The Show is Over, Let Us Move to Business Now

For Past one year or so India's politico-economic debate has been centered around FDI in retail as if it is the real "Game Changer" for Indian economy. Precious and Costly days of parliamentary sessions have been wasted on this executive decision which definitely deserved an honest debate but not a long drama. Finally the show is over. Lok Sabha today voted for FDI in retail under there special rule and thanks to the politically logical (difficult to be justified if you are not a politician ) walkout by few parties govt. survived the vote and was saved from humiliation. There is nothing more the opposition can do on this matter and now it should allow the public to take over. When the nation goes to poll in 2014 it will decide whether or not to support a wave of FDIs that have been introduced. 2014 is not far away. I doubt if much FDI in multi brand retail will come by that time. If the public gives its verdict for the opposition it can reverse the decision or at least make stronger regulations to save their beloved 'Junta'. I'm saying so because the Pepsi and McDonald that Ms. Sushma Swaraj (leader of opposition in LS) condemned were there expanding during NDA regime too. However, I don't remember any specific procurement regulation being enacted. Moreover, there were factual errors in the speech against FDI in retail.

Source: Economic Times article, 'FDI debate leaves a bitter taste for McDonald's, Pepsi and KFC' 5th December 2012

So, both opposition and govt. used facts to their convenience. Anyways my point is FDI in multi brand retail has garnered enough lime light. It is time to let go and grab a new issue.

Now that opposition's demand of voting has been accepted and voting over we should hope that they will allow the house to conduct its normal business and do what it is responsible for i.e. legislating. A no. of legislative decisions are pending that have clouded the policy scenario in the country. As a result investors aren't sure of what to expect as future policy and this has brought investment to standstill. Industrial output is falling and agriculture keeps hovering around 2% growth rate. This is where we need the debates to be centered around and action being taken. Land acquisition bill if passed will give much clarity to new investors and relief to industrialists with pending acquisitions. Similarly a clear cut policy on allocation of natural resources will help industry shed the costly coal import when domestic coal is lying untapped. Electricity consumption in country is lowest in the world not because there are not consumers but, because enough is not being produced, in this scenario power sector reforms will definitely do miracles for ailing economy. We all know govt. gives huge subsidy on fertilizers but, few understand that Indian agriculture is suffering due to Urea subsidy, a reform here will be welcome. Govt. is driving MSP constantly upwards and procuring in huge amounts. Still, only food prices are going up and the money is not showing in farmer's bank account. FCI's procurement is well above its storage capacity and grain is being wasted when millions are starving. A reform in APMC Act and provisions to link free markets nearer to farmers will be welcome move.

Above were just glimpses of where we stand and why is Indian economy slowing down despite all growth drivers being intact. Overall we need a no. of ground level reforms that can change the basic structure of Indian economy and synchronize its employment and income pattern. Most of what has been happening in names of reform has been attention seeking small tweaks and since opposition thinks it lost on attention seeking it makes those tweaks big issue when bigger issues are pending, I hope some of the important acts are passed in the winter session and the economy ends FY 2012-13 on a hopeful note.