We have been frequently hearing from governments, leaders, media, business and investors using the word FDI and saying it has been reduced or increased in this financial year. FDI term is used in parliament and by entrepreneurs on a daily basis. Have you ever thought about FDI, and what benefits we have?
Foreign Direct Investment is basically a person from another nation investing in India. The companies which have come from the USA, UK, Canada or any other country are FDI. They not only bring capital but collaborate with governments, construct industries, companies and development.
The advantages of FDI are increased money flow for development purposes, improved employment and opportunities for local citizens. Increased revenue and long term growth for India, which also enhances society's thinking in terms of growth. Along with money, they bring skills, knowledge, expertise and exchange of goods. It brings governments and countries help to form good relations and builds strong business ties. Our country would become economically stronger and build value across the world. It would create competition and avoid the monopoly of one entity.
There are a few disadvantages also. Whenever there is FDI, our local investors will lose their value or presence. Like British east India companies back in history would create dominance in India. External involvement in local issues would increase. The wealth they earn would move back to other nations rather than staying with us. Economic dependency on others would create tensions and blackmail at time of crisis. It can create loss and exploitation of employees by paying less and the government losing control over major decisions. FDI has brought growth and development but, at the same time, focusing on being self-reliant and self-dependent would give us freedom and leverage to be in control during economic and natural disasters.
