Lok Satta

Wednesday, 05 December 2012 06:02

FDI - THE GREAT CHALLENGE BEFORE POLITICAL PARTIES

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FDI or Foreign Direct Investment is the big taboo word for India politicians but none has put their mind into the rules or the regulatory framework.

A few thoughts:

-    Walmart or other big companies should be asked to source 70% of their goods from India since:
o    India is producing everything from a pin to an elephant
o    Agriculture is a major industry and the well known saying ‘’INDIA LIVES IN ITS VILLAGES” – agriculture forms the back bone of Indian    economy. If our agricultural practices do not match their requirements they should be asked to bring the required technology and implement in the country which will benefit farmers
o    If the quality is not desirable Walmart or other foreign enterprise should bring the technology to upgrade
-    Indian Government wants to appease the foreign entrants and is fearing to make tough rules
-    FDI by foreign entrants will be good for the country as they will bring in modern technology and capital to upgrade or create infrastructure backbone
-    Create a strong deterrent for the companies to do a back door entry into the retail zone viz. Walmart and Easy Day of Bharti Group
-    Real Estate prices being astronomically high in major cities the foreign entrants will have to move into the hinterland which will make it unviable for most. Customers will not travel 50kms/way daily to buy from Walmart or similar foreign enterprise
-    Indian households in most cities do not stock household products like in US or other countries for long periods – they do not have big fridges or homes for storage.

If our government is sincere and legislation is strong we need not fear the advent of companies like Walmart as they will only add value rather than destroying the country.

We are scared as we do not have the guts to make strong legislation protecting our citizens rights and best way out for our politicians is not to allow entry of legitimate corporations which may in the long run benefit our consumers.