Yesterday, I was reading a column in TOI in which they had recalled all the economy related events of 2013 in India and there I spotted the term FDI. Oh god ! these 3 letters and with them all those newspaper headlines and protests rolled all over my mind again.
FDI - Foreign Direct Investment, a term I did not pay attention on in my whole economics session but a few newspaper readings and some heated protests and discussions made me pick up that economics textbook again. FDI or foreign direct investment means that foreign companies will come to India and establish their business on our land. Sounds simple but is complex if you lend your ears to an economist. According to some of them it will slay the the economic growth of India. I personally consider them correct because the competition from these foreign establishments is fierce and surely our settled businessmen will tackle it but our small grade businesses and general stores will definitely shut down.
So, how to handle this? Let us suppose that FDI is allowed in India. Then what ? In my mind there are 3 points and 2 realities that will make us happy.
1. If FDI is allowed then settled businessmen and NGOs should help the small grade businesses to tackle the competition by providing them financial benefits.
2. The first point sounds somewhat sacrificing, no ?? why should we compromise ?? so, the second way is to fix a constraint on all foreign investments on the type of commodities they can invest in.
3.This one is of Newton's type. If FDI is possible then reverse FDI is also possible. I mean to say that we will invest overseas in our strong areas following the same rules.
Now comes the turn of the 2 realities :
a. Tell me, is there less FDI in India already?? Companies from Italy(Fiat), Japan(Sony, Panasonic), US(Apple), Dell and many more invest in India, then also our economy is at the top. It means we are ready to face the competition.
b.This one is a bit far from practical market view. We indians have a strong belief on our products that this FDI cannot shake. So, be happy and see what AAP can do for us.
FDI - Foreign Direct Investment, a term I did not pay attention on in my whole economics session but a few newspaper readings and some heated protests and discussions made me pick up that economics textbook again. FDI or foreign direct investment means that foreign companies will come to India and establish their business on our land. Sounds simple but is complex if you lend your ears to an economist. According to some of them it will slay the the economic growth of India. I personally consider them correct because the competition from these foreign establishments is fierce and surely our settled businessmen will tackle it but our small grade businesses and general stores will definitely shut down.
So, how to handle this? Let us suppose that FDI is allowed in India. Then what ? In my mind there are 3 points and 2 realities that will make us happy.
1. If FDI is allowed then settled businessmen and NGOs should help the small grade businesses to tackle the competition by providing them financial benefits.
2. The first point sounds somewhat sacrificing, no ?? why should we compromise ?? so, the second way is to fix a constraint on all foreign investments on the type of commodities they can invest in.
3.This one is of Newton's type. If FDI is possible then reverse FDI is also possible. I mean to say that we will invest overseas in our strong areas following the same rules.
Now comes the turn of the 2 realities :
a. Tell me, is there less FDI in India already?? Companies from Italy(Fiat), Japan(Sony, Panasonic), US(Apple), Dell and many more invest in India, then also our economy is at the top. It means we are ready to face the competition.
b.This one is a bit far from practical market view. We indians have a strong belief on our products that this FDI cannot shake. So, be happy and see what AAP can do for us.
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