- Corruption mitigation and good governace
- Indian energy security
- Infrastructure and human resource development
Thursday, July 18, 2013
THE NAKED TRUTH ABOUT ( FOREIGN DIRECT INVESTMENT ) FDI
The Indian government unleashes big bang ( Foreign Direct Investment ) FDI reforms and the same have been termed as game changing reforms by all those who have sacrificed their intelligence, conscience and ability to speak for truth at the altar of ruling combine and a hoax by all those who have dumped all these positive human traits in the basket of opposition. It is a pity that not even a single individual from amongst the total polity of the country dare put things in the correct perspective without singing the song of his affiliation.
Firstly, let us all be very clear that poverty alleviation will happen with growth and growth alone which can come only through huge investments in the next gen growth engines, namely
No amount of social engineering, empowerment and redistribution of wealth can bring about poverty alleviation for these are plain and simple election rhetoric aimed solely at fooling the public at large. Sixty five years history of independent India is a mute witness to all this and the country has not achieved anything worthwhile towards the oft touted slogans of poverty mitigation, food , health, education, shelter and a reasonable human existence for all.
While the government widened its doors for FDI in many sectors, Arcelor Mittal has scrapped the project of a Rs 50000 crore steel plant in Orissa and Posco pulled out of a Rs 32000 crore steel mill in Karnatka. Similarly, in spite of the gates being open about a year back to FDI in retail in India, a measure that could have catapulted not only the growth story but changed the lot of millions of workers, farmers etc. no worthwhile investments have come to India.
This only shows that there is simple trust deficit and the foreign entrepreneurs are simply not willing to pour in their hard earned money on the assurances of a polity which cannot be depended upon for their utterances and actions. The ruling polity has to understand that these players are playing with their own hard earned money and are not enjoying the grand perks and prosperity at the cost of public exchequer. Unlike the polity which can afford to be incoherent in their policies, inefficient in their actions and imbibe a couldn't care less attitude in fulfilling their promises for providing the necessary atmosphere and infrastructure for any profitable business activity, these guys want continuity, sincerity and an honesty of purpose at all fronts in the country they step in.
The naked truth about FDI is that it will keep on pouring in tonnes if Indian economy keeps on growing at 9% plus with insignificant inflation. This reality is India's for the asking if and only if India takes on the challenge of corruption, graft and black money mitigation as also providing good governance earnestly.India must understand that God also helps those who help themselves. Let India grow at 9% plus, FDI will get attracted even with the present norms of cap on FDI like flies get attracted to jaggery for if they don't partake in the Indian growth story on India's terms, the emerging Indian industry giants will swallow them in no time.