India is said to be the finest
destination for foreign direct investments next to China. India was always the
finest destination for foreign powers. The East India Company which came to
India for trade purpose, decided to colonize India after seeing the resource in
India, and disunity among Indians. Both India and China at first followed
soviet model economic system and was reluctant to foreign direct investment,
this system was a failure, so India and China liberalized their economic policy
which includes allowing of foreign direct investment. The economy of India and
China witnessed a rise only after allowing foreign direct investment.
India and China are said to be the
emerging superpowers and foreign direct investment plays a very positive effect
on it, but at the same time there are negatives too. Indian Government allowed
51% foreign direct investment in retail sector amidst strong resistance.Bharatiya
Janata Party were the first to allow FDI,when they were in power.BJP did not
face a strong resistance as Congress is facing now because BJP did not allow
much FDI in retail sector.
India government claims FDI will create job
opportunities. It is true that it will create job opportunities; but it also
raises question, job opportunities for whom? For literates and illiterates.FDI
will recruit people with basic educational qualification. The targeted audience
of FDI will be only upper and middle class people who were slowly adapting to
western style. In order to communicate with these classes of people certain
basic education qualification is necessary.
In India and China basic education is
compulsory for all citizens but the problem in India is, Indian Government will
not check whether everyone is getting the basic free education nor it will take
effort in developing the educational institutions or academic standards. In
China they take measures to check whether everyone is getting free basic education,
even then China is accused of being partial in giving education to the urban
and rural. In India educational system is commercialized so the downtrodden
could not afford to study in private institution.
Along with job oppurtnities, many will
lose their livelihood. The middlemen were the most affected in FDI.The middle
men includes wholesalers, agents, brokers and retailers. In FDI, the foreign
companies will directly purchase products from the producers and sell to the consumers;
this method will help farmers because they will get a reliable fixed price. The
middlemen were always blamed of purchasing from the producers at a very low
cost and selling to the consumers at a high price by fixing a high commission
for them. This has lead to exploitation of farmers and consumers, but they play
a major role in making the life of consumers easy by making the products
available near their living place.
The life of a street vendor is different
in India, they were poor and illiterates. They don’t even have the money to purchase
the goods they want to sell. Every morning they borrow money for high interest
and then purchase the goods they want to sell and in the evening whether they
were able to sell the goods or not, before they return home they have to pay
interest for the money they have borrowed. They sometimes return home without
even a single paisa in their hand, if at all they earn, it will only be helpful
in filling half of their stomach. In time of sickness or special occasions they
will be forced to borrow a large sum of
money with high interest and they strive hard to repay it, sometimes
they could not repay, this has lead to lot of suicides and hard labors.
FDI is not going to vanish the local retail
stores. The local retail stores have established a name among its customers. In
time of need they will lend goods and later collect money without any interest
and also they will provide goods according to their need. In local retail stores
it is not necessary that they have to buy as whole, they even give loosely,
this will help the poor. So the poor will always be the loyal customers of
these stores and foreign companies are not going to open its stores throughout India,
It is going to concentrate mainly on cities. In case of urgent need, everyone
has to approach local retail stores. It also raises question, if the poor lose
their livelihood, can they afford to buy even in this local stores?
Can our businessmen compete with the
foreign powers? First we have to change ourselves. No one can deny that we lack
perfection and honesty. Foreign Powers show much concentration on hygeine,
quality, customer care and in developing the existing business, we lack very
much in these fields. Employee welfare is another important concept in FDI;
this concept does not exist in Indian retail sector. Government should take
steps in preventing the corruption in business and regularly check the
qualities of products sold. Government should help the local business
financially to compete with the foreign powers.
FDI supporters point out China’s economy,
whenever there is a resistance. China is also facing widening inequality
between the urban and rural population, which does not comes to light much.FDI
will yield benefit to our nation and at the same time it will also widen the
urban-rural gap. In order to eradicate this inequality, Government should
create opportunities for rural people too. It is time for us to think
innovatively and work hard to establish the pride of India. Government alone
cannot do it; we citizens should also play a much important role along with government.
Citizens should elect the party which is more favorable to the welfare of citizens,
rather than parties that look for the welfare of those who favors them.
