The much hyped about subject for the last few days has been the sudden declaration by Congress in India, deciding to open up the Retail Markets.So abrupt and surprising was the move at the least expected times, when our economy is facing grave dangers due to the thought less approach by our government in connection with inflation,black money holders'lists they have, but are not disclosing,thereby saving their own partners, in the action of looting our countrymen, since decades. The opposition to the said FDI today will come around soon, as one by one, all of them will be given their due share for a 'Yes' vote.
Now let us see what happens when the corporate like Walmart enters India. They will begin by selling their products at half the price of prevailing market cost, to shut out the marginal traders who can not afford such luxury, due to their limited Capital and margin,while the corporate such as Walmart would not care or will spends hundreds of millions in the initial stages to make the people go for their goods,naturally so, as it will be cheaper to begin with, for half the price of a small retailer. After some months the small retailer is bound to lose out due to their inability to match the price wars,because of their limited resources.Once the small players perish by huge loss over a period the corporate become a monopoly, and can start to sell their products double the price, as the people by then will be left with no other option but to purchase from them.They not only make a quick buck in no time and the millions spent in the initial stages will be recovered in months.
We can look back to see this pattern when the Coca cola & Pepsi entered and bought out all the local players by either threats of such practices or by simply offering their products at half the price of the local beverage companies.Once they took over or rather bought out all those local players they started to charge double and made huge profits which they took away in billions.
The same tactics will be used by these players too, as they can afford to spend or sell on loss for such times till the local small shop owners close down, after which they will dominate the market and will be at liberty to purchase goods from any where around the world, cheaply and sell with huge margins.
The way our Government is supporting them in all their en devours gives rise to doubts, of big players or the International Mafia, which might be the power behind all such covert/suspect actions of our governments,as they take a piece of the cake and keeps quite, and the actual show is run by the said Mafias.
Other wise, I see no reason for the stubbornness of our Prime Minister, on every such occasion he was seen fighting in favour of these bigwigs internationally. All such actions have been a sell out of our countries' interests.Now after this FDI fiasco too is over, he can relax a content man having done all that his 'masters' asked him to do. He will be patted on the back by those powers, who ever they are, saying "well done old man,now move over your services are no more required by us".