One more budget was presented today, and one more year lost! There was hope this time again that the Government will finally come up with some visionary, path breaking thinking to tackle the daunting challenges on multiple fronts including runaway inflation, unchecked proliferation of the black-money economy, increasing deficit in social infrastructure including education, healthcare, potable water, and sanitation, and giving a structural boost to agriculture and the hundreds of millions directly and indirectly connected with agriculture.

While there were many expectations that were belied this time too, one of the major let downs relates to maintenance of a status-quo on modernisation of India's archaic consumer goods distribution and retail system, especially relating to food products. For nearly a decade now, various governments have been debating the merits / demerits of having a modern retail system and getting foreign investment. As for modernisation of retail, there is no evidence on the ground that large, organised retail businesses have caused any harm or mass disruption to the livelihood of small, independent retailers.

On the contrary, the potential benefits of modern retail in dampening inflation, creating more and better quality jobs, and leading to investment multiplication through new businesses being created in manufacturing, logistics, and support services are well documented. Unfortunately, even in this budget, the government has tried to shirk from taking any decision by stating that this subject is under discussion.

Hence, the government's silence on reforms including those which could have related to agriculture and farm goods supply chain, and retail, is deafening!

(The writer is Chairman, Technopak Advisors.)

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