Rahul Gandhi’s Move and What
it means for the Frozen Proposal
With the Centre grappling with myriad
issues across a wide spectrum; including stagnating economic growth,
inflationary pressures, widening fiscal deficit, weakening currency, drop in
industrial output and a general lack of credibility; its attempt at finally
paving the way for FDI in multi brand retail would go some way in dispelling
its “pseudo-reformist” attitude. Or so the Congress would have thought.
However, in its haste to usher in the new era of economic reforms and pick up
the gauntlet of liberalization with renewed vigour, the Congress has seemingly
collided head on into the impregnable walls of staunch opposition from its
coalition partners and other parties such as the BSP and the SP. The fierce
backlash to the Government’s decision eventually caused it to temporarily
freeze the move, much to the chagrin of the industry at large which has
vociferously hailed its previous proactive stance. On the face of it, the move
to roll back its overdue decision does appear regressive and flies in the face
of its pro-reforms approach after a period of “policy formulation and
implementation limbo”; but such are the dynamics of coalition politics that
cracks and fissures can suitably be leveraged to browbeat the Central party
into submission.
Set in this volatile backdrop replete with
a veritable degree of caprice, the industry insiders continue to lament the
Government’s incertitude on FDI in retail. However, despite the torrent of
negativity and vitriol pouring in from myriad quarters, it does appear that all
is not lost. Addressing farmers in the potato belt of Farrukhabad in Uttar
Pradesh, the scion of the Congress party, Rahul Gandhi spoke out in unequivocal
support of the move to usher in 51% FDI in multi-brand retail in the country.
He also went onto term the proposal as a “pro-farmer” measure and took a swipe
at the Congress’ regional rivals such as the BSP and the SP, terming their
misplaced opposition, resentment and rejection as “anti-farmer” rhetoric.
Gandhi’s statement that comes days after the momentary lockdown on the move
comes as a timely shot in the arm for a beleaguered Government that continues
to struggle in its quest to negotiate the choppy tides of tribulations. It also
promises to serve the Congress well by compelling those dissenters from within
its ranks to fall in line with alacrity. A unified sense of purpose taking into
cognizance the larger picture is of critical significance to the eventual fate
of the laid down proposal.
The Government is likely to reassess the
situation, readdress the concerns of the aggrieved and dissenting parties and
take up the cudgels in earnest with regards to the contentious FDI in
multi-brand retail issue after the Uttar Pradesh state polls. With the young
Gandhi already expressing solidarity with the plight of the farmers who stand
to gain immensely from the proposal if implemented and wisely positioning the
Congress as a pro-reform and pro-farmer party, he could have pulled off a
political masterstroke. Farmers in this region, as well as parts of Punjab and North India, have reportedly dumped their produce as they
don’t find it feasible to bear the cost of transporting their yield to the
market. Additionally, even if they do manage to get their produce to the market
they are unable to fetch remunerative prices, adding to their already existing
financial and logistical woes. By emphasizing the fact that the farmers stand
to receive better margins on their produce and in turn also reduce significant
wastage, Rahul Gandhi is garnering the critical support of a critical vote
bank. Hence, it appears that his carefully engineered move is designed to serve
multiple purposes.
FDI in multi-brand retail isn’t merely a
flashpoint any longer. It is a pressing necessity. For far too long has the
Government concealed itself behind the veil of coalition political pressures,
precariously perched on the fence of ambivalence and gross indecision, failing
to find a middle ground. However, it is high time that proactive governance
translates words into actions, ensuring tangible results. How the Government
manages to find a way out of this present quagmire and actually galvanize the
rapidly burgeoning retail industry remains to be seen. But for now, the
industry has to make do with positive words of intent and action that may
materialize in the not so distant future. Or won’t it?
Pradyut Hande
The Writer is presently pursuing his Bachelors in Business Administration at NMIMS, Mumbai. He attempts to address myriad issues of both domestic and global consequence, ranging from Business and Economics to Geopolitics...from Sports to Arts and Culture.
The Writer is presently pursuing his Bachelors in Business Administration at NMIMS, Mumbai. He attempts to address myriad issues of both domestic and global consequence, ranging from Business and Economics to Geopolitics...from Sports to Arts and Culture.
