Extreme nationalism only harms the country's economy

- Atapata-Dhawal Mehta of Arthakaran

- The attitude of not needing imports and only exporting is inappropriate

In terms of fiery nationalism, the ideas of self-reliance, indigenous, self-reliance, self-sufficiency seem arrogant to us but in the name of self-reliance or self-sufficiency we are not trapped in the policy of import substitution which has failed in the past. Due to this policy, which was adopted till 1991, the prices of goods (telephone services, cooking gas, scooters, cars, steel, trucks, new electrical appliances, foreign medicines, etc.) skyrocketed in India due to its black market. We had to wait for years to get a cooking gas or telecom connection or a car or a scooter. Even trivial things like radios required an annual license. India became a country of scarcity. This policy, in economics, was to protect the country's textile industries against foreign competition at any cost, and that is what happened. One thing to remember again is that India does not need self-reliance but interdependence. Self-sufficiency is a dirty word in economics. We have to learn from the bitter experience of the past that all things are made in our country to nurture national pride so that we do not need imports and that we only export to the world is economically detrimental. Where did our self-reliance go when we relied on America and France for advanced weapons and missiles, fighter planes, etc.? In the name of self-reliance or indigenous, the government has in the past levied unbearable taxes on foreign goods. And made imports extremely expensive.

Foreign direct capital in India

India cannot function without direct investment. This direct capital investment comes to India in the form of equity. Foreign investors invest in factories in this country, in mergers and acquisitions of many types of industries, in IT services, to set up new industries, to reinvest the profits of foreign companies in infrastructure for the expansion of industries. Foreign investment in stocks and debentures is known as Foreign Institutional Investment or Foreign Portfolio Investment. It just brings a bullish slump in the stock market. India's target is to export 400 400 billion in 2021-2022. If every country in the world becomes self-sufficient or self-sufficient, then our exports will become zero and millions of people in India will become unemployed.

Foreign investment in India

Foreign direct investment in India is huge so there is no need to assume that the country will be enslaved. Indian industries also invest abroad. Foreign investment only benefits a country that does not establish a monopoly in India and forces the country's industries to adopt advanced management techniques by competing with them. It is also beneficial for India not to have a monopoly on foreign investment in India's infrastructure sector. India received 60 60.97 billion in foreign investment in 2017-18, 62 62 billion in 2018-2019 and 64 64 billion in the calendar year 2020. Foreign direct investment is long term. That is a different matter from foreign portfolio investment. Foreign portfolio investments are made in Indian stocks and debentures. It is opportunistic. When he gets a chance, he runs away from the country and sometimes creates turmoil in the stock market.