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Making the Indian consumer king

By Yashwant Bhave
Consumer Protection in India has gathered momentum since 1986. This was the year in which the Consumer Protection Act was passed. Quite naturally, this marks a watershed and since then the role of the Government in protecting consumers has been steadily growing. I would, in this article first dwell upon some historical and International perspectives. Thereafter I would present the framework in which the National Policy and the XIth Plan proposals are being developed and implemented.

Historical Perspective: I – The Consumer in Arthashastra
The code for the consumer movement is as old as trade and commerce itself. It therefore, comes as no surprise that Kautilya, the great thinker and author of Arthashastra has made considerable references to protection of consumers in this book. Kautilya makes references to protection of consumers against malpractices and exploitation by trade and industry. He also writes with great insight on problems of short weighment and measures as well as adulteration. He recognized the need for punishment for these offences. It can thus be seen that problems that we are tackling today existed many centuries back. Not only was it known to exist but the practitioners of public management recognized the need to do something about these problems.

Historical Perspective: II – the Consumer in Gandhiji’s Eyes
Gandhiji was not only a great leader but also a forward looking thinker. His empathy with the weak, neglected and marginalized is well known. He very clearly recognized the importance of keeping the consumer in sharp focus while undertaking economic actions. His famous quotation bears repetition :

“A consumer is the most important visitor in our premises. He is not dependent on us, we are dependent on him. He is not an interruption to our work; he is the purpose of it. He is not an outsider to our business, he is a part of it. We are not doing him a favour by serving him; he is doing us a favour by giving us an opportunity to do so”.

Thus the idea of consumer satisfaction and consumer protection is not new in India and has continuously been recognized as an important issue.

International Perspective
Towards the latter part of the 20th century these ideas grew all over the world. There was the famous speech of John F Kennedy recognizing the four rights of the consumers. Leading thinkers outside Government also picked up the thread. Thus Michael Porter in his book “ The Competitive Advantage of Nations” recognized the role of the consumers in his now famous Diamond Model. It was recognized that countries that have demanding consumers have better quality products. This gives these countries a competitive edge. Thus not only does better quality help the consumers but it also helps the producers. Hence, according to Porter, discerning consumers are one of the necessary ingredients for the competitiveness of nations.

MCX LEAD 29 February 2012 contract was trading at Rs 106.15 . What's your view on it?
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