Saturday, September 28, 2013

Indian Foreign policy

Where do I start? Oh!.. BJP(RSS) announced it's PM candidate as Narendra Modi.. so India  changed.. ok i will come back to this arguement later..
Let's have a look at Indain Foreign policies..What is FII and FDI?
In simple terms: FII: you go to a country,  make some analysis on some factors and you buy some shares hoping that company or sector management is good.
FDI: you to a country, you purchase the land and you start a company from scratch utilizing all the resources in that country.. or you go to a country,  you will do some analysis.. you will collaborate with existing company pushing your management in to that company..

Why FDI over FII...
Let us consider the situation of India.. we went liberal in 1991.. and IT was booming  and  contributing to foreign reserve.. FII's sees India's IT boom and invests in IT companies.. and in one day Stock market can pick up heights.. now after few years, Satyam scam came out.. they loose faith in IT.. they shifted to Communication sector.. there was a boom in Mobile/data usage and call charges were down.. spectrum scam came out.. Again they lost faith in communication sector( Have you ever wonder why now mobile/data charges going up? while it was 1p/sec in 2009-10-11..).. then came coal.. coal scam.. minerals ..  Mineral scam.. they lost faith in so many sector.. they take their money and can run.. stock market can go below 10,000 in one day.. because of FII's..  now From last few months,  Still FII's are down.. a question was raised in industry meet though we are free of scams from few months, why FII's backing?
MD of some company from European union  answered ' In a country, where they can't respect their own women, how can they respect  us'


Now Coming FDI, if they are buliding the company from scratch, they can't run away in one day or one month.. so there is a possibility of stability in the market compared to FII's. As compared to last year , China has 10 times more FDI inflows compared to india... China is growing fast with FDI's..

Now coming back to the topic, where i started, if People are not satisfied with UPA, they can go with NDA.. but is Mod's figure as PM candidate will impact NDA stand in 2014?  now it is not going with Ayodhya issue unlike in 1996?
Even people asking if not BJP then who?. Next election is going to determine the face of india.. if people go with modi.. Modi won't sit clam to  Pakistan.. what is his stand with Foreign policy? How is going to deal with China?  is he going to accept the fact that he is human or is he going to take the side of RSS?
Though he is projecting the gurajat as growing state? is it scalable to India? and there are some constituencies, which are not satisfied with modi in gujarat itself? .All these questions are debatable  .. let's wait for another 6 months to see, what will happen?





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