To Manmohan Singh
I am writing this letter to highlight certain issues which I believe our economy needs to look into. I would first like to start with FDI in retail. Government recently allowed MNCs to entre retail market which I believe will not be beneficially in long run. The decision will certainly help to deal with the problem associated farmers selling the produce to retail market as middle parties will be eliminated etc. I hope farmers will fetch a good price for their produce and prosper eventually. Also I believe that we will see vast employment growth in near future. But my question here is that why do we need outside companies to enter our economy, in a sector which they should never have a control over, to mitigate the problems that we if we want can easily tackle. Why couldn’t we just pass a law that will directly help the farmers and help our own companies to grow instead? For example-passing a simple law like “no middle man allowed” or if they should exist then it has to be properly regulated. But apparently that’s not happening. What I see from this is that foreign companies entering retail sector will take away major source of revenue which actually belongs to Indian companies. By doing so government is certainly not helping Indian companies and economy in long run. Yes it will help common people to prosper since as they will be working for these retail giants but they can also proper by working for Indian companies.
Another issue that I would like to highlight is the foreign exchange market which I believe is either not properly regulated or manipulated to serve the interest of the foreign parties. Indian currency has been the worst performing currency in Asia this year. Economist cited global economic crisis and capital outflow as a major cause. But the global economy is in relative better shape than it was in 2008-2009.And back then India was one of the best performing economies. The currency appreciated to 38 rupee for a dollar. We certainly did not allow foreign companies to capture any major sector of the market. Also what I have realized is that even after allowing FDI in retail I don’t see currency bouncing back to what it used to be. To me it seems that government is trying to help foreign companies by intentionally keeping the currency value down.
I would like to see government working more towards the interest of citizens and local companies than the foreign players. With the recent implemented policies I see India going back to where it was 65 years ago when everything in the nation was controlled by the outsiders.
A Citizen of India
Image Courtesy: [The Viewspaper]
Disclaimer: The above article is the personal opinion of the author and not of the publication.