Big corporate houses have effectively punctured the disproportionate euphoria created by the Kangresse party about the decisions on foreign direct investment (FDI). The government should be concerned about the lack of FDI in manufacturing in spite of already relaxed caps on investment there.
Relaxing investment norms merely creates an interest in potential investors but action follows only after the necessary wherewithal exists to fructify investment as a source of return on capital. The government has done little in this regard, whether it is sound land acquisition policy, supportive infrastructure (power, water, etc.), skilled manpower development, graft-free administrative procedures and labor laws. Secondly, between 2000 and now, 20 - 25 % of total foreign investment has been in the services sector alone. This makes it more vulnerable to fluctuations in the global economy as foreign investors desert the sinking ship when they are needed most. Kangresse party is now doing 'Chintan' as to how best they should show FDI reforms a dustbin without any declaration to that effect! But before doing so, Kangresse Party should simultaneously start, from now on, blaming Narendra Modi for failure of their FDI reforms and policy! Jai Bharat Nirman!!
