discuss the role of fdi in india post reforms.answer in 5 to 6pgs. asap!!
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Hiiiii.....
Here is Answer......
We have so many young people who need jobs, education and skills. Or else, they will become a huge burden to the government if they stay unemployed.
For people to get jobs and for the economy to grow and sustain itself, lots of employment intensive industries should come up, like manufacturing ones. (But they are growing very very slowly)
And for industries to be setup, we need massive infrastructure investment for development.
● Poor Infrastructure - Electricity, Water, Roads, Transport, Raw Materials etc.
● Inefficient supply chain management which leads to food wastage – Less Godowns and Cold chains.
● India has an External debt of $430 billion.Slowdown in manufacturing sector and the growth was only 0.2 percent in the previous year.
● The 12th Five Year Plan says there should be $1 trillion investment in infrastructure in 5 years.
● India's total GDP is 1.8 trillion dollars. USA's GDP is 15.7 trillion!Employment intensive sectors need to attain sustained growth momentum.
● Under the age of 27 - 700 million people!But, we can see that we need an investment of 1 trillion dollars and our whole GDP is only 1.8 trillion dollars. From where do we get the money?
The government can surely not spend so much money.
The private Indian players also cannot spend so much money under PPPs. Because, even they have to take long term loans from somewhere, mostly banks and banks also will not have so much to give.
So, to get some inflow of cash, foreign currency is the only way. If FDI comes in, it brings in fresh hard cash -
○ Will be used for infrastructural development.
○ Will be helpful in capital development in various sectors.
○ Will build efficient supply chains.
○ Will provide jobs for millions through industrial investment.
○ Will bring in state-of-the-art foreign technology.
Many sectors allow only 49% so the effective control is still in India's hands.The regulations are strict too so there wont be any exploitation.Many leftists are worried about FDI because they think the colonialism will repeat again. After all, the Britishers were also a kind of FDIs. ......
I hope it helps.....☺☺☺☺☺☺
======================================
Here is Answer......
We have so many young people who need jobs, education and skills. Or else, they will become a huge burden to the government if they stay unemployed.
For people to get jobs and for the economy to grow and sustain itself, lots of employment intensive industries should come up, like manufacturing ones. (But they are growing very very slowly)
And for industries to be setup, we need massive infrastructure investment for development.
● Poor Infrastructure - Electricity, Water, Roads, Transport, Raw Materials etc.
● Inefficient supply chain management which leads to food wastage – Less Godowns and Cold chains.
● India has an External debt of $430 billion.Slowdown in manufacturing sector and the growth was only 0.2 percent in the previous year.
● The 12th Five Year Plan says there should be $1 trillion investment in infrastructure in 5 years.
● India's total GDP is 1.8 trillion dollars. USA's GDP is 15.7 trillion!Employment intensive sectors need to attain sustained growth momentum.
● Under the age of 27 - 700 million people!But, we can see that we need an investment of 1 trillion dollars and our whole GDP is only 1.8 trillion dollars. From where do we get the money?
The government can surely not spend so much money.
The private Indian players also cannot spend so much money under PPPs. Because, even they have to take long term loans from somewhere, mostly banks and banks also will not have so much to give.
So, to get some inflow of cash, foreign currency is the only way. If FDI comes in, it brings in fresh hard cash -
○ Will be used for infrastructural development.
○ Will be helpful in capital development in various sectors.
○ Will build efficient supply chains.
○ Will provide jobs for millions through industrial investment.
○ Will bring in state-of-the-art foreign technology.
Many sectors allow only 49% so the effective control is still in India's hands.The regulations are strict too so there wont be any exploitation.Many leftists are worried about FDI because they think the colonialism will repeat again. After all, the Britishers were also a kind of FDIs. ......
I hope it helps.....☺☺☺☺☺☺
======================================
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