Tuesday, October 02, 2007

Reliance Retail in UP

It is a little late to post on this, but a few days back, Reliance Retail was under attack in UP (and a couple of other places - Orissa). At that point, there were two options Reliance retail had, fight or flight. Knowing the current political dispensation in UP and knowing also that it is not entirely a friend of Reliance, Reliance decided to get out of UP. With it went a 1000 odd jobs. Of course, we dont know if this was what the UP government wanted, but Reliance decided to close shop.

Perhaps the government can launch UP fresh and the same goes for the other states, if they want to. Also, great, if they want their traders to continue their current monopoly, great, you will have the voters eating out of your hand.

If you dont want progress, you dont get it. A similar message has been sent to Orissa. Kerala, also will get the same message. Stew in your own juice. Of course, Reliance could have negotiated, bent and perhaps kow-towed to keep those shops open, but this is a smart move.

After all why must Reliance put life and limb at risk of its own employees (apart from investment in infrastructure), when the government couldnt care less? With Reliance exiting, do you think Big Bazaar and the rest of the retail crowd will touch UP? No. So, who loses?


Raakshas said...

Yea, i don't think those people who oppose these shops have any other better ideas. They oppose organised retail just for the sake of it. States opening retail stores is not a good alternative. First of all, a governments job is to govern, not do business. A good example is the inability of the government to do business is the KSRTC.

SG said...

... and you forgot Bengal, where the story is even more pathetic.