Foreign Direct Investment in India Or Foreign-economic Development Investment by India

Posted: January 5, 2012 in Uncategorized

 Sri Nivas Kidambi, Senior Research Associate in RRF (REGIONAL RESOURCE FORUM)

A bizarre Saga of  bankrupt western economies and their  multinational business houses incredulous laughable economic  plan to Develop Indian Retail jobs at the expense of their economics with non existing FDI from their phony FII (Foreign Institutional Investors) 
Operation Mountbatten – Reoccupation of Whole of India in 60 years for 51% of Indian land Partition in 1947.  

INTRODUCTION
An American economic tumor of unprecedented callous greed that made US economic collapse of 2008  followed by that tumor becoming European Economic Cancer crippling the entire western Europe by 2011 was mediated by the bankrupting of UAE (Dubai) known as Dubai Flu in 2009. Till now neither Europe nor USA was able to come out of the effects of such crisis with much of these economies entering in to recession.  Laying off jobs, cutting wages, reducing government liabilities and entering in to protectionist era of jobs & goods and every step needed to squeeze extra dollar/euro in to their economies. There is no sight of getting out of  impending economic cripple and crisis with US Europe directly resorting to colonial era solutions entering in to war with Libya –with noble objectives of democracy, protecting freedom-and fleecing the countries $ 2 trillion savings which prevented the inevitable collapse of these western countries for last six months.  As of the date of this writing this article still Europe and US were debating as to what to do to save their skins and to protect their citizens life standards which if not done in time will lead to a political radicalization of the entire west inevitably bringing the Bolshevik times of yester century in Russia in to the reality among western nations.   
Little unknown to many UAE (Dubai is what we know but is a conglomerate of either 12 or 14 sheikdoms of which Ras-al-Khima, Abudabi Dubai, Sharjah are the primary components Indian know) successfully came out of the impossible recession in two years. When this Dubai Experiment started many western countries never believed that it will work. But the eventual success of it in two years made the western nations to line up and queue up for the same solution. With the solution details worked out meticulously their spin doctors political pundits and so called domestic patriots nationalists and development gurus started to unfold the script of such solution since mid of 2011, in India.
We explore the whole drama as played on now starting from Dubai experiment till now
DUBAI FLU
Following  the collapse of US Real Estate Bubble the Dubai real estate market which absorbed a portion of the toxic investment collapsed during 2009. The total loss they suffered was close to $ 2 trillion. Most of the black money of US and Europe was invested in the Dubai Free Trade Zone. The sheikdoms were shaken as their lavish economic style read as Dubai Economic Miracle (DEM) or Islamic Banking Miracle (IBM), build on world nations black money, drug laundered money, gold and diamond smuggling profits and illegal international arms trade surplus will no longer remain and Dubai will be forced in to third world Arab country status. They at one time during 2009 does not even have enough to pay for the EMI of the prestigious al Burz construction. 
How DEM or IBM occurred
Now this DEM or IBM happened in UAE with out having a single university, single engineering college, single world class economists or not a single MBA college or such profound institutions like IIM or Harvard Schools. Also it happened when the IQ of the native workers labor and scientists are close to the size of pencil eraser hole. Also this miracle occurred un explained when to even screw a nut or bolt, plug a bulb or cut a piece of wood to build roads or build hospitals labor has to go from South Asia.  The latest business school or engineering college build there is by BITS, India operational from 2010.
Despite all this Dubai always never had problem in attracting foreign institutional investment (FII) or foreign direct investment (FDI) of any proportion even though they have a bizarre business rule that the majority stake should be of the native citizen of these UAE and the foreigner who brings the investment is only a partner as long as the UAE citizen wants. Still best of the international fund managers, banks, investment companies poured billions in to UAE to create a dessert heaven of unprecedented proportions for third world black money.  All UAE rules were accepted and all this investment was done under the name of cultural sensitivity to native culture. But the same investment companies when it comes to the question of India and investing in India, wants the whole of the ownership with 100% profit repartition rights back in to their economies.  I guess India/Indians does not deserve cultural sensitivity.
Piggy Back on fame name & expertise
With the component of compulsory UAE citizen owner in corporate partnership/growth, many of local citizens became partners/owners of prestigious companies. This mere association was used to claim that UAE citizens were world class builders, investment bankers, financial wizards of top class to gain business contracts with many developing countries often with the black money routed in to UAE especially in to DUBAI via  many money laundering islands countries like Mauritius, British Virgin Islands or Cayman Islands, with disastrous consequences to many developing nations.  In many Islamic countries or other Asian African non-aligned countries where people never liked western ideologies or support of western governments, the UAE citizenship ownership was sold as an Islamic Face of Development thus many western economic intelligence agencies made a back door entry in to third world. Also it is to be noted that most of the top wanted terrorist out fits of concern  either have a UAE office or had a residence there. Our most wanted man Dawood Ibrahim still keeps his office there. ISI actively has its operational offices and bases in Dubai.
