The Swadeshi  Misconception

The misconception the FDI will lower the economy of the country and bad for business may be more hyped than you thought.

The rise of the Swadeshi  life style and many more attributes have created a smoke screen in the minds of the common man, that  the companies which come to the country are all about the profit of their own and bring no value to ours .

Well there’s a little more technicality to it that meets the eye. Which leads to this misconception.

When you talk about a big firm or company we  tend to compare their turnover before entering  our market and after which seems to us that they are making  a lot of profit from our country.

But that not the case entirely if we look at it in an economic sense we can see that  the firm if  establishes in our country. Our contraries benefits too.

This is due to the twist of the GDP.

GDP is the market  value of all the goods and services produced within a given time period , say a financial year by factor of production located within the territory of that country.

So according to the statement if a foreign company sets up its branch in the India than the products produced by the set up will be added to Indies GDP. On the other hand the plant will also provide employment  and increase the standard of living.

It’s a give and take relation for a developing country like ours. It  does not mean that it should  be left without scrutiny but, more than necessary is not required.

The GDP of a country is a measure of the economical status of a  country. A very important figure.

To better understand lets’ take an e.g. :- THE HERO HONDA set up in India.

The  number of bikes produced by the set up, the no of employees it gives employment to ,  are all added to India’s GDP and GNP the only thing that adds to Nepal GDP id the profit of the set up.

Thus not a total loss for the India market, which for the saying is not all that bad.

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