Where the issues related to FDI by the Congress Government are facing criticism from all sides and eventually the situation has reached where their most loyal associates have left them. In this present situation the Government has indicated that it shall continue to implements its policy even without the support of any associate. The public in general feels that the main reasons for this is the presence of two major political parties of Uttar Pradesh i.e. the Samajwadi Parti (SP) and Bahujan Samajwadi Parti (BSP) which have 22 and 21 MPs respectively. The SP despite the facts that it represents the people of the largest state of the Country has ignored the benefits of the general public and continues to support the Congress Government on the protect that they are stopping the BJP as expressed in their own words the “Communal Forces” from taking over. This undoubtedly is not in favor of the public.
In the recent days the Government of the centre has taken major discussions to implement FDI in India which it says were necessary to increase the pace of economic development of the Country and open up new avenues for employment as well as provide consumer goods and services at low cost. The Government scenes to be cornered with these issues and the general citizens feel that the prices of products which are not dependent on Foreign Investment are also beyond the control of the common man to the extent that they are finding it difficult to offered two time meals. Therefore the apprehension of FDI few people are of the opinion that there is nothing left in this country for the poor and the common man. One economist has given to the extent of the questioning the fact that how can the people sitting in A.C. offices understand the problem of the common man. It is pathetic to observe that where the common man is supposed to run his household in Rs. 20 only on the other hand the Government is spending 7000 per person on the dinner party of the Prime Minister. Therefore how will the economic situation of Country improve? Is this the ground realty that after decades of independence our Country’s economic development is dependent only in FDI. Will the Government really be able to strengthen the Economic situation by this initiative?
FDI is a medium through the companies of a country get an opportunity to work in another Country. In simple words FDI means an open invitation to foreign companies to work in our country. Who shall benefit from the FDI, whether the common man of the country or the foreign Investor is hidden in the lap of future. However some statistics available which will clear the doubts that whether the FDI is in favor of our Country or an effort to provide benefit to some foreign nations.
“USA is the biggest beneficiary out of the FDI in the world. In the year 2010 out of the total income of the Country 84% approx. 194 billion dollar came from investment into 8 nations. These countries are Switzerland, the United Kingdom, Japan, France, Germany, Luxembourg, the Netherlands, and Canada. Leaving USA any other country which shall benefit from FDI into India is China which has centralised its efforts on foreign trade only for many years.”
India is one of the fast developing nations in the world and this is the reason why foreign companies are tempted by the market here. USA has been eyeing the market here for quite some years now. The Government of India has fulfilled its desire to invest in various sectors but providing on open invitation. Beginning from 14thSeptember 2012 till date the Government of India has left no efforts to attract the FDI in various sectors. Up to 49% FDI in Aviation, 74% in Information broadcasting, 51% in the multiband retail and 100% in single brand retail along with a proposal for increasing the foreign direct investment to 49% from the existing 26% and the same to be applicable in the pension sector too, all core business sectors have been proposed to start with the FDI.
It is well known fact that “the big fish swallow the small ones”. History has been witness to the fact that when the foreign Companies commence business in any other country they start selling goods and services below their cost in order to eliminate the small traders, and they do so because they are in a position to sustain the initial losses and as a reset their competitors are finished and monopolist situation is created whereby the foreign companies are able to fix the prices of commodities and services at their own sweet will.
If the facts are deeply understood their Mulayam Singh’s concern is not that whether they should withdraw support from the ruling Congress Government but if they do so then the BSP shall provide support to the centre and shall reap the benefits of their proximity with the Congress Government. Everybody understands as to how much Mulayam Singh is concerned about the common man and their welfare, actually he does not want any other party to take advantage of the ruling Congress Government. If SP was the only alternative then also would it continue the support the centre. Undoubtedly it would have continued support to the centre, the reasons for the same would be extract advantages and work on their own terms. They don’t seem to be affected by FDI.
However if we assess the current situation congress is in a very comfortable position where both BSP and SP are in their support and in the coming days the Congress may take certain discussions which might surprise the common man. We shall just stand and become witness to this fact. In the current state we shall become slaves of foreign investors. With great difficulty we have joined independence from one slavery and now we are leading towards economic dependence on foreign investors. Despite enormous resources and manpower we shall have to depend upon foreign investment and the policies laid down by them. Can congress answer the question that whether or not there foreign Companies shall take away their share of profits to their own countries or no?
The congress Government which is advocating in favor of FDI has to be understood thoroughly because it is quite likely that some people might feel in favor of FDI. Here some details of factors are mentioned below which shall help in understanding that the decision to allow FDI is more beneficial or it shall prove to be harmful for the common man.
Advantages:
1. Economic development with the use of various foreign products.
2. According to UPA Government employment to 10 lacs peoples in 3 years time span.
3. Investment of Billions of dollar into the Indian Market through FDI.
4. Increase in import and export with the various nations.
5. People attached and associated with Agriculture shall reap good proceeds for their produce.
6. Increase in financial services with the common man.
Disadvantages:
1. FDI shall affect approx. 50 Lacs business man in India.
2. Distribution of profit and investment ratio still not decided.
3. Economically backward people might suffer difficulties due to increased prices.
4. End of Small retailers.
5. Market places are situated far which increase travelling expenses.
6. Labor welfare policies not clearly defined.
7. Rise in inflation possible.
8. Economic dependence on foreign investors.
9. Problem of unemployment and monopolies.
10. Again India become slaves because of FDI in core sectors
According to the available date the foreign companies stand to gain more than the Indian companies if FDI is allowed. Not only will they use our natural resources but perhaps decide the polices for our products too. This decision may provide huge profit to some industrial houses but the common man shall not be able to reap benefit of this. In case FDI in Insurance and Pension sector shall cause insecurity to the hard earn money of the common man. If we observe, the recent international financial crisis did not impact India that much because we did not have much foreign investments. USA in order to come out of the current financial crisis is using such techniques to benefit only and only itself. Interesting fact is that Government at the centre is talking about providing benefit to the nation and in the process selling the nation in the hands of foreign investors. Indian market will be flooded with foreign Companies in the near future and when they entered the Indian market their primary intension shall be to eliminate medium and small scale Companies and earn huge surpluses also at the cost of exploitation of Indian labor. If we observe the recent example of the foreign direct investment of 26% in Insurance sector we shall see that these companies extracted the hard earned money from the people through ULIPs and used to deduct 80% as charges out of this premium. If we see in this entire scenario these Companies through ULIPs cause billions of losses of the common mans money.
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