But this DEM or IBM came with a catch. From consultants to bankers, to insurance agents to retail out fits all came from western countries only with 100% FDI. Many prestigious banking outfits kept investment front offices or mutual fund offices of different names and aided for decades to route black money from investment safe heaven in to Dubai. Huge profits generated with the money are shared between local Citizens and investors. But who will labor and toil in UAE ? Asian labor in general or Indian Pakistani Bangladeshi Sri Lankan labor in particular. When the heaven is created on earth in UAE for Indians and Asians it became a big open air jail. Upon arrival their passports are seized by the companies that gave employment. Most of daily wage labor live in there in ghetto like conditions. Still we tolerate all this because those conditions are better than the worst exploitation or joblessness that we faced in Free India or Asia.
All this was possible because UAE was and is partner in fighting elusive international Islamic terrorism (like Pakistan) allowed the western intelligence agencies especially CIA and Israeli intelligence to operate free on their emirates under the pretext of checking the Iranian Aggression. Especially Ras al Khima is the closest listening interception out post of CIA and Israeli intelligence to monitor Iranian communications. Ras al Khima with a total population of close to 3.5 lakhs (you read correctly three and half lakhs only-just google it)  created an international trade center asking many European US and ASIAN giants to invest in there and guess what Indians are the first to run there to invest. Though UAE is a muslim and hard core sunni arab country they were picked to help in fighting terrorism in Afghanistan, Iran, Pakistan and even in India. Here the Shia and Sunny divide between Iranians and arabs was exploited in entering theses principalities by western governments.
Dawn of Crisis 2009
With the collapse of US markets and European counter parts in 2008 Dubai’s economy faced almost extinction.  No country had money to bail out UAE. Most of the Arab nations caught in the US collapse were looking to save their economies. IMF WORLD BANK are also helpless.  The construction in real estate industry came to standstill in UAE with impending layoffs shrinkage of wages, foreclosures. It was feared that India may be pulled in to this spiral because of the close business ties with Dubai. There was talk of loss of remittances to India by NRI Indians thus affecting multiplier impact such remittances. There was talk of such scenarios on broad economic Indian spectrum in those days. Requests were made to government of India to provide alternate employments to those who may come to India after their layoff, some talking about taking extreme step of providing financial incentives till the Dubai Flu goes away.
Unimaginable loss of $ 2 trillion Unprecedented Experiment and Incredible Solution
At this crucial cross roads Dubai choose to act differently. With the extensive connections in financial and intelligence world the Dubai rulers hired prestigious British consultants, N M Rothschild & Brothers (NMR) as knowledge experts  to save UAE and Dubai.  NMR agreed to help for a fees of whopping $ 10 billion which was liberally agreed by UAE rulers with a condition that NMR should make that money for them selves which makes the economic bail out of UAE to shoot by additional $ 10 billion ($ 2.01 trillion).  The solution proposed by NMR was to suck money out of India in to Dubai to bail Dubai economy out, without Indians knowing it.  How? Indians in financial matters were considered by many in world of  high finance with less IQ than UAE citizens. The western world gasped with the proposed solution of NMR.  UAE rulers swooned but believed in the intelligence of NMR.
How could NMR do this ?
NMR could correctly calculate long before around in 1999 that the western economies collapse. They have always a rule ‘give me the control of your currency we do not care who rules your country’. NMR extensively embedded with British Intelligence for more than two hundred years since Napoleonic wars in financing British regular and clandestine jobs. (Please google NMR). They created a thing called Monitor Group immediately with the proposal of PV Narasimha Rao government limited liberalization. This monitor group was embedded with British foreign intelligence and even Rahul worked for some time for this group. A myth was created that this group was experts in liberalization and sold to Government of India.
Then the NMR created a economic chair in the name of then and current Prime Minister Dr Man Mohan Singh (MMS) in England in Oxford (if I am not wrong-it could be in London School of Economics of Cambridge University also). So al soon as the first UPA came the entire GOVERNMENT OF INDIA surrendered to Monitor Group asking them to be consultants in the liberalization of Banking and Insurance sector. With this Monitor group and thus NMR gained access in to the extant of bottom less funds and economic miracle India achieved and floating in Indian Economy. Between 2004 and 2008 NMR and Monitor Group carefully nurtured segment by segment in Indian economy by developing friends or using their residence consultants like Nira Raadia and her Vaishnavi Consultants.
