Foreign Direct Investment (FDI) is crucial to India for many factors including latest technology transfer, domestic value addition, promotion of innovation, employment opportunities & overall economic growth. India is welcoming many technology sectors through FDI & Industrial Policies under MAKE IN INDIA & INVEST IN INDIA initiatives under the current Modi Government.
FDI in India is more active since 1991 Economic Reforms under P V. Narasimha Rao Government. Since 1991, there has been an absolute increase of FDI in India under the various Government regimes (Congress, UPA, Janatha Parties Affiliation & NDA). All of them criticized it while in opposition but promoted when they were in power. But still, there are no absolute audit standards for measuring FDI performance at various parameters not even at the bureaucratic level. Government bodies like National Council of Applied Economic Research (NCAER) & Institute for Studies in Industrial Development (ISID) are stressing upon the need of FDI performance standard audit on a regular basis through its research papers & recommendations to Central Government.
Government Ministries (Finance, Commerce & PMO) through which FDI & Industrial policies work, should take a note on the recommendations made by these economic research bodies like NCAER and ISID, and consult them on a regular basis before making any policy decision on FDI . Also, based on the recommendations of these bodies Government Ministries must come up with absolute audit standards of measuring FDI performance in India in terms of technology transfer, domestic value addition, promotion of innovation, employment opportunities & overall economic growth through sector level, state level & national level.
Courtesy/By: Rakesh G.
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16 Jan 2018
