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FDI is the only tool to revive Indian economy

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FDI is the only tool to revive Indian economy
Nupur Bhargava 09-30-2013 01:34 AM

FDI is the only tool to revive Indian economy


Foreign Direct Investment is a direct investment into business by intensifying commerce into other countries as well. After all the controversy FDI has finally gained ground in India.

For:

- FDI will lead to an adequate pour of funds towards the improvement in various sectors as well as will help in the revenue generation
- FDI will open gates to improved technology as well as skills hence reducing the costs incurred in buying the machinery for efficient work in process
- With FDI coming in picture, it will increase the job prospects hence reducing the unemployment proportion and will also help in providing a improved standard of living
- It will also boost the socio-economic growth in our country from sources like schools, colleges and IT
- It will also increase the import export ratio, hence improving the economic conditions in India

Against:

- Domestic industries are finding it difficult to survive in the industry hence putting the small industries at stake
- Political pressure constantly attempts to rheostat the FDI stream in order to get benefits
- Inflation is high due to poor value of Indian currency in return asking the small businessmen to compensate for the same as there is laxity of money in the market
- FDI in turn would increase the foreign dependency and hence leaving an impact on our technology as well as production.

Conclusion:

- FDI is not the only tool to revive the Indian economy, but yes it can act as a booster to the Indian economy and will be helpful at a time when the Indian rupee is losing its face in the market.
RE: FDI is the only tool to revive Indian economy
Rajani Sharma 12-27-2013 11:52 PM

FDI is the only tool to revive Indian economy


For:

- Foreign direct investment (FDI) in India has played an important role in the development of the Indian economy. FDI in India has enabled India to achieve a certain degree of financial stability, growth and development. This in flow of money has allowed India to focus more on the areas that needed a boost and economic attention, and address the various problems that continue to challenge the country.
- This tool will help in revenue generation which will lead to an adequate flow of funds towards the various sectors which require improvement.
- FDI will open gates to improved technology as well as skills hence reducing the costs incurred in buying the machinery for efficient work in process.
- This will also increase the job prospects in India and hence will reduce the unemployment proportion and will also help in providing an improved standard of living.
- It will also boost the socio-economic growth in our country from sources like schools, colleges and IT.
- It will improve the economic conditions in India by increasing the import export ratio.
- Another advantage of allowing more foreign investments will be that food inflation still hovering in double-digits could ease over time, because investors will most likely be required to invest at least 50 percent in “back-end infrastructure”.
- Agricultural supply chains will be improved from such investments that are badly in need of upgrades.

Against:

- FDI is not the only tool to revive Indian economy as physical infrastructure is the biggest hurdle that India currently faces, to the extent that regional differences in infrastructure concentrates FDI to only a few specific regions.
- While many of the issues that plague India in the aspects of telecommunications, highways and ports have been identified and remedied, the slow development and improvement of railways, water and sanitation continue to deter major investors. Thus these areas should be parallely focused on these areas to revive Indian economy.
- Due to poor value of Indian currency, the inflation is high, which is asking the small businessmen to compensate for the same as there is laxity of money in the market.
- FDI in turn would increase the foreign dependency and hence leaving an impact on our technology as well as production.
- Federal legislation is another perverse barrier for India. Local authorities in India are not part of the approval process and the large bureaucratic structure of the central government is often perceived as a breeding ground for corruption. Foreign investment is seen as a slow and inefficient way of doing business, especially in a paperwork system that is masked in red tape.

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