The Evolution of Solution – Dubai Mauritius London Cayman Islands Singapore EMMAR PROPERTIES
As part of the plan NMR set up Emmar Properties in UAE. Emmar Properties was promoted in UAE or Dubai. Emmar is an acronym of Emma Rothschild one of the wife of leading scions of the Rothschild brothers Emmanuel Rothschild or Emmanuel Rothschild him self .   This company was promoted as the best construction company in world having done lot of work in US Latin America etc. (The native owners piggy backing on international partners).   Their methodology was simple bid for retails real estate contracts in India buy them dirt cheap from government and sell them to Indians (all classes) at whopping prices thus making killing profits and transferring them to Dubai. The investment for these real estate ventures came from Indian businessman with Dubai business connections being absorbed by Emmar in Dubai and money for the initial investment came via laundered money transferred from Mauritius or Cayman islands. 
FREE TRADE-Indian black money is Dubai Singapore White money and Indian FDI
Free money earned in corruption laundered into  investment heavens by sucking the blood of poor Indians, became free money for investment in money laundering safe heavens like Mauritius. This was transferred into UAE banks and it suddenly became  white money and this was shown as their portion of investment in to India as FDI.  This was shown as FDI portion of Dollar Investment until they obtained lines of credit from local Indian banks like SBI. Then only local money raised was used for native Indian funds in the projects. If the fraud is caught the real owners of Emmar or their consultants were never brought to justice. If the Indian counter parts will face jail Emmar never need to bother and justify that these Indian businessmen cheated both Indian brothers and Indian government thus they deserve that punishment. (Sounds similar and familiar-when Jalianwala bagh massacre happened the English officers were rewarded by English parliament and local Indian police were suspended).
The rule in Dubai is they never ask the source of funds invested in Dubai banks because they follow No Ask No Say policy.
ROLL IN TO INDIA AND MODUS OPERANDI
Many front companies were promoted as subsidiaries of Dubai companies in Singapore, South Korea Malaysia to give international flair and authenticity as international business houses. The modus of operation was simple.
First Over invoice every item by thousands of times citing international standards, get the bills passed. Charge extraordinary prices for Accounting Management consultant from local partners. Then subcontract the work to local Indian contractors for the actual price. 
Emmar in months Embed in to every state government under infrastructure development. For example Andhra Pradesh Industrial Infrastructure Development corporation (APIIC) entered in to joint venture with Emmar Properties in developing golf courses, villas, high rise complexes, stadiums,  recreation entertainment centers etc in which now the CAG Vigilence and CBI are probing a multi billion dollar fraud deals done from 2004 until 2011. The extent was being still determined. All Indian office bearers are Dubai based businessmen.  The deal simple – first APIIC and EMMAR agreed to become 50% partners. Then within months the percentage of owner ship of APIIC was reduced to 26% and then to insignificant 6% by transferring APIIC share to EMMAR Indian front companies.
The accused Indians in this EMMAR fraud case in AP are requesting Indian courts they need special privileges as they had an exalted life styles and wanted bail to go on Pilgrimages. This EMMAR had such similar deals with almost every state government in India. For example if the Andhra Pradesh Fraud in land grab is close to $ 50 billion dollars (Rs 2.5 lakh crores) then with similar proportion with leading state governments, the total fraud alone will be ($ 50 billion x 20 state governments) $ 1 trillion dollars. This  was sucked out into Dubai or in near future will be sucked out of Indian economy. This is the 50% of the Dubai Bail Out.  In case of Andhra Pradesh because of the political power struggle one political party requested High Court to look in to another party connection with EMMAR and thus the high court ordered a CBI probe. Even here Emmar used top notch lawyers in India to fight to dismiss the case. Who will probe these in other states of India where there is no such political power struggle ?
Also EMMAR are consultants in executing the Common Wealth Games which was close to the tune of Rs 1.25 lakh crores ($ 24 billion) fraud (is what is revealed) in which again the ever forgetful Kalmadi is in Tihar but the money reached Dubai and CBI is going behind Australian and Swiss firms to find out truth in over invoicing of gym equipment supplied in CWG. The quality of the work done in Delhi was so great that the foot over bridge built by Emmar was collapsed just a week before inauguration of CWG and it was re built in record time by Indian Army. The bill for this CWG was twice the combined total of all CWGS ever conducted in the entire history of CWG. The probe is still on by CBI. 
NMR  also are consultants for the entire 2 G spectrum companies that were facing CBI probe in an Rs 1.75 lakh crore scam $ 35 billion dollars (no one knows what is the extent of this). All the companies that were implicated were found having offices in Dubai and few are identified directly with foreign intelligence agencies. For almost all these companies the NMR are consultants. In India their counter part Nira Radia a British citizen was questioned but not charged. She wound up her company and now want to live in peace. 
