Friday, 19 September 2014

FDI: A Catalyst to Autonomous Economy...

In Bengal, Siraj-ul-daulah lost the battle of Plassey. Quoting Reverend Tagore, I can say, ‘They came as traders  and became bings: Does America and Europe want to duplicate.’
A very warm and cheerful morning to everybody present here. Baptised as Raveena Lamba, I represent Meenakshi Public School. Reverend Judges, Respected teachers and all my fellow mates, I am against this perception that FDI is a catalyst to economic autonomy.
As investors search the globe for the highest returns, they are often draen to places endowned with bountiful natural resources but are handicapped by weak, ineffective environmental and government laws and India led by Manmohan Singh in corset of Sonia Gandhi provided a very bright option to Foreign Direct Investors.

FDI in mutual funds business, in insurance and in banks have been in existence for a long time and FDI in retail is being sold as a magic wand that will solve all of India’s problems.
I believe that FDI is a new form of colonialism in this world of globalization and the age of IT. I agree with it that many countries in recent years have signaled that FDI in their respective territory but to me it is not only the direction in which the world economy is moving.
FDI emphasis that by the means of foreign capital the backward economies can be estimated for further growth, but the supporters of the FDI must acknowledge that no foreign investment can be done keeping in mind the interest of the particular nation which is investing in any country.

We should not forget that unless the local capital is given a space in the country and people are taken into confidence, all foreign investment will be useless. We should even not forget that when East India Company came to India the mughal rulers could not realize their dangers which later on become very clear. So do we want to follow the neo colonialism for our economic growth?
I would say No and Never!!

Our friends Indian economy has swing from being a daring of the world to a damned nation.
FDI in the mutual funds business did not being in any ethics. They enjoyed the support of their home government because they resorted to illegal and unfair practices. The success of FDI in insurance is a question mark. In LIC world, you deal with boring product and slow service and in FDI ruled insurance, you are dealing with better services but questionable practices and products. FDI in banks have not done well though they are selling products.
When FDI retail hit Thailand, 60,000 small shops closed. Next Barack Obama is a supporter of small retailers in his own country but lobbying for Walmart in India and that is a paradox.
Despite the country wide speculation on the plight of various stakeholders, trading associations, politicians have given various arguments against FDI in retailing based on perception.

Current Independence stores will be compelled to close.
Big players can knock-out competition.
Entry of global gaints will force the Indian Tradition Kiryana stores to shut down their business.

The constitution emphasizes on providing equal opportunity to all, the foreign universities would be hardly affordable to the underprivileged sections.
Those who can oil the system through FDI can it cure the problem of price rise of onion and tomato? Or would a home - grown Amul the architects of the milky white revolution, solve the problem?
When the price of onions or wheat surges, the farmers go to another crop. Can FDI change this cyclic nature of production? Would a retail firm with a nice ambience solve this problem?
FDI in retail and the foreign owned mutual fund houses partnered and made the system worse.

Thus foreign ownership is no guarantee of better and transparent system. Self reliance is the key word, given to us by Gandhiji.
Thus I would strongly oppose FDI and foreign is fair is the unsaid claim. World has no money to invest in India, a damned economy which missed the bus thanks to a spineless government.

About the Author:
The Author is Ms. Raveena Lamba, Student (XII Sc. B), Meenakshi Public School
www.meenakshipublicschool.com

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