The FDI cliff
- CBI sought part RTI exemption, Govt gave it full
- Screen Awards: Milkha, Ram-Leela and Madras Cafe dominate
- DGCA seeks fresh public objections after clearing AirAsia for take-off
- Delhi: 51-year-old Danish national alleges gangrape, 15 detained for questioning
- I wonder if I will be able to ever reunite with my husband, my kids. I miss them: Devyani
The theme of all the measures pending in Parliament is broadly the same — the sectors have the potential to attract investments, but political anxieties about allowing investment from abroad have stymied it. This obstruction has only helped entrenched interest groups to prosper. It also becomes impossible to develop an investment climate that can be sustained only from within the country. But these issues did not come up during the debate on FDI in retail, and are unlikely to be dissected in the discussions over the forthcoming bills. An IMF data series on global coordinated direct investment shows, for instance, that foreigners accounted for $201 billion of enterprise money in the Indian economy at the end of 2011. At the same time, Indian investment in the rest of the world is nearly $63 billion. These numbers show the extent to which the domestic economy is integrated with the world. Trying to keep retail or insurance out of these mutual flows will not be possible.