Apart from the above Emmar/NMR also are consultants for many companies coming from Ras-al-Khima in to India to build Sea Ports, Air Ports, Ware Houses under PPP (Public Private Partnership). Surprisingly in these Airports, Seaports neither State or Central Governments have any authority or say or cannot enforce any local laws. (similar to East India Company forts). One such huge port construction is under CBI scanner in east coast of India called VANPIC in Nizampatnam. Again here too local Indian businessman with Dubai partners want to build an exclusive sea port, air port exactly between Eastern Command of Visakhapatnam and South East Command in Chennai with no government of India supervision. Here it is interesting that Ras Al Khima is bidding this project. The purpose is to export of minerals available in the area nearby.
When such model was proposed to rebuild in USA the New York New Jersey port during 2005-08 severe economic crisis the US public blocked the deal as a threat for national security.
 It is in these numerous deals by NMR/Emmar and their front companies the other 50% of the Dubai bail out was guaranteed.
EVOLUTION OF Western FDI in Retail 2008 – 2010.
With incredible amusement the western world watched the dumb Indian states, union government  (we are multi lingual states so we do not know what is happening in our next neighboring state but knows who is the second divorced wife of any US or UK pop singers) succumbing silently one after the other to NMR and Dubai Emmar for one single catch phrase FDI is development and will create (temporary) jobs.  What still bemused western governments was when frauds were reported (if not reported no one bothers) we Indians still dodged them to the extent that after a point the investigation is only for statistics collection purpose for CBI and for arresting local Indians.  West watched with unprecedented interest in both Indian Central and state Governments attitude that never want to admit responsibility for the actions committed by Emmar or the opposition’s attitude that  never wants to take responsibility and fight for United Indian Rights.  What giggled many westerner governments was the lack of initial awareness or economic intelligence reports country wise by Indian Intelligence agencies which are very busy on spying on opposition leaders life styles. Nor Indian Intelligence agencies,  economists  had a clue about Dubai Flue and the fact that Dubai was bankrupt. Nor none were able to explain including the great economists (on both sides of government and opposition) including financial wizard Prime Minister how from such bankrupt tiny island so many of such companies can come and build un precedent structures, projects ranging from ship buildings to space ports to roads to game cities worth exactly $ 2.01 trillion in India in a span of 2 years. Almost every western investor fainted when Emmar Associates of India was given the best management consultant award by Indian finance ministry. It was then decided by all western governments to cash on the mind boggling ignorance or purposeful connivance of Indian governments and opposition parties. First all western governments opened trade offices in India. Every body said what Indians wanted to listen India is a going to be a great power and Pakistan is bad and they back India on her way to become a UN security council member and they supply uranium to India. Entire government and opposition combine became the court of Mahapadmananda and Dhanananda during the time of Alexander Invasion.
FDI in RATAIL
Now it became very clear that the miracle of Emmar can be duplicated on a large scale for a proper bail out of entire western world. By the time the decision was made to enter India for economic recovery, the European markets started collapsing. Iceland crumbled and restructured, Ireland, Greece started crumbling down in late 2010 to 2011 and Italy showed signs of bankruptcy by mid of 2011. Portugal, Spain look on the definite path of following Italy. The bail out figures were calculated. It was unprecedented $ 20 trillion dollars needed right away by the end of 2012 or a promise that additional $ 30 trillion will come in next 5 to 10 years.  This is the one third of the total financial collapse of world suffered due to American Collapse which was estimated at $ 150 trillion. US alone needs close to $ 15 trillion (this is the total debt of US close to 4 times her current GDP) Italy needs $ 2 trillion, Greece close to $ 1 trillion, Portugal another $ 1.5 trillion etc.
Patriot Act
An Indian is an Indian even though he migrates to any country and takes that country citizen ship. In times of need they will support their mother land, may not be physically but at least financially. Say in terms of disasters natural calamities like tsunamis cyclones many NRIs share what they can do with their fellow brothers in India. Rich NRIs share millions of dollars but poor share few of their dollars and pool them and send the same to India. If Indians are in political positions, like in Canada,  they will influence their governments to help India via their government programs to help Indians. Patriotism is not a virtue of Indians alone. It is a virtue of any first generation migrants or their first generation children. UPA chairperson is no exception for this. She and immediate family though live in India. They still travel and do business on both Indian and Italian passports. This was another amusement for western intelligence agencies about Indian administration. It became imperative for west to tap in to this sentimental virtue. So the final deal was set during the UPA chairperson and her family visit to New York during her hospital/no hospital visit to USA. All details, methodology of a massive western bail out package starting first with Italy and then EU and  then about the whole of US was worked with implementation plans, backups. That is why it was reported in Indian media first that UPA chair person got cervical cancer which comes from HPV virus about which there is lot of controversy going on in USA Canada and Europe. But later this version was recanted as saying that they are on family visit and no one in India should disturb their right for tranquility of family privacy (even the freedom loving Americans would have fainted at this new freedom requirement).  Thus nothing was reported in Indian media and none asked enquired or bothered on what went on for whole month in US hospital which was under tight US intelligence security. Only US, Italian, EU businessmen and trusted administrators from Indian services were called.
