The topic for next week's forum which is to appear on Saturday is:

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SS Chitwadgi: There is no justification in foreign direct investment in different sectors. Any foreign concern has only motto of earning by using Indian cheap available labour, to get works proportion to investments preferably saving large profits which go to investor abroad. No Indian interests are served except some sort of employment created.

Be it so, then why these large number of foreign investors works in India consequent to globalization foreign direct investments are expected to reach 10,000 crores per year in mining sectors alone. Primarily for employment of unemployed educated and also as a transfer of technology. When one compares both foreigners earning at the cost of Indian interest in profits and employments, one convinced the latter is adopted. Similarly a number of Indian companies invest abroad.

The Indian government should get prepared to handle large scale industries and the Indian scientists made more capable so that the country becomes industrialized and infrastructures developed. This may involve some time welcome.

Some multinational and foreign companies produce genetically modified seeds, and force them on Indian Agricultural practices. This is high-tech besides very expensive. Those who adopted suffered for market failures. Some committed suicide finding it impossible to repay loans.

Some companies have adopted contract farming using their high-tech but this is uprooting the poor farmer practically from his own farms and he naturally seeks alternate works for his subsistances in towns elsewhere. This is dangerous in both ways in rural as well as urban economy. This migration may upset balance in economy.

Obliviously the present situation is full of threats for poor farmers who depend on farming for existence. Direct investments prove to be not suited, (yet accepted) to Indian conditions at present.

Subhash C Agrawal: Unfortunately one 'East India Company' made Indians slaves for almost a full century. And now there are thousands of 'East India Companies' in form of multinational companies which are dragging countrymen in lucrative loan offers which may be disastrous in time to come.

RK Kutty: Investment in any form, whether FII (Foreign Institutional Investment) or FDI (Foreign Direct Investment) is inflow of capital into the country. It makes the stock market booming. What we start seeing, ever since opening of our market from 1991 onwards, is in a way good for the country but at the same time it is equally bad in several areas. Of course, we have stabilized our economy which had hit rock bottom during a short interval of the late Chandrashekar led coalition government when we had to mortgage our gold reserves. But, the PV Narasimha Rao led Congress minority government stabilized the situation when he brought Dr Manmohan Singh, who was then in a World Bank assignment, to hold charge as Finance Minister. Thereafter, what transformed the Indian economic scenario hardly needs much explanation. At that time, the Leftists, the right wing Bharatiya Janata Party and several Socialists, severely criticized the Congress. One statement of late

PV Narasimha Rao still echoes the minds of several Indians. He had said: Let the investors come and invest in our country. After all we are very much in need of infrastructure. If the investors develop infrastructure for their Institutions, ultimately they are not going to carry it away. That would be the assets of the nation. Through that he sent out a right message, which slowly found acceptability. Even when the Congress government was rooted out, the reform process set in motion by them picked up momentum during the BJP led NDA rule for a period of six years. They were so much obsessed with the growth that they coined the infamous India Shining which in no way could bring any dividend for them. Once again, the Congress was catapulted to power in 2004, this time with the outside support of the Leftists, the hard opponents of globalization/marketisation. But the vehement protestors of sell off of profit making PSUs, mellowed down considerably to the extent that their own party led governments in Bengal and Kerala openly started inviting FIIs and FDIs. They, in fact, bulldozed the reforms process in such a way that they crushed the farmers of Nandigram who opposed TATA's small car project. Budhadev Bhattacharjee, the Bengal CM had to eat his own words there.

Nobody is now opposing FDIs. As of now the US is facing a severe melt down and a recession is knocking at its doors. The two Asian giants- China and India are on a steady growth path. China targets a growth of 8% when India, though aimed a growth of 9% but now sets the goal of 8.5% in 2008-09 physical. Western investors are finding Asian markets quite investor-friendly. But, at the same time, some of the Indian companies like the TATAs are on a buying spree. The recent acquisition of Jaguar and Land Rover from Ford by the TATAs shows a giant leap by Indian premier Institutions capitalizing the global markets like the Steel King Lakshmi Mittal. Therefore, now it is a two-way traffic. But all depends on the US economy which is truant as of now. Every alternate day the Stock Markets go red/ unpredictable. Therefore, nothing can be predicted now. Let us only hope all is well that ends well.

