black marketeers and racketeers. It is of the opinion that permitting these players will halt hoarding tendency of shopkeepers and will facilitate in keeping price tag under tight fist. This will also stop speculative prices of essential commodities. It also believes that once these marts are operational it will have money transactions directly with growers which will help our farmers substantially as their big chunk of lucre is devoured by avid middlemen. Now in present scenario these birds of prey would become almost redundant and will no longer be able to undermine farmer’s interest.
Undoubtedly this measure is laudable one but it will render thousands of our small retailers almost jobless as they would be deprived of their sole sources of livelihood and will contribute to proliferation of poverty. These are the shopkeepers who run their business in any kind of manageable shops and are not prone to tag their salable items at exorbitant prices. Their net profitability almost remains meager as they well understand socio- economic ethos of their clients.
However with advent of these business tycoons such as wallmart and other biggies our small retailers will easily serve as fodder for their insatiable urge for corporate hegemony. Their sound economic scaffold will certainly eclipse our geriatric and dilapidated business outlets. They will also monopolize the market and will script their own business ethics that would be solely inclined towards making fast buck and sprinting up ladder of success by trampling their rivals. They will set up their store in grandiose manner and in sprawling areas that would be thronged by teaming Indians as place of pilgrimage. This will further shot off gross materialism and consumerism and will induce people to splurge. People will love to indulge themselves in shopping binge and will go on spree of unending purchasing. This shopaholic urge will dent saving tendency of Indians and will be largely detrimental for economy. Moderate and frugal way of living will be left to be buried deep in bowels of history. This excessive consumerism will lead to generation of solid wastes on mountainous scale that will further complicate, precariously placed ecological conditions.
Government must weigh all possible alternatives before going ahead with these multinationals as their arrival will have far reaching consequences on our domestic economy. It must safeguard interests of domestic retailers before yielding to these companies. It is almost like catch 22 condition where our economy could be either made or marred.
