I have been seeing many such images/posts floating around social networking sites which caught my attention. I would like to put my views on the same. Before I begin just want to emphasis that everyone
knows in any decision there has to be both positives and negatives. I am
expressing my opinion here with both positives & negatives (as truly as
possible) weighing it which in turn supports FDI for India(just for example I
am taking retail sector going forward).
I believe these are the points which always holds
GOOD/TRUE in this materialistic world(at least) .
- Everyone needs incentive for the work they do(read it as we wish to work only if we knew we will receive incentive)
- Money is the incentive most (if not all) wish to take for their work.
- Huge issues/problems needs dedicated focus & organized way of tacking it.
- New technologies do *NOT* kill all jobs rather redistribute it. New technology demands skilled labor (different/effective way of solving problems).
If you do *not* accept to any of the above points
you can stop reading further as I am sure it will not make sense .
India has Huge problems (restraining to retail
industry). Listing out few (btw, regional & communal issues also come into
picture :P)
- In India, the food chain flow (referring to the chain where food is produced by the producer till it reaches the consumer of it) is *NOT* organized, thus tons of food go waste in some region & millions are out with no food in some other region (problem of understanding demand and supply).
- Food costs surges as many middle-men participate in the food chain flow. This unnecessarily puts burden on consumers.
- India lacks quality infrastructure (like refrigeration) which is a must have for many retail products.
So how do we tackle these huge problems? I can think
of the below few,
OPTION 1: Develop infrastructure (need money, we are already
in debt!!) & train the suppliers(education is a bigger issue per se!!).
OPTION 2: Discover a cost effective innovative home ground
technology (research!!..Huh...need money & time for it to mature!!).
OPTION 3: Approach others who have already tackled these
huge problems (they should be interested to solve it!!)
Out of the above list of options OPTION3 is what FDI
is all about (developed nations who have already solved these problems pump in
required amount of money [of course with the idea of getting incentive on a
long run] investing in infrastructure/technology/knowledge transfer in the host
country. The idea is to make sure to redistribute (remember persons were
trained to use technology & to manage backend infrastructure etc etc) the
middle-men from food chain flow in turn reducing the cost of food & having
control over food wastage.
So everything seems to be great, so why many worry
about FDI then?
- The middle-men are out of work (need to adopt to new technology, learn it which they don’t want to). So no easy money.
- What if once the huge problems are addressed the FDI guys monopolize the environment & demand more? (come on!! Let’s try to solve these problem on the first hand and think about these. Also, remember host country people live in democratic country(can cap the FDI limit or reduce too later if that happens)).
Let’s try to solve these big problems learning from
already solved guys then we should be knowledgeable to solve more? ").
BTW, thanks for providing me an opportunity to express my opinion here
