In 1608 a foreign company came in India to do business and it made a proposal in front of the emperor, that if his majesty will provide them some land for establishing the company and will grant them permission to do the business in subcontinent then in lieu of that they'll pay huge amount of money to Royal Treasury. The emperor accepted it unknown to the consequences of his decision which he and his innocent public is going to face in coming future. This decision of emperor made us to suffer for almost 200 years and struggle for freedom for 100 years, this whole thing just took place due to lack of awareness and farsightedness & also due to gradually falling economy of the empire.
That company was none other then the "EAST INDIA COMPANY" and we all now know very well that what it did to all of us. It left our people to die when nation was hit by devastating Bengal Famine, it imposed Salt Tax, it demolished our education system, made us to fight for his benefit, made us to live life similar to that of scavengers, it looted us by imposing several taxes, it divided us, the list goes on and never ends. This whole list will be very tiny if it's compared with what our forefathers have suffered.
I'm feared that same is going to be repeated by this FDI as sooner or later they will dominate our economy and will surely influence the decision making of our govt. in favour of them.
There are several reasons given by govt. of India in support of FDI. I will flash some reasons below with my concern in regard of those reason:
1. That it'll bring investment in the country and will uplift our economic growth.
I would like to ask the govt. that are those companies which are coming to our nation are their son in law that they will simply come and invest in our economy without taking anything from us.
for eg- if Walmart comes to India invest 20 Billion $? Will it not earn profit from it and will it not take away that profit from our nation. It will never be like that, in long term they carry huge amount of money away from our nation in form of profit.
Thus in coming future this investment through FDI will become means of carrying wealth away from the country by the Foreign MNCs.
2. With the FDI in retail new jobs will be created.
Will the street retailers not lose their share of profit to these multibrand retail stores?
3. With the FDI in retail, farmers will get right price for their produce
I would like to ask the govt. that this above goal of " making farmer to get right price for his produce" can only be achieved by FDI in retail? It can't be achieved by some other policy like fair price shop policy which directly purchases from local farmer and sells it to local consumer, can it be achieved by banning mediocre. Can't we think some out-of-box policy to achieve this goal.
4. Foreign retail majors will ensure supply chain efficiencies.
When National geographic and other research fellows are studying supply chain efficiencies from our Mumbaia Dabbawalas then why the hell we are running behind some foreign brand that they can evolve supply chain for us. In US and UK they make use of machines in their supply chain because there is lack of human resource but in a nation like India with Billion plus Human resource, don't need much of machines when lot of people are unemployed which are available for employment by providing some basic skill input in them. And we have the capability to make a supply chain run by humans efficient just like Mumbaia Dabbawalas.
When I was in school my history teacher Mr. Johnson told me that "History Recapitulates itself", but at that time I blowed his words as joke. But now when I see all this about FDI my body shivers that the words said by Mr Johnson may come true and again the economy of our nation may come under control of Foreign MNCs.
That company was none other then the "EAST INDIA COMPANY" and we all now know very well that what it did to all of us. It left our people to die when nation was hit by devastating Bengal Famine, it imposed Salt Tax, it demolished our education system, made us to fight for his benefit, made us to live life similar to that of scavengers, it looted us by imposing several taxes, it divided us, the list goes on and never ends. This whole list will be very tiny if it's compared with what our forefathers have suffered.
I'm feared that same is going to be repeated by this FDI as sooner or later they will dominate our economy and will surely influence the decision making of our govt. in favour of them.
There are several reasons given by govt. of India in support of FDI. I will flash some reasons below with my concern in regard of those reason:
1. That it'll bring investment in the country and will uplift our economic growth.
I would like to ask the govt. that are those companies which are coming to our nation are their son in law that they will simply come and invest in our economy without taking anything from us.
for eg- if Walmart comes to India invest 20 Billion $? Will it not earn profit from it and will it not take away that profit from our nation. It will never be like that, in long term they carry huge amount of money away from our nation in form of profit.
Thus in coming future this investment through FDI will become means of carrying wealth away from the country by the Foreign MNCs.
2. With the FDI in retail new jobs will be created.
Will the street retailers not lose their share of profit to these multibrand retail stores?
3. With the FDI in retail, farmers will get right price for their produce
I would like to ask the govt. that this above goal of " making farmer to get right price for his produce" can only be achieved by FDI in retail? It can't be achieved by some other policy like fair price shop policy which directly purchases from local farmer and sells it to local consumer, can it be achieved by banning mediocre. Can't we think some out-of-box policy to achieve this goal.
