The diktat has worked yet again. Much after opposing entry of foreign retailers, the UP Government has now decided to shut down all organised retail outlets that operate outside malls. As a consequence all Reliance Fresh and Spencer retail stores are closed in the state with immediate effect.
It is simply incomprehensible, and goes beyond the principle of economics. Industrialists who have invested crores outlining their investments, have to shut down their stores overnight for reasons which are still not known but can only be attributed to political gimmicks.
After Left and DMK ruled states, Mayawati has done an unthinkable. In our opinion, it’s just a strategy to kill many birds with a stone. Since the attack on Reliance Fresh stores was carried on by an SP leader and not even in wildest of imagination would BSP support any move of SP.
It seems that Mayawati’s brush with Ambani’s continues as after Anil Ambani’s proposals, its turn of Mukesh Ambani to feel the brunt. The decision may be more prompted with the expectations of an early poll as no party would like to ignore the small traders and farmers.
But politics apart, for a common sense person, the move may have various implications. Indian consumer is getting used to better quality products, wider choice and latest products in comforting surroundings. Just because a dozen so hooligans create a furor, the Government has to put at stake the aspirations of Indian middle class.
The reason cited for closure of shops is that their opening may create a law and order problem; in that case it’s the responsibility of Government to maintain state’s security. And probably everyone would agree that modern retail outlets are not an anti-social business or creating harm to the society.
But the move may have far reaching consequences, immediately it would stop fresh capital investment and may render many youth unemployed. It would lead a loss to the suppliers to these retail stores and affect the contracts it has with producers, traders and property owners.
What next – no business is secure as of now, as one cannot take advantage of it’s capability and prowess but would have to be at the helms of country’s politics. Going by the happenings, may be the Government can order closure of malls since it is affecting other traders and established markets, or it can order closure of restaurants since its if affecting business of street vendors.