How FDI in Defence will Lead India towards slavery, what is the solution - ML12

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• published: 16 Jun 2014
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कृपया अधिक चर्चा के लिए fb.com/groups/rrgindia/ पर जाकर रजिस्टर करें और पोस्ट करें ============================ For more discussion, please come on http://www.fb.com/groups/rrgindia/ In FDI, there is commitment to repay dollars..This commitment has been fatal in past, and can be fatal in times to come. The commitment becomes fatal when Govt simply doenst have dollars to repay. eg Today, FDI is $360 billion = Rs 360 * 6000 crore = about Rs 21 lakh crores, and debt is $300 billion = Rs 300 * 6000 crore = Rs 18 lakh crores, whole dollars GoI has are only $300 billion = Rs 18 lakh crores. So if foreign investors decide to sell away their capital, and ask for redemption, Govt may not have enough dollars to repay. This will create serious dollar crunch , fall of rupee, rise of all imported goods inclduing petrol and can collapse economy. Debt crisis is when the borrower's income is below the interest, forget principal repayments. And repatriation crisis is when (export - import + NRI transfers) are below even profit repatriation, forget capital repatriation. . To explain, I will give a summary of FII, FDI, trade, forex debt etc. (1) India's forex debt is $425 billion of which $90 billion is to be paid in next 12 months. In addition, (2) India has FDI + FII till date is about $360 billion. The capital has appreciated and so it may be worth $400 billion or more. But selling all assets in short time can cause fall in property value, as well as fall in rupee, and so that can bring down the net dollar value to as low as $200 billion. So capital's potential dollar burden is $200 billion to $400 billion (3) Plus Indian PSU banks have insured forex debt of Indian private companies, which may be $50 billion. (4) And trade deficit = imports - exports = around $130 billion per year !! (5) Forex reserves are $300 billion Now say no new loans are taken and no new FDI comes (Best case scenario of no increasing forex liabilities. FDI is also a liability and a debt under present terms of FDI policy since we have to repay in dollars and forex anytime the foreign investor wants to repatriate), Then within one year, we will have only $300 - $130 - $ 90 = $80 billion left. And that will become zero in next 4 months of debt repayments and trade deficit !! and there won’t be a dollar left to pay for imports, interest, principal, repatriation of profits and repatriation of capital !!! In Other Words, we already have debt-cum-repatriation crisis at hand. Forex reserves - 300 billion USD (including Gold)-http://rbidocs.rbi.org.in/rdocs/Wss/PDFs/02T_WSS060614FL.pdf http://www.tradingeconomics.com/india/total-reserves-includes-gold-us-dollar-wb-data.html External Debt - 426 billion USDhttp://finmin.nic.in/the_ministry/dept_eco_affairs/economic_div/External_Debt_QDEC2013.pdf FDI (2000 to 2014) - 323 billion USDhttp://dipp.nic.in/English/Publications/FDI_Statistics/2014/india_FDI_March2014.pdf Solution - We (many citizens) should ask our MPs via email, sms etc. to bring policies to increase our forex income and improve our skills. Please see chapter 20,26, 74, www.3linelaw.wordpress.com andwww.smstoneta.com for more details. Non-solution - Keeping mum for 5 years and not interacting with our public servants and not telling them our suggestions. Because if we do not do anything, we are going into a debt trap, having to pay more and more, having to give away our mineral and other resources, becoming empty from inside. We should not increase our borrowing, we should increase our income. ========================= Please come on www.fb.com/groups/rrgindia or message your contact phone/skype so that one of us can contact us. We do not have time to respond on chat https://www.facebook.com/notes/right-to-recall-against-corruption/0269-which-are-the-best-solutions-at-present-to-improve-defence-why-making-fdi-i/674053689310742