How we can say this is what happened or will Happen ?
‘dhuma vahni nyaya’ The analogy of smoke to fire principle of deduction.  If there is a smoke there must be fire. Studying the quality texture density smell composition of smoke it could be determined as to whether it is toxic or not toxic and the source of primary composition of the fire can be predicted-either from wood, petrol, diesel, plastic explosives, C 4 Simtex, cloth etc. Patiently follow the pattern of events unfolding  and the actors responsible for such unfolding. That tells the signature of the parties part of the unfolding drama. The pattern followed by western nations in exploiting third world in the name of liberalization is a trade of 200 years old. Only the players and conceptual definitions change. We have a history of how they enter a country and does control every thing using friendly local rulers. By watching the pattern of events and the flow of money we can pick the signature of the parties involved in the game. After all is it not the top priority of study of Indian Intelligence agencies or Government paid analysts or so called strategic study experts ? Any way following the pattern and signature of an event one can say whose the signature was.
FORMULA 1 STEP 1 – EMMAR LOGIC –51% to 100 % FDI BRINGS 80 LAKHS JOBS
The first sales pitch given in Indian parliament by UPA during mid of 2011, that it was it is fantastic development tool and that FDI brings jobs 80 lakhs.  Who said it for UPA government, Goldman Sachs/Bank of America out look on Indian economy and Monitor group.  Later they back tracked and said that FDI will be only in cities with more than 10 lakhs population and later it will be expanded. There are 100 cities with more than 10 lakhs and the combined population is more than 100 million, more than the combined population of Canada, Australia, New Zealand and South Africa. Right in the first step 4 western countries gets the long term bail out package because of the size of consumer base.
Now to create 20000 jobs we need $ 1 billion investment. To create 1 lakh jobs $ 5 billion dollars are needed. To create 80 lakh jobs we need $ 400 billion dollars or a whopping $ 0.5 trillion dollars are needed.  This is in first phase of the FDI in retail. ( some may argue that in Indian context that much money is not needed, but we are taking international established standards). Who brings this money in to India ? Western FIIs (foreign institutional investors- banks, mutual funds, insurance companies, private investors of equity funds or retail giants like wal mart (multi brand retail) or  nike (single brand retail) etc
Though we are known to not to want to ask dumb/intelligent questions on anything including some like FDI increases Indian urbanization or any question on negative effects of such investment of FDI. Here even affected parties traders any way did not ask such questions but opposed the move. Main opposition which welcomed FDI during their tenure sensing ire of traders went along with traders.  It was great to see the Indian intellectual dynamics reached such calculated predictable low, thanks to the degradation of education/ research in this country for last 20 years precisely since the beginning of liberalization and privatization. Coincident, fate, destiny, manifest destiny, Indian Incredible Idiocy (III) or all of the above, pick your multiple choice- it is only here on any answer you score will get a point.
Again as western intelligence agencies calculated correctly the III factor touching 100%, it was damn correct and NONE in India NONE ever even questioned from where the money needed for FDI is going to come from. It is assumed that retail giants like Wal Mart (for example) have surplus and as they love India and Indian curries will bring that money to make India a developed nation and thus this millennium super power in next 5 – 10 years. Or Wal mart or nike will borrow from their local banks to  invest in India.
The UPA gave assurance for all party consensus on multi brand retail but in single brand retail 100% retail is approved with consensus.  (following Dubai model 50% of bail out came right away).
HOW THE FDI INVESTMENT COMES ?
Where does Wal Mart gets the money ? From Savings or from borrowing with local banks. We do not think that wal mart or any group of companies have such net worth required readily available in cash.
 So it is assumed by many economists/financial wizards in India that the Wal Mart will borrow. From whom ? Local banks insurance companies or invest. ment partners. Who are they. Say in USA they are Bank of America Citi group, Axis Insurance Company or Gold Man Sachs or JP Morgan Stanley. In  UK they are Barclays bank, Lloyds Insurance, Standard Chartered etc.
