Foreign Direct Investment-The Big Fish

Corruption-The word which was rocking India a quarter before. Won’t there be an another news for this quarter which would put many of the politicians into baffling situation and also the growth of the nation???? Yes it is here!!!!The FDI-Retail which was down to the roots of the Parliaments where political parties showcasing their political insights making it not even to function for the past two weeks .Before coming to the Political side of the issue let me tell you a few facts about FDI. The so called Foreign Investment policy which way long back when East India company entered India for Trade before Independence followed by which we had a lot of investments from Japan and UK(Most dominant investor in India) after the second world war. one must remember the fact that Industrial Policy in 1965(where foreign traders to venture with collaboration in India) and the FDI policy reviews are based on time and political regimes to bring out the partial liberalization in Indian Economy.
Way back to early 1990’s let me tell you an astonishing fact, which helped The Indian Economy to take a turn faced by a severe Balance of payment crisis. How many of them knows that today’s Prime minister in the early nineties who was a finance Minister of India Dr. Singh with the help of World Bank and IMF introduced the macro – economic stabilization and structural program which opened the doors to FDI inflows and adopted a more liberal foreign policy putting an end to License Raj system???It was the time when there was a marked increase in Petroleum prices because of the gulf war. The crippling external debts were debilitating the economy. The nation was left with an amount of foreign exchange reserves which can finance only its three weeks of imports. Inflation reached at its highest level of 13%.Foreign reserves of the country stood high. Even there was a continued political uncertainty in the country during that period(Dr.Narasimha Rao’s Period).India’s credit rating fell in the international market for both short- term and long-term borrowing. It was a mere Economic collapse.

The nation-today Is no where far away from the economic derailment which it faced in the 1991.The FDI-Retail in India where Dr.singh Government move came with a 51% FDI in Multi-brand retail and 100% in single brand retail. We were all aware of global players in Retail Industry like US-walmart,French player-Tesco, IKEA-Swedish giant in furniture retail where they have been provided with 51% FDI by the government, while the remaining 49% of products they sell can be from the domestic players of which 15% limit is for Non-Brand Agro-products likes fruits and vegetables, which is currently being adopted by Indian retail giants like spencers,reliance,more,etc.In terms of Economy, FDI-retail will ease out Inflation which is peaking at the rate of 9.36%,will give out employment opportunities to millions of people. Farmers will get benefitted directly instead of local players making a double cost while selling it to the customers making a big deal in between. I can bet you on that issue even I experienced the price tag of 25kg of rice which I buy in a city is thrice the amount that I can get it from Rice-Mill at a Village. Am not saying that the middle-players should not exist which is the major concern for the Trimmonal congress as well as DMK and many more parties who are all in powers and not as well in their concerned states, instead look at the rate at which we are going to be benefitted!!!The GDP growth which has a sole 14% effect on the Retail industry,wont it be a major success In terms of economy liberalization and achievement???Instead if we are going to take the fact that Middle men are going to suffer in the Indian market which is an utmost concern against the FDI-retail am proud to say that China outraged us in the same issue for which we are against FDI-Retail. Yes!!!Even in most places of china today there are super markets and local players who outraged walmart and so many Foreign Brands, the Local players trends and the style have outplayed global retailers like walmart.I happened to hear that in some parts of villages in china farmers directly come and sell Agro-based goods to local people for which there is an urge among the consumers.

One must also look at the fact that government is setting up the Retail players and those players have decided to put their shops in places where there are more than 1.1 million people. The move will give out a better growth for the nation, direct employment and indirect employment, consumers will be having their products which can be of much quality improved and also at cheaper rates. The opposition government must look at the fact that there will be a better economic insight for the nation and its growth and it’s not the gratification by which they are going to be benefitted as it turns out to be a mere drudgery.