Is FOREIGN INVESTMENT good for India

Posted by Girish Patil | 9:59 PM

In my opinion foreign investment in India is good because foreign technologies which are very helpful for working in India in every field.
Foreign investment is good for India but at a fix level not for any level. I mean to say that if there is a foreign investment at a very high level do you think Indian companies have the capability to compete against foreign companies???
If there is and investment in India from foreign side is will surely improve our infrastructure and economy as we can see now our SENSEX has reached a level of 20k but you can also see that many companies are unable to even stay in the market against these multinational companies.
In a little bit extent its good and in an another manner its will not be that good for India.

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Foreign Investment is good for Companies, but for the employees it is not a good Thing. There will be less Job security in such private companies which have major proportion of shares owned by foreigners.

Let me tell an example that recently occured. In Centurion Bank of Punjab , which was a private bank which had more than 50% investment by foreigners was sold out to HDFC this year. Here everyone benefited other than the employees. Hundreds of people lost jobs in this bank during the merging of the banks. This is what happens in case of foreign investment. Employees will loose jobs and this will decrease the growth of India.

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