I came across this news
http://www.msnbc.msn.com/id/17276629/

Rarely Indian news is a front page in msnbc.com ( which is a joint venture of Microsoft and NBC ). The contents of the article say walmart will eliminate 40 million retail merchants. On the first read,  I thought, damn, that's bad. A moment later, something in my brain flashed, and now I want to cheer for Walmart.
Here is my rationale.
Though people keep writing about India on path to become super power, I disagree with that. I agree that India will be a super power in future. But I cannot tell you the date. In order for us (I am still Indian citizen) to become super power, two things need to be addressed.

• Infrastructure in India.


• More private employment.

I have heard arguments about politics being the root cause, or corruption, or education, ,,,, something something for the state of affairs in India. I will agree on all of them, but to fix them takes time. For example it might take centuries to eradicate corruption or it will never be eradicated. We still see corruption in America ,
http://en.wikipedia.org/wiki/Jack_Abramoff_Indian_lobbying_scandal

Now, back to my argument.
The first thing I would like to see in India is improved infrastructure. Having access to roads will help a small farmer to sell his veggies in a city and make more money compared to what he makes in the town. So he is benefited, and so does the country ????? Well I am sure he will be benefited, but I have my reservations about the country. Also infrastructure will help companies (both public and private) make more money, create more employment.  But who will layout the roads, airports, railways ???? Its the good old government. Which is corrupt and lethargic? In summary, infrastructure helps the country's economic growth, but the government's slow approach will put the brakes on.

My second comment is about more and more private sector participation in the country's economy. The private companies will want to make money, for themselves then for the employees. They will push the government to improvise the infrastructure. Because it is in their interest that they need to force the government. Of course it takes all kinds of talents plus corruption to get approvals from the governmental. But at least they are getting some roads on the country map. I am happy about that. But these communist guys or even the socialist guys think that these companies are greedy and will kill the Indian small retail business.

Lets go back to my first point of infrastructure .China creates infrastructure then invites companies to do business. On the other hand our government never creates infrastructure for the companies to do business. So the only way that works in India is the reversal, i.e more and more private companies participate in country's economy and force the government to create infrastructure. So creating infrastructure is not going to work. We are left with my second point, which is more and more private employment. Not only the private employment creates infrastructure, it also creates jobs. So the second point is a winner. We need more private companies. For the fact that they create employment , and create( rather force the government)  infrastructure too.

Assuming we have more private companies which forces the country to have better infrastructure. How does this all end up in helping the country's economy? Here is my finding. Earlier I said the farmer makes more money because of improved infrastructure (road) , I am happy for him, but the farmer doesn't pay tax to the country. For this reason I am leaving him alone, I have highest respect for farmers. Because they produce it from the Mother Nature. If I can put radar on business people, the so called retail business people, I can get some facts that will open your eyes. These business people make more money by improving their business, courtesy of the infrastructure (roads) but when it comes to paying tax, I am sure you all know what happens :-)

This is where I want the Wal-Mart’s of the world to come join the party in India.

For the following reasons.

Walmart creates jobs, thus creates a economic level playing field in middle class.

Walmart forces the government to make better roads, railways..... etc.

Walmart makes money for itself , but it pays TAX, which is missing from the 40 million guys who run their thing in the dark.

Walmart creates jobs for the not elitist public. Not every 20 year old in India is IT specilist.


In summary, Walmart pays tax , and so do their employees . This will help the country more than those 40 million guys doing donumberi accounting.
For this single reason, I have highest respect for the private companies ( public limited)  that pay tax and also collect tax  from their employees at source ( salary).