We are going to discuss the root cause why talented people of India will face problems if they are not aware of these causes. One of the cause is FDI and How FDI made Indian startups foreign is serious issue.
What do you mean by FDI
FDI means foreign direct investment or foreign direct investment. If a foreign company invests money directly in an Indian company then it is FDI. Like Walmart recently invested in Flipkart.
China’s plan to capture Indian market through FDI
As China’s investment is heavily in startups such as Snapdeal, Swiggy, Udaan, Zomato, Big Basket, Biju, Delhiveri, Flipkart, Hike, MakeMyTrip, Ola, Oyo, Paytm, Paytm Mall by third countries like Singapore or Mauritius.
Aso China’s investment is four billion dollars in Indian startups.Also China’s largest tech companies and venture capital have become major sources of investment in tech-based startups in India.There is a scheme of 100 % FDI in Indian startup. So if the Idea is from Indian the owner is foreigner because of FDI .
The people who own maximum shares will be the owner of that company. Despite the fact who built up and whose hard work it was. Maximum media channels have FDI that’s why the owners are foreign . Furthermore these maximum media channels act like a puppet on the hands of these investors.These startups are worth a billion dollars or more in the market.
Why Indian startups need FDI
As small scale industries have unlimited ideas but due to scarcity of funds they have to borrow money from foreign investors.There were around 10,000 startups in India in 2018. In addition it increased to 1,00,000 by 2020. Additionally startup India also faced the threat facing the Indian retail sector when foreign investment was high. Because of this the field of innovation is going to foreign . Therefore it is driving profit abroad . As a result the country’s balance of import-export is deteriorating which further deteriorates the value of rupee.
Stealing Indian startup in name of investment
The bulk of investment from China comes from Indian startups only . Moreover government is not fully aware of the correct shareholding pattern of most such companies. According to Gateway House, Chinese IT investors invested $ 4 billion in Indian startups over the years.
Also 18 of India’s and 30 unicorns were funded with Chinese investors. But government data shows that investment from China remained unchanged. Despite the government’s efforts to attract capital from neighboring country. This is because most of the investment from China is made through Singapore.
Also read : Remedy of side effects of working for longer time
How much NRI can invest
According to a statement by the Ministry of Commerce and Industry, the government has amended paragraph 3.1.1 of the current FDI policy. Under para 3.1.1, any non-resident body or company can invest in India under FDI policy. NRIs are prohibited from investing only in sectors / activities that are prohibited.
However, a citizen of Bangladesh or any company formed in Bangladesh can only invest here under the government route. On the other hand, a citizen of Pakistan or any company formed in Pakistan can invest in sectors other than defense / space, nuclear power and restricted sectors / activities for foreign investment only under the government route.
Countries who have tightened the FDI rule
Many more countries have also tightened FDI regulations. In 2019, the European Union made rules to investigate FDI, citing security. The US has tightened investigations into investments from China. China was believed to be acquiring large-scale assets in the US. Australia also tightened acquisition regulations by foreign investors in March. The reason of Australia’s brave move view of the danger of selling cheap prices of strategic assets amid the Coronavirus crisis.
Who will get the profit more
Now Indian startups entrepreneurs is encouraging to release more and more VC investors funds. In the last few years, Chinese private sector companies have increased investment in various sectors like telecom, petrochemical, software and IT (IT) in the India market.According to a report released in February 2020, several large Chinese companies such as Alibaba and Tencent have invested in at least 92 Indian startups.
Also in 2021 the housing finance company HDFC Ltd. reported that currently the stake of People’s Bank of China in the company rose to 1.1%. These FDI foreign investors will get the maximum profit when the market will be high. This is How FDI made Indian startups foreign.
FDI in Media
The government has shared information about FDI in digital media. The government is aiming to create a self-reliant and accountable digital news media ecosystem. Besides 26 percent foreign investment has been allowed in digital media. For this, the permission of the government will be necessary to make investment. This will be applicable to those who upload or stream news and current affairs on websites, apps or other platforms. This will also apply to news agencies giving news to digital media.
