"Retail FDI will boost food security"

Maryland governor Martin O’Malley in conversation with Governance Now

trithesh

Trithesh Nandan | December 13, 2011



Governor Martin Joseph O’Malley of Maryland, United States witnessed some of the fiery debate on FDI in multi-brand retail while he was in India on a seven-day visit. The governor was here leading a 100-member delegation for initiating business and economic development ties. The group consisting of businessmen, educationists and elected officials was the largest ever in it league to have visited India.

In an interview with Trithesh Nandan, O’Malley says that opening up the retail sector for foreign investment would strengthen food security in India. Edited excerpts of the interview:

You have brought a large delegation to India on a seven-day long trip. How and where do you see the future of Indo - US relations?
We believe in Maryland what US president Barack Obama had said. He believes that relationship between people of India and United States can and should be the defining relationship of our times. I am hugely impressed with what I have seen in India. The market here is so strong and so powerful that the only responsible economic action to take is greater engagement with India. As we face big challenges of securing the world, we feel sometimes that the so-called developed nations can become very adverse to new innovations and new technologies because the entrenched and established way of doing things see those innovations as disruptive and as threat to predictable profit flow.

But what fast-emerging nations offer to this world is the ability to  lead from existing technologies and implement more sustainable and more efficient and more effective new innovations in a place that has such a giant market that it can be readily capitalise once the new innovation is proven. These are the most exciting things foreseeable for Indo-US relations.

You are here at a time when there is a big debate on FDI in retail. Our government cleared a proposal to allow international hypermarket chains like Wal-Mart and Tesco to acquire a 51 percent stake in multi-brand retailers. Even Parliament has been paralysed for nine consecutive days because of the raging debate. What is your thought?

Yes, I have seen some of the debates on the proposed FDI norms. It is a matter of balance and given the potential that India has on moving on foods that grow here to the markets where the food is needed, foreign direct investment (FDI) would be a way to strengthen food security and food supply chains. It is all about the balance in approach.

In Maryland, we invite FDI and Indian companies like Jubilant Biotech and few others also have operations there.

India is experiencing a dip in growth. Business confidence had slumped. What helps your faith in economic relations with India?
Our businessmen see India as a strong, emerging economy that people of India are bringing forth to this world.  We are a global economy and should help each other if we have to succeed. We must become more engaged with this world economy. In order to create jobs, modern economy needs modern investments. Both our economies are based on innovations.

We have chosen to come to India so that, most importantly, we can make a new start. We need to write a new story. It would be economically irresponsible on our part to not to be engaged with India. Our challenge really is to seize the opportunity and to become more engaged with India rather than being less engaged.

Comments

 

Other News

AI: Code, Control, Conquer

India today stands at a critical juncture in the area of artificial intelligence. While the country is among the fastest adopters of AI in the world, it remains heavily reliant on technologies developed elsewhere. This paradox, experts warn, cannot persist if India seeks technological sovereignty.

RBI pauses to assess inflation risks, policy transmission

The Reserve Bank of India (RBI) has begun the new fiscal year with a calibrated pause, keeping the repo rate unchanged at 5.25 per cent in its April Monetary Policy Committee (MPC) meeting. The decision, taken unanimously, reflects a shift from aggressive policy action to cautious observation after a signi

New pathways for tourism growth

Traditionally, India’s tourism policy has been based on three main components: the number of visitors, building tourist attractions and providing facilities for tourists. Due to the increase in climate-related issues and environmental destruction that occurred over previous years, policymakers have b

Is the US a superpower anymore?

On April 8, hours after warning that “a whole civilisation will die tonight,” US president Donald Trump, exhibiting his unique style of retreating from high-voltage brinkmanship, announced that he agreed to a two-week ceasefire with Iran. The weekend talks in Islamabad have failed and the futur

Machines communicate, humans connect

There is a moment every event professional knows—the kind that arrives without warning, usually an hour before the curtain rises. Months of meticulous planning are in place. And then comes the call: “We’ll also need a projector. For the slides.”   No email

Why India is entering a ‘stagflation lite’ phase

India’s macroeconomic narrative is quietly shifting—from a rare “Goldilocks” equilibrium of stable growth and contained inflation to a more fragile phase where external shocks are beginning to dominate domestic policy outcomes. The numbers still look reassuring at first glance: GDP


Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter