Bow lower to foreigners.

The government has agreed to every demand by the Swedish furniture maker IKEA which apparently intends to invest Rs 100 billion in setting up stores in India. Not right away, of course, but over a period of 15-20 years. TOI, 23 January. To make it seem a good deal for India the Foreign Investment Promotion Board cleared the proposal which will now be endorsed by the Cabinet Committee on Economic Affairs so that we, the fools, will be grateful that with so many wise heads, led by the World Famous Economist, dissecting the contract line by line the deal must be to our advantage. " The government is committed to play a constructive role in encouraging FDI specially in areas which create jobs and provide technological advancement," said Commerce Minister, Anand Sharma. Oh goody! With Tesco and Walmart being begged to open stores in India we will be flooded with technology and billions of new jobs. Or will we? IKEA is supposed to be a single brand retail company which is allowed to own 100% ownership of its stores provided it does not sell anything except furniture and, like all foreign companies, is required to source at least 30% of its products from local sources. IKEA refused on both counts. It wants to open cafeterias in its stores and will not guarantee buying 30% of its products locally. The government caved in. Now IKEA will be able to sell coffee, tea, pastries, patties and maybe even biryani in its stores. It will import all its furniture from abroad and take home all the profit it makes. What about creating those millions of jobs? Jobs will be created for sales assistants at the shop floor who will be paid Rs 3000-5000 per month to show people around, basically coolies in uniform, while all the managers will be white-skinned Swedes. Tesco and Walmart are large grocers, also known as multi-brand retail in India. They are allowed to hold 51% in their stores which gives them controlling interest. It will be easy for them to source 30% locally. Fruits, vegetables, rice, atta and other food items have to be bought in India because people are resistant to foreign tastes. Besides India has a thriving cosmetic industry which exports abroad. So it should not be a problem for these companies to set up stores in India but both companies have told Mr Sharma that they are still studying conditions in India and are in no hurry to start business here. TOI, 26 January. These companies are required to invest at least $100 million with $50 million for setting up back-end infrastructure which means a cold chain for getting produce from farmers to consumers. The idea is that this will stop wastage of food and bring down prices. Trouble is that the companies will have to set up electricity generating plants and with diesel price rising costs will increase. Also, if the Congress loses the next government may cancel the contract. Poor fellows. All that bowing is having no effect. Maybe if they bowed even lower.....