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  • Category: Miscellaneous

    Mr.Modi's government green signal to 100% Foreign Direct Investment (FDI)

    Mr.Modi's government gave green signal to 100% Foreign Direct Investment (FDI) to foreigners in single brand retail in India. Previously his call to Make in India turn to Foreign investment in India. Previously BJP party is dead against of foreign investments in India. When UPA government allowed 49% FDI investment in India, BJP strongly opposed this move. But the same Mr.Modi's BJP welcoming foreign companies to invest in India 100% in the retail market directly without any hurdles. Economists analyzing this will affect severely small-scale industries and business people of Indian origin. People of India will lose their inherited jobs or business due to stiff competition from foreign retailers. This is simply an act of giving house keys to foreign investors like to East India Company before independence. This green signal foreign investment covers a wide area of services like defense, civil aviation, construction, private security agencies, real estate, news broadcasting etc. So this change turns Make in India to foreign make India. Public commenting on this issue-BJP is saying something and doing something. Folks discuss this issue thoroughly bringing out your strong views regarding this issue.
  • #622495
    The heading of this thread is: "Mr.Modi's government green signal to 100% Foreign Direct Investment (FDI)''. The first line of the thread is: ''Mr.Modi's government gave green signal to 100% Foreign Direct Investment (FDI) to foreigners in India.''

    I clearly and unequivocally state that these two statements are factually wrong and confusing. The Government has today allowed 100 percent FDI under automatic route for single brand retail trading and construction development. Currently, for single brand retail, FDI up to 49 percent is allowed under automatic route.

    Further, foreign airlines can now invest up to 49 percent via government approved route in Air India. In addition, foreign institutional investors (FIIs) can now invest in power exchanges through primary market. Definition of 'medical devices' has been amended in the FDI policy,

    Caution: Explosive. Handle with care.

  • #622507

    BJP need not be considered as a communist or socialist party who are for public enterprises. and state control in everything.
    In economic matters BJP is pro-capitalist, pro-business,pro-private much more than Congress party. So I am not surprised the way they are going on in dis investing public sector, allowing private entry into almost every sector and inviting and allowing foreign investment to 100 percent even in key sectors.

    However what I really wonder is the somersault they are making as narrated in the thread. They are now simply completing the programmes of the erstwhile UPA government which BJP opposed tooth and nail when they were the opposition. I believe that al that the BJP/NDA government now doing would have been done by earlier UPA gov also had BJP not opposed and agitated.

    Though a lot of good base is being worked on by the current BJP/NDA government, their too pro-capitalist and private business, pro-market leniency may make things difficult for the ordinary middle class in their day to day life. How much can they wait for a better times? Slowly disenchantment will set in. The signals are showing.
    So there will again be a repetition of catering to old and some new vote banks. I also feel that the central government should be more transparent so that the ordinary people get to know what is really happening. In the absence of it people are prone to believe rumours and gossip, even planted by vested interests.

    It is because of this lack of transparency and clarity that this government has to go back or withdraw or amend many things that they brought with firework publicity.

  • #622531
    Over the years the BJP also changed and taking stance on the lines of Congress on many issues and this one is the testimony. There is difference of behaviour of BJP when in opposition and now in position. The PM Modi is under compulsion to announce this measure as there are companies who have lined up to do business with India owing to ease of doing business in this country with corruption free atmosphere. But the government must ensure that any such move should not hamper the local brands which are already enjoying patronage and thus there should not closure of Industries in the race to competition.
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #622540
    Mr. Venkiteswaran's comment is absolutely correct. Regarding FDI, on 05-12-2012, Modiji as the Chief Minister of Gujarat tweeted "Congress is giving nation to foreigners. Most parties opposed FDI but due to the sword of CBI, some didn't vote and Congress won through back door." As someone previously pointed out on Whatsapp the NDA Government is nothing but UPA+Cow.
    " Be Good and Do Good "

  • #622559
    I think, there is no problem in 100% FDI in single brand retailing. All the successive governments were following the same pro-market policies. We need money. Money only generates more money. We were not able to generate money internally and hence we need external money. I don't think that Govt will follow the same in other sectors as what anticipated by the Author.
    According to me, increasing the FDI in certain sectors is a security threat, especially banking and civil aviation etc. Many of the so called Foreign Investment companies have dubious records or having cross holdings with dubious entities. Their activities are suspicious. Some of them have terror links. If we allow them to increase their stake, they are getting access directly to our establishments. So, we need to be careful.

    "The most beautiful thing we can experience is the mysterious." - Albert Einstein

  • #622561
    It is true that allowing big foreign companies In our country to start their own business with 100% investment by them only. If it really happens in all the areas many small promoters who are making business in India will be at a loss.
    Earlier in defence sector when we were placing orders on foreign companies there was a clause called as an offset. If any company of foreign origin is getting an order from Indian defence, the company should place orders on other Indian companies to a minimum of 30% of the order value they received. This was ensuring at least some small players to make their business in India. Similarly in this case also government should keep a condition that the required raw materials if available in India should be purchased from India or they should outsource some of the works to the Indian companies. Then only we can say something good is going to happen.

    drrao
    always confident


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