Whether we pass FDI or not, foreign firms are here. Indirectly, like "Wal-mart" has taken over the entire market legally before FDI was ever considered.It is under the guise of another Indian chain store. It invests its funds through the local name.Foreign firms know how to deal with the government's policies and how to get around them.
Many foreign firms operate through a base those countries with whom we do not tax. For instance Mauritius. They have an office in Mauritius and claim that they are from there. We have signed pact with Mauritius that we would not tax them, so that trade is encouraged. Foreign companies take advantage of this to evade taxes.We had not renewed many bilateral treaties, and they take advantage of that and evade taxes.In a changing world scenario, we must keep up.
As per report of ICAR in September 2012,Rupees 44143 crores post harvest losses of horticultural, agricultural and livestock produce has been calculated.So government allowed 100% FDI in cold storage, so that harvests could be saved.In saving post harvest loss, there is need for capital investment to create modern storage capacities. So Private Public Partnerships for infrastructure development schemes will be encouraged.But whether encouraged or not "chain stores" will expand their tentacles and take over our "food chain".They will take over all trades starting from the harvest chain and extending to other consumer items.
Specialists in economy have to put their minds together to find out the devious ways of the foreign markets. And parliamentarians need to take their advice before framing policies.Political games have marred our country's future.