With more legislations and bills getting passed in the Parliament of India and also in the state assemblies favouring the foreign direct investments under the tag of Global Trade relations or improving commerce and economic state of the country, India has put herself in a bewilderment of bowing down to the foreign companies and global agencies.The states that follow autonomously on attracting investments from abroad are not actually building the nation, but putting the nation in a perplexed state of ruin damaging the capital and economy of the soil.
India’s small scale industrial sectors are fallen prey into the nets spread by the giants who have been (in)vested with foreign money. There is virtually no objection or scrutinization of the state governments viz., Tamilnadu, Andhra, Telangana, Punjab, Gujarat, and Haryana, whose schemes and plans have been increasingly relying on the stake of Global Gross Investments in trade and commerce. There are no really opposing voices as in the case of the previous UPA government which had been scrutinized and digged heavily for its attempt in passing the FDI in small and medium scale business houses. No question has been raised about what the local economy amounting to lakhs of crores of money has been piped into.
Even as the small and medium sized firms are barred from receiving foreign direct investments as per existing laws, they are virtually made to work on the foreign capital accrued by the giant companies by the means of sub-contracting and other forms of alliances.
Recently, the state of Tamil Nadu has convened a Global Investors meet resulting into a huge 2.42 lakh crores of possible funding through global traders. The Prime Minister Modi has visited 26 countries in 26 months sourcing the funds to the tune of 1.89 lakh crore rupees. This sort of financing would relatively wipe off the in-house capitalization process and internal funding sources. Similar trend is seen in the other states as well.
At the time of heading for a rapid industrialization and modernizing our industrial sector, India has been making a quick buck without realizing the future economic state of the country. It is also noted that the in-house sources of funding are being misused for various schemes that would merely attract peoples’ choices and also for pleasing the votaries of vote bank politics.
Some experts deny this point of view as they continue to insist on the fact that even America has a similar inflow of external economic sources in the form of human resources, imports and outsourcing. Even if economists claim that they are working on such an economic model for India, many political observers see this as a hazardous trend to what India has to deal with the consequences in the longer run. So, the questions do remain: Can India sustain such rapid economic boosts through FDIs at the state level? Is she accounting for any liability in due course? Do all this make India’s economy equivalent to the America’s?
By Balamurali Balaji