By- Staff Reporter | Date- April 01, 2011
In a move considered as historical for Indian economy, the Government of India on Thursday, March 31 brought in a revised policy for foreign direct investment (FDI) in the country. As per the new policy, the norms are extremely relaxed for Foreign Investment, which is expected to create a huge boost in the country’s economy through foreign firms.
As a part of the new foreign direct investment policy, Government of India has brought significant hopes to oversee firms by to permitting them the equity against imported capital goods and machinery and relaxing the norms regarding convertible instruments and downstream investments. The most important aspect however, of the new policy, is that even 100 % FDI would now be allowed in some areas of agriculture sector of the country, without relying on joint ventures with Indian forms. It is expected that the farm sectors of the country including seeds, plantation, etc. would now see huge investments by foreign firms. The business analysts across the country have welcomed the new policy as a welcome move and have regarded it as the most important move related to joint ventures as well.
However, the Government seemed to have considered only the downward trend of foreign investments in the country and not much heeded to the Indian firms, especially the small scale enterprises and booming industries. Especially with allowing 100% foreign investment in agriculture sector, the Indian authorities have brought up a storm of destruction for small enterprises and local firms. Of course the Indian consumers might see better branding, packaging and glamor in the markets of agricultural sector with 100% foreign investment, but this is bound to lead to a number of blows to the common consumers including a risk of price rise and acquisition or closing down of small scale local enterprises.
As already evident with the policy of Indian Government in the recent years, the Indian state machine is now turning into only a puppet of capitalists and moneymakers. The authorities increase taxes as many as eight times in a year, takes no major step in recovering the black money hidden by Indians (Swiss Bank officials have acknowledged that Indians have more black money hidden in Swiss Banks than rest of the world put together) worth more than 1450 billion dollar, equivalent to around 65,785,630,000,000 Indian Rupees and even goes to the extent of imposing payment restrictions on money transfer entities like PayPal which is set to destroy freelancers. And now, in an attempt to bring more foreign investment, the Government is set to destroy the common man once again. Indian democracy indeed is now only for a few people (and by the same few people) and not for all people. Unfortunately, the average common man is yet unaware of these crimes by his very own rulers.