<p>
</p>
<p>No. It should create more jobs in India.</p>
<p>Personally, I don’t like it. It looks like most of the benefit is for America economically. More trade implies here more exports for America which just means more Net Factor Income from Abroad for America. More jobs? For them. They want us to open up the trade barriers so that they can export more. Capturing India’s market will definitely not be in accordance to the Trickle Down Effect as the money is not going to be put into the Indian economy right? Unless they set up base here, the income shall be counted as export income which shall not remain in the Indian economy.
The main focus is of course how to benefit the most from India’s growth. The rise in our Sensex can hardly be attributed to anything other than Foreign investment. Its all making our economy more volatile.</p>
<p>The only thing I like till now is that ISRO and DRDO are no longer blacklisted.</p>
<p>This visit is focussing more on economic relations/benefit rather than political problems.</p>
<p>Big words. There’s not much that America can export, that can’t be made for lesser cost in India. And what is cheaper in the US deserves to be imported, so that the Indian public don’t have to pay a higher price in the name of “local goods”.
Paying a higher price for goods in the name of jobs being created is equivalent to simply raising taxes, and giving that money to the poor. Restricting trade is detrimental to the economy.</p>
<p>
But do we have the capital? Which goods are you talking about? The foreign companies that have set base in India bring their own capital. It is only the cost of production that is lower here which enables them to produce and sell at a lower cost ultimately.
Sure. But it benefits their economy more than it does ours. Since we don’t have much capital, our goods are definitely going to be more expensive. Do you mean to say that by bringing in foreign exports we should nip the shoot to the root in the beginning itself? By encouraging exports to more than a certain extent we shall be curbing the growth of our own industry.</p>
<p>
</p>
<p>You’ve missed the point. The cost of production is lower here. So foreign companies set up their factories here, using their own capital. Its these factories that create jobs. Thats the point of foreign investment in the first place.</p>
<p>
</p>
<p>We aren’t out to ruin the US’s economy, but improve ours. And its entirely possible to structure trade in an efficient way such that it benefits both countries.</p>
<p>
</p>
<p>You assume that India should have a strong industry presence in everything. Its not possible to do this while being efficient at the same time. Prices will rise to extraordinarily high levels, and this will severely affect the Indian public. The upper-middle and upper class will be able to absorb the blow, but the lower-middle and lower class will bear the brunt of it. The rich will become poor, and the poor will become poorer.</p>
<p>1) Agree
2) Agree.
3) Like I said, “encouraging exports to more than a certain extent…”. I never said that foreign exports should be banned. You create the picture of India before 1991. In areas where India is still in the development phase, we must discourage them.</p>
<p>
</p>
<p>Okay, name said areas where cheaper foreign imports will be harmful.</p>
<p>A survey conducted by Federation of Indian Chambers of Commerce and Industry (FICCI) highlighted that majority of small and medium-sized manufacturers (SMEs) had suffered a serious erosion of their Indian market share over the past year, because of cheaper imported products. It is also estimated that imports were 10 to 70 percent cheaper than omparable Indian products.The bite was felt by companies in a** range of sectors**, including processed food, light engineering, building materials and heavy engineering, chemicals and textiles. Already, Indian manufacturers face serious competitive disadvantages in comparison with developed countries, including poor infrastructure and rigid labour laws that perversely discourage companies from growing and instead promote inefficient fragmentation. Consequently, this has resulted in lower production costs and hence lower prices against which Indian firms are unable to compete.</p>
<p>An example of where the Govt has already discouraged foreign exports to protect their own industries is the domestic Polypropylene(PP) industries. Reliance Industries supported by Haldia Petrochemical Ltd., two of our domestics appealed to the Govt to restrict PP imported from Oman, Singapore, Saudi Arabia.As a result of thisduty, the companies from these countries selling the product cheap in India will be discouraged.</p>
<p>Coming onto the bad points of Foreign Inverstment-</p>
<p>There has been little absorption of net foreign savings. Thus, the capital inflows which were in excess of the current account deficit have in an accounting sense become part of the foreign exchange reserves of the central bank and ‘re-exported’ overseas.” Nevertheless the Indian economy is compelled to accept these foreign inflows and drain out returns on them simply by virtue of having opened itself to capital inflows; their relation to the Indian economy is purely parasitic.
