Foreign Direct Investment (FDI) is an investment done by any individual or a company in another country for the purpose of business or production. It is different than the portfolio investment, where investment in securities like stocks and bonds of another country are made. In India, FDI has become a serious matter of discussion, since it was proposed that the government will allow more FDI in the country. Several states of India seek and attract FDI. Haryana is one such state where in spite of entrance of FDI, its benefits have not trickled down to the entire regions of the state.
FDI has several benefits which helps to build a stronger economy. It improves forex position, generate employment and increase production. It also helps in increasing exports and tax revenues. But it is also criticised, as small enterprises and domestic companies fear that they may not be able to compete with these large scale companies and they may lose their ownership. In Haryana, as per sources, from 2005 2011, investment of Rs. 2,887.65 crore was made through FDI in the state, which generated approximately 19,626 jobs. However, this growth still pales in front of the actual growth needed by the state.
The Government of Haryana has also opened a Foreign Investment and NRI Cell which tackle the issues regarding the investments made by the non-resident Indians (NRIs) in haryana. In spite of this facility, the adequate assistance provided by the administration still falls short in attracting and pulling in more FDI. Though the availability of abundant skilled manpower and good residential and corporate estates attract foreign investment in the state, more effort is required to get the optimum benefits out of FDI, which should be allowed and propagated with the object of creating more jobs and assets.
It is evident from the past scenario that FDI in Haryana has proved beneficial for the economy of the state in a restricted way, considering the kind of attraction the state holds for the investors. More FDI in Haryana can surely bring better opportunities towards the growth and development, besides bringing more job opportunities for the people. Higher FDI is required in the state as it will generate skilled as well as white-collar jobs for the people. It will also lead to development in infrastructure and in other sectors as well. Haryana will prosper in future and an all new Haryana will emerge with ample growth in the state. Naya Haryana is a dream which will be fulfilled with Nayi Soch. Better administration and improved methodologies are required to be followed which will attract more FDI. Infrastructural and basic development is the need of the hour, as they can also bring and draw more companies and individuals to invest in the state. It is also important to retain the foreign investors, which can be only be done if there are adequate facilities to attract more FDI. Every individual has to work hard and make cumulative efforts for the achievement of the vision of Naya Haryana.