To The Prime Minister Narendra Modi

India-EU Free Trade Agreement1Globalisation has a bad press. Free trade was never popular. When the UPA government announced the decision to allow 51% foreign direct investment (FDI) in multi-brand organised retail in 2011, the BJP and other opposition parties claimed that this would ruin the nation. A politician even said that she would set fire to the first Wal-Mart store when it opens. But, do you really believe that this would inspire faith and trust in industry?

I do not know about your followers, but it is no longer acceptable to claim that you will set fire to the store of a Muslim or a Christian. Why should different standards apply to foreigners? In a sane world, it would not matter whether a corporation that invests in India is native or not. The ideology of anti-globalisation is based on the belief that foreigners are not people—that they do not have equal rights. That is all there is to it. It is, of course, not true that foreign investment would ruin the ruin local retailers. But, even if it would, so what? I understand why the idea of nationalist appeals to you and the Hindu nationalists, but are local retailers the master race for whom everyone else should suffer privation?

Now, is there anything wrong with an American multinational retail corporation investing in India? You seem to be keen on empowering the poor people in India, by transforming them into skilled workers. But, Indian wages are shockingly low by global standards. This is not primarily because Indian laborers are unskilled, but because the technological means of production are primitive. An ordinary Indian laborer who moves to the developed west might see his wages instantly rising, even up to twenty times of that of the wage he could have earned in India. But, this cannot be because he became incomparably more skilled overnight. He has become far more productive overnight because western firms employ more sophisticated machinery.

Read my column in DNA.