How the business class successfully killed the working class in India. FDI in retail can help

Posted on December 23, 2011


The business class rules India. That is the harsh truth. Not the government, not the military but the business fraternity.

Since independence it was the local businessmen who controlled the localized economy with an iron fist . Slowly the evolved into corporate giants bypassing the government regulations through corruption  and finally the government started making regulations and budgets according to the needs of these corporate houses. Today inflation , property market everything is controlled by this group.

With liberalization of Indian economy in the early 90’s we saw honest corporate houses coming up and the IT boom brought in more professional companies like infosys, TCS and few other MNCs who started empowering the working class because the founders themselves belonged to the working class. They started paying the working class good salaries with which the purchasing power improved and finally we started seeing the long dormant middle class (working class) suddenly becoming the kings in early 2000. We started seeing adherence to laws and regulations by these people and also paying up of taxes. People started being optimistic of the Indian economy where they pegged the growth beyond 10 %.

But for this the business class (corporates and local bastards) also had to fall in line. They suddenly started seeing the buying power of people increase. Although this increased their business but lowered their social standings. They would have to obey the laws, pay up the taxes which would result in lower black income as the working class started demanding bills for every purchase. That is when they decided enough is enough. They planned multi-pronged offensive. First all the realty corporates teamed up with other business folks got them buying the bulk apartments,houses in all cash (black money) sales and started driving the property rates up. A normal working class professional can no longer afford a house in all the major cities. The bigger realty houses are paying the smaller ones to keep their rates high even if they are not able to sell or achieve their targets. Slowly they brought in food inflation through typical arm-twisting tactics with the government. When working  professional  could afford a Toyota or Honda (beyond the usual Maruti or Hyundai), the business class went on the offensive buying out German cars or just gifting them. The big fat Indian weddings had gifts of about 11 Mercedes or BMW being given out just as Shagun or Mooh-Dikhai. This improved their social standing. I still have a hard time understanding how do these people running a small mom and pop gorcery store (kirana) or a small toy / novelty gift shop can afford a multi-million worth bungalow or car. They started asserting that if the working class asked for a bill the cost of the product would increase by 10-12 % (to offset the tax bypass). SO we started getting scared and thus the rise of the working class from 2000-2007 was successfully killed in the subsequent years by the business class by following the above mentioned tactics

The only way we can get back at these people is bringing in FDI in retail. Just bring Wal-mart and other retail giants. With this we get

1) Employment for many people. Although Wal-mart is the lowest payer but still it guarantees jobs. It is one of the biggest employers in US or China
2) Control in food inflation: With better storage facilities and bypassing the agents they can directly approach the farmers and we can have cheaper and well maintained food products. India is a seasonal agricultural cop producer. During peak season we see lot of food wastage due to improper storage facilities. Wal-mart can reduce this
3) Professional approach and Returns: Today in India we cannot return any products back even if they are defective, because the business class is full of typical goons who dictate their own terms. To have improvement in customer service quality it is required we get these companies coming in and showing us how to do it. Even a 10 % improvement will be a great achievement
4) Power to the working class: Power to choose good quality products at a cheaper rate will give the power back to working class.

If the menace of the business class is not controlled our lives will soon be ruled by the whims, fancies and luxury needs of these people