Letter to BS: Indian economic interests cannot be compromised for FDI

This refers to your article "Govt counters UNCTAD on FDI" (June 9) in your Kochi edition. There is no doubt that lack of uniformity of a period under comparison would lead to discrepancies in interpretation of decline and growth in Foreign Direct Investment (FDI) between UNCTAD and the government. Such a portrayal will overlook our highest growth in seven quarters during the period between January and March 2018. The official statistics quoted by the International Monetary Fund (IMF) reflect this fact. Statistics apart, the ease in policy stance to encourage inflow of Foreign Direct Investment(FDI) into the economy will ensure continuity in growth and consequent increase in gross domestic product. Nevertheless, Indian economic interests cannot be compromised while encouraging FDI and our policies should not be overridden by political and economic interests of other countries. Further, the global market environment is subject to fluctuating trade policies, especially that of the US. Accordingly, US majors like Tesla and Apple have to review their interests in investing in India to come to terms with our prevailing economic policies. Also, the growth potential of our service sector has to be reviewed and suitable policies drawn up to meet global competition and ensure growth. Countries like China, Australia and New Zealand which are not members of the Regional Comprehensive Economic Partnerships should not be permitted to dictate terms to us on revenue implications made in our economic interests. They should, instead, periodically come to the negotiating table to review mutual policy interests and changes in business stance.

H N Ramakrishna 

Michigan USA