FDI means foreign direct investment. When investors from foreign countries invest in other countries, it results into this transaction. Like every transaction, we have merits and demerits for FDI in India. Indian economy is at $2 trillion size currently and target is to achieve $10 trillion within 10 years. Can FDI will help in this or not?
Talking about India's theory or perception on FDI, different groups have different views. After liberalization in 1991, we have permitted FDI in different sectors in 2000 + years or era. Now we have 49% FDI in defense, 100% in multi brand retail,, 100% in railways and many more, but still we have lot of sectors which are not open to FDI. Reasons are many, let's take on some pros and cons considering Indian economy.
Pros: 1. FDI will result into high technology which Indian sectors need very much for innovation.
2. FDI will create jobs, when our 70% of the population is under age of 35.
3. Cheap resources and control on inflation with high quality products at low prices.
Cons: 1. Effect on retail businessmen(Jobs)
2. Monopoly of high technology sectors from foreign.
Considering pros and cons, we do have lot to learn and some to lose, but in totality,FDI will help India in achieving their target of getting $10 trillion wings. However, government has also given some conditions for FDI to control their cons we discussed earlier, like for multi brand retail investment, minimum 30% resources to be procured from SMEs. 50% of the fund to be used in back end infrastructure. These measures are being taken properly by the government and new initiatives are in line to boost the economy of India.
Every government is trying to do its best and hope, current government will help the foreign investors to come and invest in India through "Make in India" campaign and with business friendly norms. India is now doing target business with more start ups and innovation is happening in every sector through government reforms.
Talking about India's theory or perception on FDI, different groups have different views. After liberalization in 1991, we have permitted FDI in different sectors in 2000 + years or era. Now we have 49% FDI in defense, 100% in multi brand retail,, 100% in railways and many more, but still we have lot of sectors which are not open to FDI. Reasons are many, let's take on some pros and cons considering Indian economy.
Pros: 1. FDI will result into high technology which Indian sectors need very much for innovation.
2. FDI will create jobs, when our 70% of the population is under age of 35.
3. Cheap resources and control on inflation with high quality products at low prices.
Cons: 1. Effect on retail businessmen(Jobs)
2. Monopoly of high technology sectors from foreign.
Considering pros and cons, we do have lot to learn and some to lose, but in totality,FDI will help India in achieving their target of getting $10 trillion wings. However, government has also given some conditions for FDI to control their cons we discussed earlier, like for multi brand retail investment, minimum 30% resources to be procured from SMEs. 50% of the fund to be used in back end infrastructure. These measures are being taken properly by the government and new initiatives are in line to boost the economy of India.
Every government is trying to do its best and hope, current government will help the foreign investors to come and invest in India through "Make in India" campaign and with business friendly norms. India is now doing target business with more start ups and innovation is happening in every sector through government reforms.
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