FDI in retail
Currently there are around two crore retail businesses across the country. Its market is more than 255 trillion rupees. And it about 33% of the country’s gross domestic product. If we talk about the Indian retail market, till now the organized sector dominates and the unorganized sector accounts for 94% of total sales. About 4 crore people are facing unemployment in these areas.
Before allowing 100% investment in this sector, the government has to think and resolve . If 4 or 5 Dhanna companies will be given employment instead of these 4 crore people, who will benefit the country more ? If the company then shops may have to cover their bags.
How to save your startup from FDI
If you want to save your company then go for Indian investment. Many Indian are rich and have the potential to invest. We have to find a solution to find these people and can convince them to invest in Indian Startups. Then only How FDI made Indian startups foreign will change.
Quotes on foreign direct investment
“Foreign direct investment is a key driver of economic growth and development, bringing in new technologies, creating jobs, and enhancing trade opportunities.” – Unknown
“FDI is like a bridge that connects economies, enabling the flow of capital, skills, and knowledge between nations.” – Unknown
“Foreign direct investment is not just about money; it’s about building long-term partnerships and fostering global economic cooperation.” – Unknown
“FDI plays a crucial role in supporting innovation and entrepreneurship, spurring economic transformation and progress.” – Unknown
“Foreign direct investment empowers local businesses by providing access to international markets and enhancing competitiveness.” – Unknown
“FDI is a testament to a country’s attractiveness to foreign investors, reflecting its stability, openness, and potential for growth.” – Unknown
“In an interconnected world, foreign direct investment acts as a catalyst for economic integration and shared prosperity.” – Unknown
“FDI is not just about financial gains; it’s also about sharing knowledge, skills, and best practices for mutual benefit.” – Unknown
“Foreign direct investment brings diversity and dynamism to domestic markets, encouraging innovation and adaptability.” – Unknown
“FDI is a vote of confidence from the global business community in a country’s economic policies and investment climate.” – Unknown
Quotes
“Foreign direct investment serves as a bridge that narrows the gap between different economies, promoting mutual understanding and cooperation.” – Unknown
“FDI is not just about profit-seeking; it’s also about contributing to the social and environmental well-being of host countries.” – Unknown
“Foreign direct investment facilitates the transfer of technology and know-how, driving industrial growth and capacity building.” – Unknown
“FDI is a powerful tool for boosting infrastructure development and improving the overall business environment in a country.” – Unknown
“In the age of globalization, foreign direct investment fosters interdependence and shared interests among nations.” – Unknown
“FDI encourages healthy competition and drives domestic firms to improve their efficiency and quality standards.” – Unknown
“Foreign direct investment brings opportunities for skills development and human capital enrichment in host countries.” – Unknown
“FDI is a strategic partnership that goes beyond economic benefits, contributing to cultural exchange and international relations.” – Unknown
“In a rapidly changing world, foreign direct investment enhances a country’s resilience and adaptability to global challenges.” – Unknown
“FDI creates a virtuous cycle of investment, job creation, and economic growth, benefiting both investors and host countries.” – Unknown
Quotes
“Foreign direct investment brings the world closer together, creating a global economy that thrives on collaboration and innovation.” – Unknown
“FDI acts as a catalyst for economic diversification, reducing dependency on traditional industries and encouraging sustainable growth.” – Unknown
“In the realm of international trade, foreign direct investment is the gateway to accessing new markets and expanding business horizons.” – Unknown
“FDI encourages the transfer of managerial expertise, fostering the development of local talent and skills.” – Unknown
“Foreign direct investment is like a spark that ignites economic progress, unlocking untapped potential and generating prosperity.” – Unknown
“FDI is not just about financial resources; it’s about sharing knowledge and expertise to fuel economic advancement.” – Unknown
