For most of us FDI (Foreign Direct Investment) in retail is an outdated topic. Few support
FDI and few don’t as FDI has many positives and negatives to list out. For a
moment keeping aside the pros and cons of FDI and let us think about the impact
that FDI has on our economy.
I will try to project this in a different perspective. Let’s go back a couple of centuries in Indian history as we all know history is the greatest teacher. The purpose of East India Company was BUSINESS. There is no denying that East India Company brought money, say FDI or FII (Foreign Institutional Investor). They certainly provided better employment; farmers were paid better; competition and service quality increased and as a negative there were few people who lost their jobs. But what was the ultimate result? THEY RULED OUR COUNTRY.
I will try to project this in a different perspective. Let’s go back a couple of centuries in Indian history as we all know history is the greatest teacher. The purpose of East India Company was BUSINESS. There is no denying that East India Company brought money, say FDI or FII (Foreign Institutional Investor). They certainly provided better employment; farmers were paid better; competition and service quality increased and as a negative there were few people who lost their jobs. But what was the ultimate result? THEY RULED OUR COUNTRY.
OK, since we consider ourselves as more intelligent than our
ancestors and we know our history let us forget about being ruled again.
What was the major impact other than being ruled? It was the change of our lifestyle! Our production, consumption and education pattern changed completely. A country which was self-sufficient with its own resources and style of living started to mimic other’s living pattern. In the pages of history, for a country which was defined by its wealth and lifestyle, the current economic scenario itself is a proof that foreign investment strategies did not work well.
Coming back to FDI in retail, many foreign companies will
come to India and establish their foundations. They will surely provide us
better jobs, better pay and of course few will have the negative impact. But
the biggest question is ‘what impact this will have on our living pattern?’ Is
India ready for this change over again? Is it really necessary for us following
some plan designed for us by foreign nations? Or should our own entrepreneurs
and government device a plan which is better suited for our living and economic
pattern?
I would like to share a picture and a video with this
article. Though these are not 100% related to this article, the picture might
help us understand how the changed pattern affected us in the history. The
video may be helpful in enlightening us about how much wealth is being
extracted from poor countries in the name of trade and help.
Here is the video:
Good one Rahul...!
ReplyDeleteI will accept that FDI in most of the sector will help ourself to improve in many technology.
But do you think increasing the FDI in telecom to 100% will overcome the Spectrum Scam, which is headache for India?
Also increasing the FDI in defence to 49% , is it possible to get the technologies of developed nations since still we are in the condition of developing side in efficient/full harted manner?
and so on....!
In telecom sector, till now the limit was 74%. I don't think any of the carriers now has complete 74% hold (correct me if I am wrong). So you cant expect any company to invest 100%. Moreover there numerous carrier providers in India. So it is quite easy to say 100% FDI is not at all a solution for scams.
ReplyDeleteComing to defence, allowing almost 50% FDI absolutely wont reduce the problems we are facing in defence sector. No country can depend on other countries during war times. For our defence to be strong, we have to be strong from the roots. We just can't depend upon any foreign investments, especially in this sector.
Great Rahul
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