The Government and the Opposition debated the controversial issue of FDI in retail in the Lok Sabha for two days and with the Samajwadi Party and the Bahujan Samaj Party staying away, the Government finally won out. The UPA explained how the inflow of global money and innovation in retail would help the economy, introducing efficiency combined with consolidation and benefiting consumers and farmers. The Opposition expressed concern about the likely effect of FDI in retail on employment, farmers’ bargaining power and the survival of small retail business, especially pop and mom stores. The Opposition parties drew a dismal picture of huge corporations driving poor farmers into distress and small retail shops out of business. Comparison was made with the East India Company swallowing trading rights and then political might. It is not the first time that such arguments were put forward clashing with the aspirations of globalization. The same logic had been hurled against the creation of shopping malls. The anti-FDI forces are now in retreat. Of course, the debate in Parliament was actually a reflection of political combat. The Congress and the BJP swapped roles as both sides had in the past taken contradictory stands.
Mulayam Singh Yadav extolled the virtues of swadeshi but enabled the UPA to win the vote by leading his party out of the House. So did Mayawati and her BSP. The Left was more consistent in its opposition though it may be pointed out that the Left Front government in West Bengal was somewhat wishy-washy about it. The BJP could not be taken all that seriously as the Atal Behari Vajpayee government had in general embraced globalization. The debate could not be de-linked from various other criticisms of the UPA government-corruption, slowdown in growth, cut in the bank rate and the gloom over the stock market. The Rajya Sabha session on this issue will be a bumpier ride. All this is a warning to the UPA about the final showdown in the Parliamentary elections next year. The Congress did not have a cake-walk victory in the battle over FDI in retail.