Why FDI is not feasible at this point
By Gopal Krishna Agarwal,
Inviting
foreign direct investment is not the issue, but we need to look at the context
of the entire move. FDI at this juncture does not fit the bill as India has a
number of domestic issues to tackle. We need to look deeper to understand how
and when the investments can really prove fruitful for agriculture and the manufacturing sector. The political and economic conditions of our country in
the current scenario also need to be taken into consideration.
The
government has launched a campaign to show us the merits of their move, but
that's not enough be- cause it requires proof, which they are yet to produce.
When they talk about quality assurance in terms of consumer satisfaction, they
also need to project the cost-benefit analysis. For us, isolated product avail-
ability is not sufficient. At the end of it, people want to know how many
products really benefit them.
The
government quotes examples of countries like China and Indonesia, wherein
despite no caps on FDIs, the local retailers are flourishing But a reality check
shows that China has become the hands of foreigners. The locals may be paid
well, but their ownership has been bartered for the price they are paid. The owners
have become em- ployees in the hands of foreigners. Do we want the same to
happen to India?
Then,
what about procurement? The government needs to give a clear picture of where
are these firms going to procure the raw material from. Agricultural procurements
in the US and Europe are procured at subsidies, and as for China, it procures
subsidised raw material for its manufacturing. So that is one point where we
need clarity.
There are many more such questions, which have raised doubts in the minds of all. How many companies does India open its market to If it is just the major ones such as Wal-Mart, Carrefour and Tes- co, then it is surely going to kill the market by shutting all doors to competition. And it would be significant to point out the Competition Commission of India is not as functional as it should be. That's the context being spoken about.
It
is our domestic problems which provide a background to the opposition to
foreign investments Reports say the net foreign exchange for India is negative.
Thus, the government needs to explain how we can turn it around for our benefit
and make it positive.
The
Indian real estate boom, with its rampant corruption, is not hidden from
anyone. So how does the government plan to solve the problem of exorbitant
property prices, which scares the domestic investors away? As has been said
earlier, India needs to look within and fix its problems first instead of
looking out for foreign help.
Chinese owners have become employees nothing but a puppet in in the hands of foreigners. Do we want the same to happen to India?