“In an era of technological advancements, foreign direct investment drives digital transformation and empowers industries to thrive.” – Unknown
“FDI serves as an engine of job creation, stimulating employment opportunities and driving social development.” – Unknown
“Foreign direct investment is a testament to the interconnectedness of the global economy, where success knows no borders.” – Unknown
“FDI contributes to the creation of a vibrant business ecosystem, fostering innovation and entrepreneurship.” – Unknown
Quotes
“In the pursuit of sustainable development, foreign direct investment plays a crucial role in promoting responsible business practices.” – Unknown
“FDI is a force for economic inclusion, empowering local communities and promoting shared prosperity.” – Unknown
“Foreign direct investment fosters healthy competition, encouraging businesses to strive for excellence and continuous improvement.” – Unknown
“FDI goes beyond financial gains; it also facilitates the exchange of culture, ideas, and values among nations.” – Unknown
“In the face of economic challenges, foreign direct investment provides stability and resilience to national economies.” – Unknown
“FDI acts as a bridge between investors and host countries, fostering understanding and mutual respect.” – Unknown
“Foreign direct investment strengthens diplomatic ties, creating a network of interconnected nations with shared interests.” – Unknown
“FDI drives research and development initiatives, pushing the boundaries of innovation and technological advancement.” – Unknown
“In the age of globalization, foreign direct investment promotes a culture of cooperation and collaboration for collective growth.” – Unknown
“FDI is a catalyst for sustainable development, channeling resources towards projects that benefit society and the environment.” – Unknown
Quotes
“Foreign direct investment is the foundation of a global economy built on trust, cooperation, and mutual prosperity.” – Unknown
“In the realm of international business, foreign direct investment is the lifeblood that sustains economic growth and development.” – Unknown
“FDI is a powerful tool for reducing poverty and promoting social development, creating a better future for all.” – Unknown
“Foreign direct investment is not just about financial gains; it’s about creating a legacy of positive change for generations to come.” – Unknown
“FDI opens doors to new opportunities, empowering countries to harness their potential and achieve sustainable progress.” – Unknown
“In a world of evolving markets, foreign direct investment acts as a catalyst for innovation and disruption.” – Unknown
“FDI promotes cultural exchange and understanding, bridging gaps between diverse nations and societies.” – Unknown
“Foreign direct investment is the fuel that powers economic engines, driving growth and prosperity across borders.” – Unknown
“In the journey of globalization, foreign direct investment is the compass that guides us towards a shared vision of prosperity.” – Unknown
“FDI is a beacon of hope for emerging economies, providing the resources and expertise needed to leapfrog to a brighter future.” – Unknown
Quotes
“Foreign direct investment is the handshake that forges enduring partnerships and cements international relations.” – Unknown
“FDI encourages healthy competition, spurring productivity and driving advancements in technology and efficiency.” – Unknown
“In the pursuit of sustainable development, foreign direct investment is a key driver of green and inclusive growth.” – Unknown
“FDI brings the world’s best practices to local industries, nurturing a culture of excellence and continuous improvement.” – Unknown
“Foreign direct investment is the catalyst that transforms potential into prosperity, turning dreams into reality.” – Unknown
“FDI empowers women and marginalized communities, creating equal opportunities and promoting social equality.” – Unknown
“In the age of interconnected economies, foreign direct investment fosters a sense of shared responsibility for global development.” – Unknown
“FDI fosters resilience in economies, helping them navigate through challenges and emerge stronger than before.” – Unknown
“Foreign direct investment is not just about financial returns; it’s about investing in people and their potential.” – Unknown
“FDI is a conduit for the exchange of knowledge, skills, and technology, propelling nations towards progress and innovation.” – Unknown
Quotes
“Foreign direct investment is a testament to the power of collaboration, as nations work together to build a prosperous future.” – Unknown
“In the world of business, foreign direct investment is the passport to exploring new markets and unlocking untapped potential.” – Unknown
