Foreign Direct Investment (FDI) in various fields has played a vital role in economical growth and national as well as international developments of India. Depending to its nature (organizational, commercial, technological, managerial and strategic), the concept of FDI should be considered as a devotee to the economical growth of this country during the past years which its impacts can be easily seen and touched by the nation. Basically FDI will respond more accurately in modern developed countries as the policymakers of first world countries know how to play and arrange an appropriate relationship between the FDI and their export rates. But in a country like India which still has a long way to find a place in First World Countries Table, the category of export has never been taken seriously. Looking at pioneer countries’ experiences conveys the importance of a balance between FDI and export. 

FDI always acts as an intermediate between the domestic market and export. India is capable of export in different fields such as chemical industry, home furnishing, agriculture, jewellery, crafts and artifacts, apparel and textile, leather, plastic as well as metal and steel industry. The investors and industrialists should define a production quality standard for their export and domestic products, in this way the domestic prices can be elevated and export material will meet the international standards for their clients and consumers. Now what is missed in between is FDI which its spillover runs through the country veins as well as accelerating the stimulation of economic growth. Even if it’s supposed to give 100% partnership to the foreign investors and MNEs (multinational enterprisers), by applying this trend the outcomes of the resulted mutual relation between FDI, export revenues and GDP enhances the productivity in different areas and promotes economic development for the good of society.   

Apart from this point, the dilemma of Indian investors and their unwillingness to invest in local and domestic fields can be solved by this approach. Most of Indian capitalists and investors are lost in the concept of partnership with famous international brands in different fields from construction to the most common ones which are their investment in apparel, food and beverage and home appliances of international brands. If the right of partnership with a foreign brand will be taken from them with this current act of government, they obliged to see the urge to invest their money in domestic industries which this leads India to a higher development rate especially in agriculture, textile and chemical fields. Unfortunately the importance of strategic and managerial FDI has lost in the thirst of Indian investors for fame and money and the slogan of India a Better Nation is the victim of their greed and avidity and maybe that can be the noticeable reason for mostly every concerned authority and capitalist regarding their opposition to the issue. 

Fatemeh Behgam,

Jalandhar