Friday 21 February 2014

WAS THE INTRODUCTION OF FDI IN INDIA A WISE MOVE??????


Foreign direct investment is a direct investment into production or business in a country by an individual or company of another country, either by buying a company in the target country or by expanding operations of an existing business in that country.
Foreign investment was introduced in 1991 under foreign exchange management, driven by then finance minister manmohan singh. As Singh subsequently became the prime minister, this has been one of his top political problems, even in the current times. India disallowed overseas corporate bodies (OCB) to invest in India.India imposes cap on equity holding by foreign investors in various sectors, current FDI limit in aviation sector is maximum 49%.
Starting from a baseline of less than $1 billion in 1990, a 2012  survey projected India as the second most important FDI destination (after China) for transnational corporations during 2010–2012. As per the data, the sectors that attracted higher inflows were services, telecommunication, construction activities and computer software and hardware. Mauritius, Singapore, US and UK were among the leading sources of FDI. Based on UNCTAD data FDI flows were $10.4 billion, a drop of 43% from the first half of the last year.

NEGATIVE IMPACTS OF FDI IN INDIA......

 Nobody in urban India is suffering for lack of ‘access’ to food or grocery items. If at all it is the public distribution system that is diseased with corruption and needs to be replaced or removed. TAccess to food is an issue in the remote and rural impoverished areas of the country, where as the fine print tells you, FDI in retail will not be implemented.
 The myth about ‘farm-to-store’ supply chain should end with the simple fact that middlemen will not be removed from the operation but that existing middle men will be replaced by bigger, more organized, more prosperous middlemen. Anyone who knows the business of distribution knows that there is nothing called a direct sale from farmer to retail, unless it is self-owned farm by the retailer.
The idea that the farmer will get a better price for his produce if FDI in Retail is allowed is a baseless suggestion. The open market does not work on altruism and social service. It negotiates the best for itself so it can corner the most for itself. Farmer suicides are not because they cannot sell, as is being written about by irresponsible columnists and business leaders but because they are unable to get remunerative prices for their produce qwing to poor quality produce due to lack of proper crop management or crop failure, an inability to pay back their loans or make ends meet and lose their land.
Consumers will get lower prices is another figment of the lobbyist’s fertile imagination. Prices never come down. Big bazaar or Walmart, prices never come down. The argument is a facetious assault on the principle of growth and inflation. Big retail can at best sell you cheaper potatoes or five such items carefully selected on seasonal variations or bulk deals with producers cheap for only a week and no more.

THE POSITIVE POINTS........

Sufficient flow of capital towards development in various sectors as well as revenue generation.
 Improvement in technology and skill which reduce the cost and increase the efficiency of working process.
Increase in job opportunities in many sectors, resulted as uplifting in their life style and acceptability.
 Social and economic growth due to awareness from various sources like schools, colleges, constitutional body and information technology etc. which is possible due to FDI.
so , is fdi a good or a bad move by india??  ..only time will tell.........

Monday 17 February 2014

TELANDRA

IS THE TELANGANA - ANDHRA SPLIT A REAL POSSIBLITY ???