“FDI acts as a catalyst for industrial development, boosting manufacturing sectors and creating a diversified economy.” – Unknown
“Foreign direct investment is not just about financial transactions; it’s about building lasting relationships based on trust and respect.” – Unknown
“FDI is the driving force behind a borderless economy, where nations come together to share expertise and resources.” – Unknown
“In the age of globalization, foreign direct investment is the glue that binds nations together, fostering interdependence and cooperation.” – Unknown
“FDI is the bridge that connects the dreams of entrepreneurs with the capital and resources needed to turn them into reality.” – Unknown
“Foreign direct investment brings innovation and disruption, propelling industries forward and pushing the boundaries of progress.” – Unknown
“FDI is the catalyst for regional development, as investments in one country create a ripple effect of growth in neighboring nations.” – Unknown
“In the pursuit of sustainable development, foreign direct investment is a force for good, driving positive change and social impact.” – Unknown
Quotes
“FDI opens doors to a world of opportunities, empowering nations to diversify their economies and embrace new industries.” – Unknown
“Foreign direct investment is a vote of confidence in a nation’s potential, signaling to the world that it is open for business and growth.” – Unknown
“FDI is the backbone of entrepreneurship, providing the necessary support for startups and small businesses to flourish.” – Unknown
“In the spirit of collaboration, foreign direct investment fosters cultural exchange and mutual understanding between nations.” – Unknown
“FDI is a powerful tool for addressing global challenges, such as poverty, inequality, and climate change, through sustainable investments.” – Unknown
“Foreign direct investment is not just about economic gains; it also contributes to the social and human development of host countries.” – Unknown
“FDI encourages innovation and knowledge-sharing, leading to advancements in science, technology, and research.” – Unknown
“In a world connected by trade and investment, foreign direct investment is the compass that guides us towards shared prosperity.” – Unknown
“FDI creates a virtuous cycle of growth, where success in one sector stimulates progress in others, fostering overall economic development.” – Unknown
“Foreign direct investment is the conduit for global progress, as nations join hands to build a better world for future generations.” – Unknown
Quotes
“Foreign direct investment is like planting seeds of prosperity, nurturing economic growth and reaping a bountiful harvest.” – Unknown
“In a globalized world, foreign direct investment is the catalyst for building resilient and interconnected economies.” – Unknown
“FDI is a powerful tool for leveling the playing field, empowering developing nations to compete on the international stage.” – Unknown
“Foreign direct investment is the bridge that brings diverse cultures and societies together, fostering unity and understanding.” – Unknown
“FDI is not just about capital inflows; it’s about creating an environment that nurtures entrepreneurship and innovation.” – Unknown
“In the journey of economic progress, foreign direct investment provides the roadmap for sustainable and inclusive growth.” – Unknown
“Foreign direct investment is the heartbeat of economic transformation, breathing life into new industries and opportunities.” – Unknown
“FDI is the key to unlocking the potential of nations, unleashing their talents and creativity to thrive in the global market.” – Unknown
“In the spirit of cooperation, foreign direct investment strengthens diplomatic ties and fosters peaceful international relations.” – Unknown
“FDI serves as a conduit for knowledge exchange, enriching local talent and skills with global expertise.” – Unknown
Quotes
“Foreign direct investment is the foundation of a strong and vibrant economy, paving the way for a prosperous future.” – Unknown
“FDI empowers countries to break free from the shackles of poverty and chart a path towards sustainable development.” – Unknown
“In the age of innovation, foreign direct investment fuels the engine of progress, propelling societies towards a brighter tomorrow.” – Unknown
“Foreign direct investment is the catalyst for job creation, enabling individuals to build a better life for themselves and their families.” – Unknown
“FDI builds bridges of opportunity, connecting global investors with local enterprises, and paving the way for mutual growth.” – Unknown