FDI from Bankrupt banks – Incredulously Unbelievable
But two years before the entire US banking Industry collapsed requiring US government bail out and Bank of America is the first to avail a trillion dollar package. Second is Citi bank it was owned and restructured by the US government with a whopping amount of $ 230 billion dollars. Any known insurance company or even  Goldman sacs or JP Morgan all failed and wanted a US government bail out even to pay their employee salaries. There are complaints still investigated in those countries about the fraud, financial mismanagement by these banks after bail out also. Even today these companies are under the US government watch.
The story is same with UK banks insurance companies or investment brokerage firms. None have money. They are surviving on government bail out since past two years. So they cannot loan any thing to Wal mart. US and other western governments set priorities to create/save jobs in their economies. They are reducing H 1 quotas. Laying off foreign workers, fining heavily local companies that employs foreigners and kept a watch tightly on foreign investment by local companies as these economies need every dollar to save their economies. The European collapse aided and tightened this process in to much protectionist attitude. If any US company says that they want to invest in Indian Retail $ 400 billion dollars for creating Indian jobs because they love UPA, probably the executives will face jail for anti nationalistic attitude in US or Europe. But nothing happened and  none of this was ever asked in Parliament on the debate on FDIs by none. None of prestigious economists, IIMs became forgetfully clueless to the source of investment. Great parliamentarians became conveniently politically correct, joined either for FDI or anti FDI knowing fully that FDI will be any way passed as they cannot prevent it as it was ‘destined’.
Enters the N M Rothschild & Brothers (NMR)
With no money to invest or western governments wanting every single dollar to save their economies where does the money for FDI comes from? Incredibly N M Rothschild & Brothers NMR became consultants for all those who want to invest in Indian FDI retail and their partners in India. So starting from Reliance to Bharti mittal from their commodities to telecommunications it is NMR that was there consulting. So a bold large scale (10 times larger) plunder of Indian resources was planned on a standard format. Now what is in for NMR. If $ 2 trillion bail out of Dubai got them $ 10 billion commission of 5% then a 30 trillion bail out will get $ 150 billion bail out commission. Mr 5% as they are always.
HOW THE PROCESS GO  
Method 1 – Indians Pays for every thing domestically
According to known such acts by the same group of actors players in other third world countries the procedure followed is simple. First the investment in the retail per unit basis will be jacked up to hundreds of  times. So the cost of project is jacked up say from $ 1 million to $ 10 million. Who will say it is right ? The big 4 accounting firms hired for this purpose. Or Out side consultants like NMR. Who will listen ? Indians. Then these companies will show their 50% of their portion of investment as the stock they want to bring in to India. Now this stock is already sitting for last two years in Chinese ports as most of these single and multi brand retail outlets are manufacturing their goods in China since last 10 years. With the shrinking of US and western economies these goods are lying in Chinese ware houses or ports. The ratio of the cost of production of goods in China to sale of the same goods in US  or Europe or India is  usually will be in multiples of times of profit rather than percentages. A best Nike pair of shoes cost of production in China till reaches US ports is $ 4 dollars. After adding all other costs (admin, marketing, sales advertising it becomes $ 6) They are sold retail any where between $ 60 t0 $ 120 with profit margins ranging from 10 times (1000%) to 20 times (2000%). Wall mart will not bill inventory at Chinese port cost or CFI India. They bill that 33% less than Sales cost in India. Why international accounting standards ? So a whopping inventory jack up brings the 50% of wal mart investment in to India. Then the rest 50% is done by local partners or Government of India or Indian banks. Of this 20% is taken out straight as management fees and consultant fees or accounting fees. So with the rest of the 30% available money in India from Indian banks or public the retail stores are built and jobs are created. Cannot Indian do the same thing ? Yes but then that will be salvation to India not a bail out of west.
Method 2 Dubai Formula-Indian black money is used to reinvest in India
This is the Dubai formula. Many US and EU banks will set up investment houses brokerage firms and Private Equity Fund Managers who funnel money from laundering safe heavens like Cayman Islands, British Virgin Islands, Maritius etc in to Dubai, Singapore, Malaysia and off late in to Sri Lanka. From there they will bring these monies in to India as FII.
