Skip to main content

FDI in Indian economy

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.

Comments

Post a Comment

Popular posts from this blog

Rejections are Important!

Rejections are part of every individual's life in this world. Be it from life, society, family, friends, office, colleges, business etc., they always hurt. We have a lot of examples of personalities who started with a lot of rejections but ended with awesomely successful life. These days, to cope up with a stress of any rejection is in itself a difficult exercise. Most difficult phase is for students when they face rejections from their most aspired universities all around the world. There could be a lot of reasons behind that, but individuals start to blame themselves for not writing a good statement of purpose or cover letters. But really, is it a matter of concern when we see life as a cycle of success and failures? It's not at all easy to explain your life in mere 500 to 1000 words because world and life are more than college admissions any days and this is not the end of the world. Moreover, human values have no relation with colleges and what they teach to students....
2 comments
Read more

Thank You NITIE! and Mumbai Meri Jaan!

On 11 th June 2015, NITIE’s admission office released 4 th  list of cleared students for PGDIM batch 2015-17. Boom!! I got the last seat … sheer luck I guess. That feeling was just splendid when I got a call from my friend who is studying in IIM Lucknow that Bhai! Ho gea tera. Time was 4:20 PM and I was working on my new project. After that call I started calling my closed ones. I can still feel that moment because when you’re a supply chain and operations enthusiast and you get admission to best B-school in that domain then nothing else can explain your happiness. NITIE is best among all B-schools let it be IIM A, B, C or any else when it comes to supply chain and operations. Big question, Why MBA?  was answered and that too in style. Oh my God! How would that be to go to classes again, meeting new people, living in Mumbai, doing new assignments, late night chats, parties and lot of college fun.  I called my boss personally and told him everything. He was ...
Post a Comment
Read more

An affair with Domestic Violence: A short note

Domestic violence plays a very crucial role in one's personality development particularly when you're on a victim side. For types of domestic violence, check: Domestic Violence in India My family faced domestic violence due to my father. I'm 26 and since the very first day, I started understanding worldly affairs I have witnessed my father abusing my mother every day. She has endured a lot. He has always been an alcoholic and a loser in his life. He married at the age of 22 when my mother was 18 and after one year I was born. My brother was born after two years. Post-1992, my father never took responsibility of my family. He was in an automotive spare parts sale and repair business in which he lost hold with time and started drinking too much as a solution to face failure. It was a daily routine of my family wherein he would come home and ill-treat my mother. A lot of times my mother tried to support him so that he could stop drinking and focus on starting somethi...
2 comments
Read more