Sushila Tolani: The growth of infrastructure and annual GDP from 8 to 9 per cent is because of international investments being done in India and all this is because of India having emerged as a global power and most suitable investment ground.

Another reason is the bulging population and workforce that attracts investors to make the human resource work economically, as a cause of divestment.

At one time India was short of dollars for imports which made smuggled goods an attraction. As MNCs moved in due to cut-throat competition, every company had to raise its quality level and cut down the retail prices. Due to regular divestment, now our government has billions of dollars and need not ask the World Bank for loans.

With reduction in unemployment the per-capita increased and so did the lifestyle. Now, we get high quality products, medicines etc which use to take a lot of time, money and energy in importing. On the contrary Indian goods are gaining such quality that foreign customers are now interested, resulting in increase in exports of commodities. Either be Tatas, or HDFC bank or LN Mittal these people have stabilized Indian market and carrying it to the zenith.

So this is an opportunity and need for the upcoming and working industrialists that they could get one's anything in this world.

A B Mehta: Foreign Direct Investment should be encouraged in the areas that are yet to be established in the country and require large investment. We have to note that people invest to get profit. They choose areas where there is vast opportunity for growth. This is true for FDI as well.

However one important factor is the impact of global environment. If a better opportunity exists elsewhere, the investor will withdraw, usually after making profit. This can adversely affect the Indian companies involved as well as the stock market where small investors are most likely to suffer.

The choice of area should be regulated by the Government so that it is in the national interest taking in view the opportunity for employment generation as well as the national priority of providing the particular service or product. Simultaneously the process should be efficient to attract such investment without any hurdles, both for investing as well as withdrawing.

Dr. Balak Ram Kashyap: If we want to continue our developmental pace so as to give us 9% GNP or above we have no option but to allow F.D.I. in various sectors of commerce and industry. This step is particularly to be considered in those areas which are heavily capital oriented. If we permit F.D.I. in the country in selected areas it will boost up not only our developmental efforts but will also lead to increased production and productivity. Finance or capital will not come in the way of development. In this age of fast developing science and technology we need expertise and latest know-how which may not be available from indigenous sources alone. Although we have plenty of man power but most of them are illiterate or semi literate and unskilled who are not of much practical utility . Therefore foreign skills will have to be employed till our work force is adequately trained to handle the needed jobs.

Besides for establishing big industries we need sophisticated machinery most of which may be imported which the intending parties may bring with them and we may be spared the trouble.However while allowing D.F.I.in selected areas of our economy national interest shall not be compromised in any way. In drawing up the terms and conditions of the instrument governing the D.F.I. this aspect i.e. national interest shall be fully safeguarded. With a view to ensuring smooth functioning workable and unambiguous procedures and methodology will be put in place.

Thus it may be mentioned that D.F.I. may be allowed in certain selected sectors on experimental basis which may be gradually increased if found profitable and we become more adept in handling the business. Also the D.F.I. will generate employment for our country men.

RJ Khurana: Yes and No. Foreign direct investment in certain non-sensitive and non-security related sectors where we don't have the requisite expertise and foreigners have years of experience behind them, like the infrastructure building and expansion, heavy machinery & steel industry and on-shore and off-shore oil exploration, should be welcomed. However, as far as possible foreign direct investment should be kept out of their owning contiguous vast tracts of fertile agricultural land for whatever purpose, security related industries and retail trade. Parceling out of large tracts of land has resulted in shooting up of real estate prices and drastic reduction in the area under food grains cultivation. For years we have been a surplus nation in food grains but today we fear a food grains crisis. The Government of India and the state governments have to work towards a judicious mix of the local and foreign investments to get the best results.

Sushmita Shrivastava: Foreign direct investment has become a key component of national development strategies for all most all the countries over the Globe, including India. FDI is considered to be an essential tool for jump-starting economic growth through its bolstering of domestic capital, productivity and employment.

Reliance on FDI is rising heavily in our country due to its all round contributions to the economy. The important effect of FDI is its contributions to the growth of the economy. FDI has an impact on country's trade balance, Increasing labour standards and skills, Transfer of new technology and innovative ideas, Improving infrastructure, skills and the general business climate.