How these FII pack operate – Stock Market Manipulations or birth of Casino Economics
FIIs like to hunt like wolves pack. Prior to the advent of FIIs the target country reduces interest rates on savings to nothing. So people who want to make money on savings will be goaded to invest in to stock markets. If one remember the sale pitch of even NDA and UPA governments appealing citizens of India to invest in stock markets the gravity of situation is understood.  Then FII move in and select a particular segment of economy and inter trade in those stocks. The stock markets will zoom by 20% to 25 % from their original level. The western rating agencies will rate the selected companies as top notch or AAA plus. Within six months the common investor get got in to the vortex. This takes six months. Once this critical six month period is reached the FII will off load that segment of economic stocks. Precisely at the same time the rating agencies will reduce the AAA plus rating of the FII economic segment in to negative numbers. Stock markets tumble with ripple effect on other sectors of economies. Investors loose their savings. The FII will take the money out of India via dollars in one shot. With the large volume of dollar purchase local forex markets will tumble causing  Rupee getting weakened.  When all this settle down the stock markets loose 30% rupee looses 15%. At this juncture the FII will bring in their dollars to cash in on the 45% they can avail due to fall of stock markets and rupee devaluation. Rather than bringing $ 1000 dollars FDI they can bring only $ 550 to $ 1000 worth and target another sector of the economy. Indian Discount Sale, whole sale and retail.
Even our learned Finance Minister Pranab da also clearly stated very politely that the current crisis is created by FIIs. But this crisis is happening once in every six months and each time close to Rs 1.5 lakh crores or $ 30 billions are taken out of India. So for the past 10 years of NDA & UPA rule combined $ 300 billion dollars were sucked out of India. Remember the saying ‘give me the control of the money of any country, we care not who rules it’.
The actual Domestic Damage of FDI – Destruction of Agriculture, Small Medium industry & knowledge Base
Leaving the financial plunder and deception apart what is the real damage. I just will give you two examples. (I simplified many variables to easily understand)
First – Resource utilization to resource exports
Let us say there are 5  black smiths  in a village. 30 family members are depending on them, They make all iron requirements like knives, swords, kitchen appliances etc for the village requirements. And let us say they consume  5 tons of steel per year in the process.  And let us assume they pay input cost on iron or steel at Rs 6000 per ton steel or iron, Indian market rate. Based on the rate they set prices on their commodities they sell and make good profit and live as independent small enterprenuers. In most cases a particular community does this job and it becomes their community collective work. India has 7 lakh villages and among these villages at 5 tons per village 35 lakh tons of steel is consumed domestically at market prices. Our poor government PSU companies extract iron ore sell to these and with the profits support job creation in other sectors of economy.
Now comes say wal mart. They make knives, kitchen tools, appliances in China only, as their labor is cheap and Chinese government guarantees that. Also illegal iron ore mining in both UPA and NDA ruled states where lakhs of tons of iron ore was exported and being exported to China, saw the export of quality of iron ore at rates of Rs 1200 per ton.  30 times less in price for steel than what Indian black smith is getting in Indian open market. With this steel available in China wal mart will make any appliance at 10 times less price than Indian produces and still makes 20 times more profit than Indian seller. Again like 2 G scams only in Karnataka and Andhra Pradesh where the political rivalry brouggt court ordered CBI action or Lokayukta brought action in many states the process is going on royally even at the time of this article writing not only in iron ore but in diamonds, gems, biraties name anything. Who ever are caught cry that it is the conspiracy of opposition but failed to explain 100 tons of gold seized from their houses.  Also claim that they are innocent and god will protect them. For this they denoted multi crore crowns to gods themselves. With such pricing structure no one in India will buy from local trader. They loose their traditional community based business and will be forced to join the labor. The domestic demand for iron or steel will drop by 35 lakh tons. What do we do with surplus. It has to be exported. As iron ore to China. Domestic industry of steel will suffer. Western Credit rating agencies will down grade steel industry. Stocks tumble. Government want to disinvest. The PSUs will be sold to dirt cheap. England based companies or their Indian partners will buy them.
Second- Agriculture Self Sufficiency to Food Stamp Economics
In a country where majority of (still 70%) depend on agriculture as their lively hood. Majority of agricultural inputs are expensive for again various reasons the primary being corruption. Our staple food is wheat and rice. Now Farmer gets a price from either from government or trader and pulling their lively hoods.  The current prices are say Rs 60 per kilo wheat and Rs 80 per kilo good quality of rice.  
Enters wal mart. They say they benefit farmers. Will go to them and say grow cas crops that can grow only in tropical countries for western exports. We pay cash. What about Wheat or Rice.  No way as Wal mart gets them at dirt cheap from Canada or Thailand or Latin America. No Indian farmer can afford the pricing of wal mart in this segment. So from food sufficiency we descend in to food dependency.  Once wal mart controls our daily food, it could be manipulated from out side to create health or disease- a frightening scenario of low key biological food war fare.  That is why in the current boom of Bio technological studies in India, immunological studies and bio warfare dual genetic research is never taught.  With the farmer either shifting to cash crops for western consumption or selling his land as he cannot compete and survive producing wheat another huge unemployed labor is created paving the way for social unrest thus the second step of social engineering of ethno linguist struggles – a key element of Asymmetric Warfare.
