When it made the brave and polarising decision to allow FDI in retail,the UPA government appeared to have a plan. It passed an executive order,allowing states to take or reject it. It responded to criticism,explained how retail reform would help diverse sections,and appeared to be considerably invested in it going through the prime minister personally expressed his commitment to this well thought-out decision. And now,after a merciless campaign by the opposition and some of its own allies,unsure of its numbers in an upcoming adjournment motion in Parliament,the UPA has had to sheepishly suspend the plan. And even before they could speak for themselves,TMC leader Mamata Banerjee broke the news,presenting it as a political victory for herself. Which begs the question what was the government thinking? Why set up the decision when Parliament was in session,in a way that invites opportunistic opposition,without mobilising public opinion around a vital reform? As things stand after the backdown,the perception that the UPA can be easily cowed has been strengthened,that it does not have the guts to stand by its convictions or the political artfulness to sell what is essentially a decision that potentially improves the material well-being of many,many Indians. The UPA failed to pitch it as the farmers issue that FDI-in-retail is,to explain how directly selling to big retailers would give them higher returns (with the right precautions),and how rural infrastructure would improve. It could have mobilised consumers,who stand to gain from greater choice and lower prices. It could have followed up its press release and statements by making it a real,resounding issue in the streets,and ensured that its own superior argument was heard over the oppositions fear-mongering. It could have made the inflation point much more forcefully. It could have seized the initiative,instead of letting the opposition get away with framing it as an alien invasion,of big global corporates destroying small shopkeepers. In effect,the government has let the fears of the trader lobby hold up one of the most useful reforms,and,by botching the politics around it,it may have made the whole question of FDI in retail a radioactive one,for a good long time. Assuming that this is genuinely a suspension and not a roll-back as the BJP demands,the government must dedicate itself to doing what it really should have done earlier build greater political consensus around the idea,soften the reflexive posturing of its allies,and then try again.