Foreign direct investment is considered to be the lifeblood for economic development as far as the developing nations are concerned. FDI to developing countries in the 1990s was the leading source of external financing. The rise in FDI volume was accompanied by a marked change in its composition. That is investment taking the form of acquisition of existing assets (mergers and acquisitions) grew much more rapidly than investment in new assets particularly in countries undertaking extensive privatization of public enterprises MR Nair: Foreign Direct Investment (FDI) is rather new to Indian Society. We have been hearing about it since the introduction of globalisation. During the last few years, foreign investors have been taking interest in Indian Economy and they have invested in various fields. But the government should be more cautious about permitting foreign investors to invest in our country. FDI has become a world phenomenon and even we are investing in foreign countries. It has become more visible these days that even China, which used to raise iron curtain to foreigners some years ago, has opened its both doors widely for foreign investors. Moreover, the Chinese have really taken advantage of the globalisation. We can see Chinese goods all over the country, that too cheap comparing to Indian goods. (Don't think of its quality).

I feel that our government has no need to depend on the foreign investors provided it changes its system and encourage our own 'son of soil' to invest and flourish. The red-tapeism and corruption from top to bottom prevails in government offices makes one feel disgusted. Unless the government do something seriously to improve the present system, it is too difficult to increase our Gross National Product (GDP) and show the world that we can do better without the support of rich countries.

RK Gupta: India has an ambitious plan to uplift the country into the status of a developed country. It has meticulously planned project `the vision 2020. When Indian obtained independence from the British, it was a very poor and undeveloped country. The alien rulers had completely ruined the country in all respects but India progressed tremendously in all the spheres of national life, agriculture, economics, science & technology. Today India is one of the five leading well-developed countries of the world but much is still required to be done as compared to its enormous size and geographical position on the globe. The US, Canada, Japan, Russia, Britain and France are highly developed countries. There is very little left for them to develop. The developed countries are rich enough and are possessing incalculable wealth. The western and other developed countries have plethora of money power which if not invested, it will remain idle and unproductive. India is an emerging global economic giant with population of more than 1.1 billion people out of which 80pc are middle class consumers. Thus India is a big market in the world. The whole world has become a global village. This very fact attracts foreign investment and ventures. Prior to 1990 the foreign investments were not very easy. Many times the foreign investors had to seek clearance from 20 offices. In other words, to invest in India was sheer disgusting. Today the administrative scenery has changed. All the bureaucratic hurdles have been removed.

There is no harm in foreign investments in India. We need the FDI badly to fulfil the vision 2020. India too can progress like Singapore which has zero corruption and welcomes FDI from all countries of the world. The careful, judicious, meticulous FDI would be in the interest of the country and is justified.

Dr Visal A Khan: Legal, economic and financial reforms (LEFR), undertaken by the Indian government (GoI) since the early 1990s have access in substantial and rapid growth in economy and led to the integration into the global economy. LEFR efforts stalled during the weak coalition governments of the mid-1990s, following the 1999 parliamentary elections, the BJP-led govt. launched a second round of economic reforms, which included major privatization, deregulation and tariff reduction initiatives. Annual foreign direct investment in India starting approx. $100 million in the first round to an estimated $5.5 billion in second, and while few barriers continue to restrict this foreign investment, momentum toward liberalization of the Indian economy seems to be irreversible. As a result of its efforts to attract foreign investment, GoI has established a regulatory framework for three separate investment avenues: foreign direct investment (FDI); investment by foreign institutional investors(IFII); and investment by foreign venture capital investors(IFVCI). These investment alternatives have created clear avenues for FDI many conditions and restrictions which continue to hamper, now permitted in most sectors of the Indian economy without the need to obtain prior governmental authorization (automatic route). FDI, within the meaning of the regulations, means the purchase by a person outside of India of newly issued equity shares, preference shares, fully convertible or partly convertible bonds, American Depository Receipts or Global Depository Receipts. FDI, however, even under the automatic route, where no governmental authorization is required, is subject to a number of important conditions. Sectoral Prohibitions and Limitations, Pricing Requirements, Approval Criteria for Investment Not Qualifying Under the Automatic Route, Purchase of Shares from Third Parties. These conditions and restrictions stormed minds of FDI investor in different sectors and hampered LEFTR efforts during these days and need justifications. In my opinion to justify DFI these conditions be modified and relaxed further so as the investor be find himself free of complicated legal bindings, to invest maximum savings under FDI and should take part for rapid growth in economy of India.

are: First Kalpana Rangari , Second Satish K Singh , Third RK Gupta