Telangana is a region in state of andhra pradesh. It comprises of 10 districts one of which is hyderabad. After continued demands over the last decade and  riots  the centre finally decided to go in favour of the split.On 30 July 2013, the ruling Congress party resolved to request the Central government to take steps in accordance with the Constitution to form a separate state of Telangana (the 29th state of India). The city of Hyderabad would serve as the joint capital of Telangana and Andhra Pradesh for ten years. On 3 October 2013, the Union Cabinet approved the creation of a new state of Telangana by bifurcating the existing state of Andhra Pradesh.
On 5 December 2013, Cabinet approved the Telangana draft bill prepared by the Group of Ministers (GoM). The bill awaits approval by Parliament before Telangana becomes the 29th state of the union. but the decision of split is still pending................
As matters stand, the state faces three contentious issues. These are unlikely to be resolved by the GoM, however hard it may try to do so.
First and foremost is the issue of water rights. Major rivers pass through what will be the new state. How these waters will be shared is a tricky question. In India, it is almost a given that inter-state water sharing issues lead to intractable disputes. Punjab and Haryana, Karnataka and Tamil Nadu, and other states are well known examples. These disputes defy judicial solutions and politics over them drags on for decades if not longer. This issue has not been touched so far. This issue will come to haunt planners in the years ahead.
Another major dispute that is brewing is over the access to educational institutions. In Andhra Pradesh, most of the important institutions are located in the Hyderabad region. Now it was never envisaged that Hyderabad would one day be the capital of another state. But take away Hyderabad and you will set back Seemandhra by decades on this front. In fact, leaders of the Telangana Rashtra Samithi (TRS), the party that spearheaded the campaign for a separate state, are already showing reluctance to share these resources with other regions. Making Hyderabad a quasi-UT with the governor of Telangana having executive control over it for 10 years is not a solution.
Then comes the issue of dividing administrative resources. Primarily, this boils down to a new capital for the residual state after Telangana is separated. Hyderabad is not only a capital of Andhra Pradesh, it is a major city of the country in which virtually unquantifiable resources have been thrown in to modernize it. The city boasts of a world-class airport, an information technology hub and a cluster of educational and training institutions. Together, this is a dream collection of what any capital requires. The refrain now is that Vijayawada will become the capital of Seemandhra. But has any thought been spared to the kind of resources that will be required to build a new capital? The process will be financially draining not only for Seemandhra—which may not have adequate resources for the task—but perhaps for the Union government. Who else will foot the bill for fashioning a new capital city?
but these are not the only PROBLEMS.......!!!
There are other states too which are demanding seperation.The states that want to be bifurcated are Gorkhaland, Vidharbha, Saurashtra and Harit Pradesh.
Gorkhaland, proposed name, lies on the northen part of West Bengal, has been demanding a seperate stae since 1907.
Vidharbha is another region in eastern region of Maharashtra state made up of the Nagpur Division 
Saurashtra has also demanded a separate state. Formally known as United State of Kathiawar, it was later renamed as Saurashtra state after much convincing from Sardar Vallabhbhai Patel in 1948. 
Another state that has been proposed for bifurcation is Harit Pradesh, which lies in the western part of Uttar Pradesh.

Sunday 16 February 2014

ARVINDOTICS

....Does the KEJRIWAL era really ends today ??  ..  or he still has the "BRAHMASHTRA"  in his armour...........!!!




 ARVIND KEJRIWAL , the former chief minister of new delhi resigned from his post as cm after strong opposition from both BJP & CONGRESS outside his office. His turbulent 49 days were full of drama and lots of PUBLICITY & DOWN TO EARTH  stuff....
his journey against corruption started about a couple of years ago along with heavywieghts like ANNA HAZARE & KIRAN BEDI  and few others.But theirs route towards CORRUPTION FREE INDIA splitted soon.while anna didn't wanted to enter into politics kejriwal wanted to clean the pond by entering into it ....
Thereby, just 6 months before the delhi state elections he decided to form his own party -THE AAM ADMY PARTY  or simply AAP.
and guess what he got amazing response from common people of delhi .but he did'nt had the clear majority so he had to form a coalition government.............
but the question here is that -did he really stood up to the promises and commitments which he made before the elections???  
well made would say yes (i doubt that)but at the same time there would be many who would be contradicting.he told very clearly that he would not take the support of any other party,he told that he would not take any luxury vehicle or bunglow,he also told that he will investigate and come with the results against various corruption related issues..............  but what was the end result...... he didn't stood up to any thing which he promised. His short tenure was full of publicity stunts and down to earth stuffs......   
but yes his ideas,work methodology and frank character was the talking point over the last one year......
may be he require more fuel in his tank to fulfill our needs...........