Letters: FDI's no panacea

This refers to A K Bhattacharya’s column “When politics rules the roost” (New Delhi diary, November 30). To say opposition parties should keep silent in Delhi since they are free to not allow foreign direct investment (FDI) in retail in states in which they are in power is laughable. We cannot entrust only Congress with matters pertaining to national policy, other parties must also have their say.

The uproar over FDI in multi-brand retail is primarily caused by the way the Congress handled the matter. The political situation was already taut with inflation and corruption issues. Announcing an important policy change outside Parliament when it is in session seems like an attempt to bypass the parliamentary procedure. If this move was to impress the US, like the nuclear power deal, or to get some foreign exchange in the face of rising trade and payment deficits, then, of course, it is another matter.

Apart from the timing, Congress is also wrong in equating reforms with more foreign capital. Surely, organised players can bring some benefits, but to propagate FDI in retail as the panacea for improving the lot of farmers and consumers and claiming that it will have no fallout is dubious. Most foreign players will stick to big urban areas and source fresh products from nearby regions only. Thus, effectively, this will leave most farmers unaffected.

P Datta, Kolkata