India's Government today has allowed/cleared several things:
- 51% FDI for multi-brand retail.
- 49% investment by foreign airlines in aviation sector
- Sale of equity in four PSUs
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| Foreign Direct Investment |
FDI (Foreign Direct Investment) in simpler terms is allowing a company based in country B to invest in direct production in country A. Generally country A's wages are low or there are other special benefits in investing here; that is why country B's company would be interested in investing.
After these declarations were done, India's PM - Manmohan Singh urged public to support this decision as it will help improve the employment in difficult times; and overall these steps would take India towards positive growth.
Though these are cleared on national level, there's a catch - states on their individual level do have a right to reject the reform. And, sure enough, we have already seen protest against the today's reforms and as well as against fuel hike that we saw yesterday - this was from West Bengal's CM, Mamata Bannerjee. She also used her FB page to state this and gave 72-hour deadline to take back these steps taken by government.
Let's see where all this goes and would we be able to see companies like Walmart tie up and sell directly to customers; which sounds like this would help a common man to get his things in a little less rate. I have my fingers crossed, so should be yours, in hope that India will see new light and any decision that it takes turns out to be great for all.
Do let me know your thoughts about these reforms and would you support the decisions taken by government in past 1-2 days?
1 comment:
We are seeing +ve signs after FDI was announced - we have seen Rupee in its highest value in 4 months. Market has also responded well to these announcements!
Lets see if state governments take the hint and go with the flow..
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