“In the pursuit of economic prosperity, foreign direct investment fosters a sense of collective responsibility towards the global community.” – Unknown
“Foreign direct investment is not just about financial resources; it’s about empowering people and enabling dreams to become reality.” – Unknown
“FDI stimulates healthy competition, driving efficiency and productivity in the pursuit of excellence.” – Unknown
“In a world defined by interdependence, foreign direct investment is the cornerstone of a collaborative and interconnected global economy.” – Unknown
“Foreign direct investment is the fuel that powers the engine of progress, driving societies towards a brighter future.” – Unknown
Quotes
“Foreign direct investment is the beacon of hope that shines bright, illuminating the path to prosperity for nations.” – Unknown
“In the tapestry of global trade, foreign direct investment weaves the threads of cooperation and mutual benefit.” – Unknown
“FDI is the key that unlocks the doors to a world of opportunities, empowering nations to unleash their full potential.” – Unknown
“Foreign direct investment is the building block of economic resilience, fortifying countries against turbulent times.” – Unknown
“FDI fuels the engine of progress, driving forward the wheels of innovation and economic transformation.” – Unknown
“In the realm of economic development, foreign direct investment acts as the catalyst that accelerates growth.” – Unknown
“Foreign direct investment is like a symphony of collaboration, where nations play in harmony for mutual prosperity.” – Unknown
“FDI is the bridge that spans across borders, connecting diverse economies and fostering global interdependence.” – Unknown
“In the journey of economic empowerment, foreign direct investment paves the way for a brighter and more inclusive future.” – Unknown
“Foreign direct investment is the passport to progress, granting nations access to the global stage of innovation and trade.” – Unknown
Quotes
“FDI is the spark that ignites economic revolutions, propelling nations towards unparalleled growth and development.” – Unknown
“In the tapestry of global interconnectedness, foreign direct investment weaves a story of shared prosperity and success.” – Unknown
“Foreign direct investment is the catalyst that turns potential into reality, transforming dreams into tangible achievements.” – Unknown
“FDI acts as a lighthouse in the storm, guiding nations towards stability and economic resilience.” – Unknown
“In the realm of international business, foreign direct investment is the compass that guides nations to new horizons.” – Unknown
“Foreign direct investment is the fuel that empowers emerging economies to soar to new heights of success.” – Unknown
“FDI is the tapestry that brings together diverse cultures, ideas, and talents, enriching the fabric of global development.” – Unknown
“In the symphony of global trade, foreign direct investment orchestrates a harmonious melody of growth and prosperity.” – Unknown
“Foreign direct investment is the bridge between aspiration and accomplishment, helping nations achieve their true potential.” – Unknown
“FDI is the conduit for economic transformation, channeling resources and expertise to nurture growth and progress.” – Unknown
Quotes
“Foreign direct investment is the cornerstone of economic globalization, knitting together the fabric of a connected world.” – Unknown
“In the symphony of international trade, foreign direct investment plays a key role as the conductor of economic growth.” – Unknown
“FDI is the catalyst that sparks a chain reaction of progress, driving innovation and prosperity in every corner of the world.” – Unknown
“Foreign direct investment is the bridge that spans gaps in infrastructure, paving the way for sustainable development.” – Unknown
“In the pursuit of economic transformation, foreign direct investment serves as the compass, guiding nations towards prosperity.” – Unknown
“FDI is the engine that propels emerging economies to rise above challenges and seize new opportunities.” – Unknown
“Foreign direct investment is the key that unlocks the door to a brighter future, empowering nations to flourish and thrive.” – Unknown
“In the realm of international business, foreign direct investment acts as the glue that binds nations in a tapestry of economic cooperation.” – Unknown
“FDI is the currency of trust, as investors and nations work hand in hand to build a foundation of mutual growth and success.” – Unknown
“Foreign direct investment is the heartbeat of progress, as nations unite in pursuit of a shared vision for a better world.” – Unknown
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