4. Foreign retail majors will ensure supply chain efficiencies.
When National geographic and other research fellows are studying supply chain efficiencies from our Mumbaia Dabbawalas then why the hell we are running behind some foreign brand that they can evolve supply chain for us. In US and UK they make use of machines in their supply chain because there is lack of human resource but in a nation like India with Billion plus Human resource, don't need much of machines when lot of people are unemployed which are available for employment by providing some basic skill input in them. And we have the capability to make a supply chain run by humans efficient just like Mumbaia Dabbawalas.
When I was in school my history teacher Mr. Johnson told me that "History Recapitulates itself", but at that time I blowed his words as joke. But now when I see all this about FDI my body shivers that the words said by Mr Johnson may come true and again the economy of our nation may come under control of Foreign MNCs.
Wonderful article....very well written.......but your analogy is flawed....I know u happily welcome any debate & accept criticism with open heart...therefore I'm taking liberty to pick apart your points--
ReplyDelete1. They'll make profit...But Indian companies r also making profit abroad.
2. when Indian Railways & Banks started using Computers it was presumed that it will result in loss of jobs. Undoubtedly it prooved wrong.
3. No doubt about this point. Crystal clear.
4. Dabbawala system cannot work everywhere. take the example of Big bazaar...because of electronic bill clearance...transparency, & smooth functioning has been ensured. as they say "to err is human".....machines r better than humans in some areas. it will ensure cheap price for customers.
Customer is the king.......whatever way he gets benefits will prevail. this market system doesn't know Nationalism. & that eg. which u've quote of East India Company & the mistake made by emperor.......that mistake was the destiny of India....by this decision Britishers r allowed... & eventually they gave us freedom from Moguls. same will happen in present time also...Foreign competition has successfully raised the bar of Quality in Manufacturing.....same will happen in Service industry also...so ready to fly high in the open sky of competition...Remember the immortal words of GEETA "Change is inevitable"...whether we like it or not...it is bound to happen...so better to prepare for that.
First of all thanks for giving a thorough reading to my flawed article.
ReplyDeleteI welcome your valued comments.
1. My main motive was not that walmart or some other random company will take away the profit, as it is obvious that when somebody is coming for trade his main motive is to earn profit.
But here govt. is hiding that fact from her innocent voter (public) and just busy in super-emphasizing the investment part. Govt. should mention that what mandatory regulations it had made in its Hyped FDI regarding profit sharing.i.e. what share of profit they'll have to invest i India only & how much of their profit they'll give for social development etc. Just like Tata's and ONGC videsh ltd are doing in African nation.
2. I also have an example in support of my view, when 100% FDI was brought in Rural Infrastructure sector it was said that it'll bring billions of investment. what it brought was is negligible in comparison to what was proposed.
4. I'm not saying Dabbawala system will work over here. But what I was trying to point-out by citing this example is that, we can develop our own system which can be efficient for supply chain management rather on depending on some foreign Multinational. That they will come over here and will develop it for us. and In USA the 75% of Infrastructure related to supply chain and buffer is Maintained by Federal and State Govt. not by companies. So saying this that they will develop SCM for India is not completely trustworthy.
According to GEETA "Change is inevitable". I clearly accepts that because without change our free flowing fresh river like world will become stagnant and will start stinking.
But I'm a admirer of 'gradual-change' not of 'sudden-change' . As sudden changes always bring socioeconomic disruptions.
wah yaar tu to neta ho gaya......journalist to ban hi sakta hai ek achha. give it a try man. I can assure u at the dusk of your career you won't regret. you r good. & interesting thing is u know that u r good. but irony is, despite knowing that u r good in this, u r doing something else. so pls join hand for the noble cause of making this country a Developed Nation. Together we can make a difference..........
ReplyDeletecoming to ur replies, I completely agree to your each n every point. these points r need to be address.
Thanks Buddy for showing faith in me.......
ReplyDeleteI really wanna work for it but 'm not getting an opportunity to show my talent. Actually now a days the journalism have also become so professional that now they also need specialized degrees and diplomas for it, which I don't have. Hard Luck
Hello Gaurav.. I really loved your article... Can u please explain of how Increasing Foreign Investment is re-invitation to East India Company.. Here, all we are talking about is how it will affect our Economy... I completely agree with your points... Can u please relate FDI with East India Company...??
ReplyDeleteI'll be really grateful if u help me out for my debate in college... thanks
Hi Tanuja,
ReplyDeleteAs u know that in 100% FDI the sole owner of the firm will be of foreign descent and they will take away all the profits with them, unless there are some restrictions.
Secondly most of foreign giants which are coming thru fdi are leaders of market hence they may destroy our system, on which lots off people are dependent here, just lyk EIC did.
At last when these global leaders will become super giants in our nation they may start influencing our political system and its decision making same as EIC did, when it entered in India it declared purpose was only trade but with tym its motive changed and became ruler of our nation.