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Saturday, December 3, 2011

Why not FDI in manufacturing sector?

Many may disagree, but Bharat seems to be headed the wrong way on many fronts. FDI in retail being the latest misstep to add to the list of other missteps like the Nuclear Deal, the proposed Communal Voilence Bill, etc.

FDI is welcome in Manufacturing sector only, NOT in retail, financial, Insurance and other services area. The capital invested in these sectors can be pulled away very easily putting enormous strain on the already weakened Indian Rupee (like what in South East Asia in late 1997). We should be like the super power to the North of us, which does not allow anything that is not in it's interest. One only has to visit smaller towns in USA to see how Walmartization has destroyed communities and also see the vacant shopping malls to see how easy the capital flows away. Also one should not forget that many goods sold at Walmart are of inferior quality . In the USA many people of principles and of modest means do not buy at Walmart.
There are many manufacturing units of foreign brands in all types of goods starting from mobile to cars any amount of FDI is welcome in these sectors why is the government not keen on promoting this than seeking FDI in Retail and Service sectors.

The present Commerce Minister, Mr. Anand Sharma is justifying the FDI in retail due to the lack of Infrastructure like Cold Storage Chains etc. Instead of justifying the present misstep, he could focus his energies on getting the money stashed away overseas, which is much larger than the capital required to build a world class infrastructure.

It is sad that we are forced to accept the machinations of the ruling Junta (probably the only non military Junta in the world)/ Coterie. They seem to be hell bent on destroying everything that was Indian. I wish just 3-5% more of the Indian voters would vote for parties which are at the very least more Nationalistic than these self serving parties in power.

Please understand that Communism as a way of life has failed in less than 100 years, capitalism as a way of life has failed in less than 100 years
With best wishes to all for a Bright Future,

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