Rajiv Dixit on foreign companies
Last week Rajiv Dixit was telling about how foreign companies have been exploiting India since independance with assistance from the government. The result being huge amount of wealth being drained out of the country and weakening of the economy.
Foreign companies are invited by the government from time to time. The government puts forward 4 arguments for such policies :
1. They bring capital.
2. They create employment.
3. They increase the export of the country.
4. They bring technology with them.
Rajiv Dixit in his survey analysed various statistics on Indian economy provided by the government itself and found surprising facts. Government statistics clearly show that as a result of the business being done by the foreign companies funds are clearly flowing out of the country instead of coming in. Most foreign companies as per their official account statements have invested small amounts of capital since their setup in India and now are reaping huge amount of profits from the Indian market. Topping the list is Hindustan Lever a British company. So if clearly funds are flowing out of the country how does capital come in.
Next , the government says that employment increases when foreign companies enter India to do business over here. Clearly enough this fact is known to all that invitation to foreign companies has resulted in rapid destruction of the indigenous industries which though were small scale but had more potential in terms of widespread employment and promote financial equality.
Another argument provided by the government on such policies is that foreign companies increase export of India. On the contrary it has been found that all foreign countries are increasing the imports of the country. Most foreign companies aim at importing goods from their native countries and selling them in India and hence increasining the imports of the country. Many companies simply use the raw material of this country to produce packed goods and sell them at huge profits and hence draining wealth from the country.
It is believed that foreign companies bring technology with them. Surveys show that most foreign companies bring no manufacturing technologies to India and neither do they setup any sort of research and development center in India. Most companies import high-tech components from their native countries and simply assemble them here in India and sell. The only organisation in India that is high-tech is ISRO and DRDO which have developed truly high technology stuff and that too purely indigenous. When technology can be developed indigenously what is the point calling these foreign companies and letting them exploit the Indian market.
It is a known fact that 1 company – the east india company had looted so much wealth from India and it took more than 200 years of struggle to drive them out. Now there are nearly 5000 companies operating in India , selling all sort of crap and draining wealth. Moreover they are rapidly exploiting the natural resources of the country too. Something must be done soon to eradicate them from the country and promote the indigenous industries of the country if the economy is to reach a proper place.