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,
Beware! I question everything and everybody.
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.
'Idhuvum Kadandhu Pogum "
Even this challenging situation would ease
" Be Good and Do Good "
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.
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.