However, the good point is that these fiscal inflows have to a large extent fuelled the boom in spending by the middle/elite classes resulting in more money in the market which is a very good thing!</p>
<p>And here’s why I think the foregin investment is bad for our economy wrt Sensex-</p>
<p>As the speculative boom proceeds, foreign investors may decide at some point that assets are now overpriced.They would pull out till prices collapse to an attractive level. India’s share market has seen several steep falls lately.Those with current account deficits [like India, which bdw has a huge CAD] are vulnerable to a sudden outflow of capital if global investors become more risk averse.</p>
<p>It is important to note here that foreign trade has not boosted demand in the Indian economy: Net exports (exports minus imports) is a negative figure.** In other words, the market India losses because of imports is larger than what it gains by way of exports.**</p>
<p>Also, (i) foreign capital has not gone into investment, and (ii) under ‘globalisation’ India’s foreign trade has actually wound up depleting its markets and depressing demand. </p>
<p>The debate about the good and bad points could of course go on all day. You chose to focus on the good points and I just wanted to make you aware of the bad ones. And I think I broadened out from just america to foreign investment as a whole in these last two posts.</p>
<p>[YouTube</a> - Brown University Review](<a href=“Brown University Review - YouTube”>Brown University Review - YouTube)</p>
<p>“How are the ladies?”</p>
<p>The ladies…are…ladylike. rofl! :D</p>
<p>Oh hey everyone, only just found out TiT 19 was deleted. Anyone know why?
Anyhow I’m glad the random Indian batcheat can continue here :)</p>
<p>“But I hesitate. What confounds me is that fact that many students accepted to ivies and the like, have written their essays on very idiosyncratic topics. I know a girl who wrote on how she loves stuffed toys and went to Harvard. And another girl who wrote on “shower curtains” and how she’s afraid of them and got into HYP. I don’t know. I’ve read my friends’ essays who applied last year, and interestingly, the ones who wrote on idiosyncratic topics, got accepted, while others who wrote on more meaningful and revealing topics faced a flat-out rejection. Maybe it’s just coincidence. What are you guys writing your essays on? Meaningful stuff or interesting quirky stuff?”</p>
<p>-Maybe they made it sound like a pity essay?</p>
<p>Things US can export are arms, pesticides which are banned here and genetically modified seeds which destroy indigenous crops and makes farmers permanently dependent on mega corporations for seeds.</p>
<p>“-Maybe they made it sound like a pity essay?”</p>
<p>Are you referring to the quirky essays? And do pity essays really work? :S</p>
<p>Nooo, I meant maybe the ones who write about “meaningful and revealing topics.”</p>
<p>And no, pity essays don’t work. There’s a difference between a moving essay and flat-out-asking-for pity essays.</p>
<p>A friend’s brother that got into Harvard a couple years ago through EA that I know wrote some type of a pity essay. It was something like “look at all hard times I’ve gone through.”</p>
<p>I’m positive his academics were pretty stellar though.</p>
<p>" Depending on how he writes it, the essay does not have to evoke feelings of pity. Moreover, adcoms encourage applicants to write about formative moments in their lives, and each year thousands of applicants who write such essays (like me) are accepted. Whether these formative moments are happy, sad, extraordinary, or mundane is irrelevant."</p>
<p>-This is the advice of someone from CC who goes to Harvard who wrote one of those “pity essays.”</p>
<p>Why cant i find tit 19?</p>
<p>It got deleted.</p>
<p>It is back up again :). It is called TiT XIX. Sorry guys, I broke the tradition. Let us use TiT#18 ver2 for trash talk.</p>
<p>PS: I am in your rear view mirror now.</p>