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Monday, October 8, 2012

How big is Wal-Mart and how dangerous?


                Government of India has increased the FDI in multibrand retail to 49% by a cabinet decision, which it could not pass  in the Parliament due to stiff opposition not only from the opposition parties but also from its own allies. The government wants MNCs like Walmart to come to India and invest in the retail market.
                 Who or what  is this Wal-Mart, whose name always comes first when mentioning retail trade?
                  It is the biggest retail trader in the world. But it is much more than that. It is the company with largest revenue in US with $ 421 billion. Its nearest rivals  are Exxon Mobile with $ 354.6 billion, Chevron with $ 196.3 billion and General Electrics with 151.6 billion. Compare this with India's Reliance Industries with $ 76  billion. Wal-Mart's grocery sales alone comes to $ 129 billion.
               Its GDP is the 25th in the world more than the GDPs of 170 countries. It has got  manpower of more than 21 lakhs, much more than Indian railways, which is around 13 lakhs. Indian Army is considered to be 13.25 lakhs.
              Wal-Mart has destroyed the retail trades in many countries. Now it is going to enter on a large-scale to India, the second largest populated country in the world. What will happen to the 4 crore of small traders and their families coming to about 10 crore?  Lakhs of farmers committed suicide after the MNCs came in the sector. Now what will the suicide numbers on the retail sector?
                UPA II government is not worried. They are celebrating the success of the  top reforms which will only benefit the corporates and the ruling class.
                  These anti-people policies and decisions have to be defeated by sustained joint struggles and massive agitations.