deteriorating economy, rising corruption charges and unhappy allies - UPA II is going through its worst phase since they first came to power. If it was not all over, some of the key allies left UPA II recently this, following government's controversial announcement to allow FDI in retail sector. The gravity of the situation could be imagined by the fact the MMS came out and spoke on national television, one of the rarest moment.
So is the FDI so crucial that ruling party had to go out to such an extend where they were so close to losing majoring in the parliament!! We had our moments of success and failures with FDI but is the FDI only way to get out this economical mess? point taken that once a section is opened for FDI, country will open up large opportunity for investors to come in and open their shop. Funds will flow-in, rupee will strengthen and jobs get created. This rolls for few years till such time we see these large MNCs starting to take their profit back to their land or elsewhere. The gain of initial few years, will slow down (not complete stopped though), and we will once again see a falling rupee and need to open up one more sector for foreign investment.
While FDI is certainly helping us come out of a tragic situation, it alone cannot help us float for long. Country needs earning just like any family and for that we (India) must make money from exports, by setting but investments else where from where we get regular income, just like what MNCs plan to do at our land.
We had good success in Information technology, gems & Jewell, textiles, leather and stone and few more industries to count on. This post in not against or for FDI but to bring up a point that FDI is just one of the step and not the only step for economy reforms.
