FDI Facts, & the Need to Follow-Through

 

FDI Facts, & the Need to Follow-Through

On July 9, Prime Minister Narendra Modi, with South Korean President Moon Jae-in, lit lamps(दीपक जलाया ) to a project that is expected(उम्मीद है) to build(निर्माण/गठन) up capacity(क्षमता) for the Korean electronic and electrical giant(विशाल/बहुत बडा) Samsung to make 120 million handsets every year, up from 68-odd million today. Modi promised 1,000 new jobs from this expansion(विस्तार) and 30% exports from the new-expanded unit.

This is now reportedly India’s largest manufacturing unit — although(हालांकि ) the parameters for that claim are yet to be understood. If the distillation(आसवन) of crude oil into products like petrol, diesel, machine oil and so on, is included(शामिल) in this definition of manufacturing, will this claim hold? Nevertheless, the expansion of (विस्तार) Samsung’s plant is significant, not least because India has been consistently(लगातार/दृढ़ता से) slipping in manufacturing. Any new investment(निवेश) in manufacturing is welcome.

However, Samsung had these assets(संपत्ति) from 1996, in the twilight period between the exit of P V Narasimha Rao as prime minister to Atal Bihari Vajpayee. An expansion(विस्तार/वृद्धि), even with a sub-billion dollar investment, does not an investment revolution(क्रांति) make. A giant facility, capable(सक्षम/योग्य) of making about 150 million phones every year, once owned by Finnish phone-maker Nokia, has been lying vacant(ख़ाली) in Tamil Nadu for years. Foxconn, which makes most Apple gadgets, is eager(उत्सुक/इच्छुक) to get this facility up and working and is thwarted(बिगाड़ना/नकाम बनाना) by red tape.

Many things, including confidence in the government at the helm, red tape and cumbersome(बोझिल/भारी) rules of entry hold up foreign direct investment (FDI) in India. This is the reason why FDI growth has fluctuated(घटना-बढ़ना) from a euphoric 155% in 2006-07 to a snail-crawl 3% in 2017-18.

Since a lot of FDI eventually(अंत में/फलतः) turns out to be lover’s promises and discounted on bitter(कड़वा /पीड़ादायक) experience(अनुभव), a look at ground reality is a better indicator(सूचक) of how things are going. This suggests that the world economy, not being in the pink of health, is less than keen on pumping money all over the place — global capital movements are slowing. A corollary(परिणाम/अनुशासनिक) to that is if India wants to attract funds, only Samsung won’t do. But its corporate slogan(नारा), ‘Do What You Can’t Do’, might prod the Indian government into action.

Important Vocabulary

1.Build(निर्माण/गठन)
Synonyms: frame, physique, body, conformation, constitution
Antonyms: mind

2.Giant(विशाल/बहुत बडा)
Synonyms: , colossal, enormous, gargantuan, gigantic, huge
Antonyms: , little, miniature, miniscule, minute, small

3.Eager(उत्सुक/इच्छुक)
Synonyms: ambitious, greedy, hungry, impatient, keen
Antonyms: satisfied, apathetic, disinterested, dispassionate, unconcerned

4.Thwarted(बिगाड़ना/नकाम बनाना)
Synonyms: circumvent, counter, curb, defeat, foil, frustrate
Antonyms: abet, aid, allow, assist, encourage

5.Bitter(कड़वा /पीड़ादायक)
Synonyms: harsh, sour, acid, astringent, tart
Antonyms: bland, sweet, agreeable, content, genial

6.Corollary(परिणाम/अनुशासनिक)
Synonyms: analogy, upshot, aftereffect, consequence, culmination
Antonyms: beginning, cause, commencement, foundation, opening

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