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Fallacy of Retail Sector "Liberalization"


People say Retail industry has to be liberalized, unfortunately they are entirely wrong. Every industry that has ever been liberalized in India, be it roads, power, telecom, textiles, automobiles, resources etc, were government dominated industries. Government was a pivotal player in these industries but a resource-hogging, inefficient, innovation constricting player and survived only due to license raj. Hence it was very important to liberalize these industries by opening the doors to private players. 

On the other hand, Retail Industry has been and has always been a purely private sector venture. What has driven its growth has been the private investments, private job creations and geographical expansions.  This is as liberalized as it could be, only that there is a cap on the operations of MNC retailers. Government has absolutely no presence in this sector and should never have one.

The reason why Retail is so widespread and employs so many millions is due to this openness.

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