The central government claims that allowing foreign direct investment into India’s retail sector will benefit small farmers, expand employment and lower food inflation. What has been the experience in India with organised retail so far and what has been the global experience with FDI? Sukhpal Singh (sukhpal@iegindia.org) is currently at the Institute of Economic Growth, Delhi. After being under relentless attack for a week, the United Progressiv Alliance government was forced to...

Global experience in retail trading by MNCs does not tally with the presumptions on which the UPA government's FDI policy is based. IN the course of the debate on the need to permit foreign direct investment in retail in India, two arguments have been advanced often. The first argument is that large organised retail is good for not just consumers, who would benefit from lower prices owing to cost efficiencies...

-The Telegraph   Social networking websites such as Facebook, Twitter and Google have refused to buckle under pressure from the Indian government to take down content that telecom minister Kapil Sibal and the babus on Raisina Hill find objectionable. Sibal told reporters the government wanted the Big Boys of Cyberspace to remove “abusive” comments and images that could ignite a tinderbox of passions in the country but they had refused to do so...

-The Times of India   Tension is brewing once again between the government and internet and social media companies over the telecom and IT ministry's demands to screen user content and remove offensive material before it is uploaded. Sources said over the last three months the government has been in talks with these firms to put in place a monitoring mechanism. On Monday, telecom & IT minister Kapil Sibal met executives from the...

With deep pockets and international sourcing capabilities, global retail chains will outcompete domestic players, displace jobs, and undermine livelihoods. In predictable fashion, the Manmohan Singh government chose to ignore voices of opposition and implement its agenda of permitting foreign investment in the retail trade. While Parliament was in session, the Cabinet met to approve the hitherto prohibited foreign direct investment in multi-brand retail, with a cap of 51 per cent on...