how to attract foreign investment


If any country is interested in attracting foreign investment, it should do the following.

1. to clearly identify the areas in which foreign investment is required

2. decide the incentives that will be available for investing in the country

3. indicate the infrastructure available

4. formulate the advantages in investing in the country

5. work out the approximate cost of production of goods and services in the country

6. estimate the size of the market

7. write the success stories of 2-3 foreign investors in the country in the same area or similar areas

Pamphlets should be printed including the above points and sent to the countries’ Embassies/High Commissions abroad. The Embassies/High Commissions should send these pamphlets with a covering letter to the concerned companies. For example if investment is required in telecom sector, pamphlets should be sent to all (big or small) telecom companies in the country of their accreditation.

The pamphlets should also be sent to general investing companies- venture capital companies, institutional investors, fund managers etc.

The responses from them should be complied and sent to concerned department in the home country. Thereafter only the department officers/minister should visit the foreign country to meet the potential investors who should be invited to visit home country for further discussions, to visit to places etc.

This way it will be easy to attract foreign investment.

Rate of exchange between dollar and rupee


The Finance Minister is reported to have said that the correct rate of exchange between US$ and Indian Rupee is US$1= Rs.59 or Rs.60. This does not appear to be correct.

The wages for an hour of an unskilled worker on an average is about US$ 8/- in United States.In India it is about Rs.50/’ In this case US$ 8= Rs.50 or 1 dollar is equal to about Rs. 6.25. A cup of coffee in Food Courts on average costs about US$1.00/- In similar establishments in India, it is about Rs.30/- In this case 1 US dollar is equal to Rs.30/- Average price of 1 litre of milk in US is about 1 dollar. In India, it is about Rs.30. In this case also 1 dollar is equal to only Rs.30/- Of course in manuufactured goods, 1 dollar may be equal to Rs.40 or more. Taking all the products and services (GDP) in India, IMF/World Bsnk etc.estimated in 2012,India’s GDP to be around 5 trillion dollar by Purchasing Power Parity method and nearly 2 trillion dollars by rate of exchange method The rate of exchange in 2012 wad about Rs.50 per dollar. This shows that the real parity between dollar and rupee in 2012 should have been only Rs.20/dollar. in 2013 it could be about Rs.30/-.

Indian Rupee is not the most value lost currency


There seems to be a widespread impression that Indian Rupee is the one currency that lost its value. Many other currencies have depreciated more steeply than Indian Rupee between September 1995 and September 2013.

The following are the currencies which depreciated more than Indian Rupee against US Dollar:

Brazilian Real 151%
Columbian Peso 103%
Indian Rupee 100%
Indonesian Rupiah 384%
Nepalese Rupee 105%
Pakistani Rupee 238%
South African Rand 181%
Sri Lankan Rupee 160%

Author: Singharan Govindan