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Context: The record level of FDI inflows in India for the year 2020-21 does not match the development priorities of the government.
Why FDI inflows accounted for the year 2020-21 will not benefit India’s development priorities?
First, the nature of the bulk of the investments involves just a mere transfer of shares without creating productive assets in the country. This is contrary to the expectation that FDI can contribute to the revival of the economy
Second, according to RBI, though FDI inflows were stronger in 2020-21, their distribution was highly skewed.
Third, the bulk of the investments in Reliance Group companies will not facilitate sharing of managerial experience and technical expertise. Because investors’ share is pegged at 9.9%. For instance, Facebook’s shareholding in Jio Platform was pegged at 9.9%.
Finally, there are other issues related to FDI inflows in India for the year 2020-21. For example,
By: Shubham Tiwari ProfileResourcesReport error
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