We can extrapolate every Indian occupation from jewelers to potters to all other community based trades facing the inevitable destruction and the raw resources sucked by Chinese to  make India an ultimate consumer economy with no future. After all with this one major competitor in Asia from becoming a threat to China is eliminated.
Who benefits from FDI ?
Repartition of Profits
First of all with 51% share in FDI the companies can take the 100% profits out of India. Now if they invest $ 1 trillion in Indian economy their mark ups (standard) are at 33% and this is a whopping $ 330 billion will go back to western economies. This is if FDI allowed in 100 cities of India. If the entire India is opened up then this profit will  zoom to close to $ 1.5 trillion  (on 100 million if the profits are $ 330 billion then on 1 billion population it should be 10 times but we calculated here only 4 times) and if this is calculated for 20 years it will be $ 30 trillion needed for long term bail out of western economies. This money will flow in to western economies to save them directly. Every billion sucked out of India creates 20 000 jobs in West or China.
What do FDI in retail sell in India.
Let us consider Indian scenario. With more than 70% living in abject poverty their monthly requirements are 5 to 10 food items and 5 to 10 cloth items per year. They can afford atta, onions, garlic, mirchi, salt, mitti ka tel, and cooking oil, allo or matter. Dhotis, shirts, tovels, tub, mugs, paste.  They need not store this as they live on month to month basis and usually get loan from local trader and pay him once a month.  How many items will say wal mart carry. A whopping 15, 000 to 20, 000 items.  Sports guns to car parts, bullets to diapers, fishing hooks to any thing and every thing that west consumes. Does 70% of India needs it ? No.  Can 70% of Indian afford it ? No.
Then for whom this large inventory of goods. For 30% middle class and their billions of dollars purchasing power.  Where all these 15 000 items are manufactured. Either in China or in any of the western countries. Meaning manufacturing plants in these countries will wither recession as there is a demand in India for them. Every store opened in India secures the jobs of these goods manufacturers while eroding traditional community lively hood. Slowly steadily one after the other many such wal marts line up shredding the Indian economic pie that we built with out fathers savings and will be gracefully sucked in to West.
What Indian Law can do while all this happens ?
Protect the FDI FII foreign partners and their countries. It is not a remark or comment on judiciary but a practical observation based on case law.  The reason is simple. The justice system was created by British to protect British interests who were rulers then. They want to guard their officers, collectors, police chiefs, and viceroys from all wrong doings they committed against Indian subjects. That is why rape, plunder, theft, mass murders like Jalianwala bagh, hundreds of brutal killings, creating tensions among various sections of society and making them kill each other (divide and rule policy) all went unpunished till today. We cannot even demand apology from English Queen for Jalianwala bagh massacre. Worst the deliberate hindu muslim fight that was created by British viceroys and perfected in to holocaust by Mountbatten during partition was never brought to justice leave alone questioned. The British law is made to protect the British rulers their administrators and enforcers and the judiciary that used interpreted the law only guarded British interests. We never think the reason for this situation was British rule. We still think it is the partition that is the problem and for all the current problems go to the same British to solutions.
With the departure of the British post independence we never amended or modified any of these laws but allowed them to continue. So the legal frame work of this country will protect only rulers and their administrators whether they are British or Indian but never people of this country.
In very rare cases courageous judges tried to intervene and make sense which are sporadic sparks of courage but could not do much as the legal legislative frame work need to be changed democratically. But none till now no political party till now want to change this legal frame of reference as once this is done they will not rule. The status quo will keep them in power. That is why post independence still when our own people are killed by our own security forces, grab their lands, violate their rights, and worst protect political elements that perpetuate all these nothing can be done. Even in cases of open fraud, sedission, blatant cheating and after court interference also we all know what happened for even best of scams, Bofors, Coffin Gate, Fodder Scam, Stamp scam, Adarsh housing scam to name few. Decade after decade the tolerance limit for scams frauds looks like increasing in India.   
The law is so British oriented that when in 2011  a sunken ship was discovered off the coast of Mumbai belonging to East India company having 350 tons of gold, the British embassy claimed it as their own. Government of India is thinking to had over the same to them.
What is Indian Army doing ? No FDI ‘Direct Purchase’ of army reauirements only.
As usual watching. Stating their position that they defend only borders from external aggression. A 200 year old first generation doctrine of war still followed with amazing continuation only in India.  Internally what ever happened is the responsibility of political powers according to the above doctrine. But what they (Indian Army)  failed to recognize is today we are in the 7th generation information war fare era and many western countries are having special war ministries and departments dedicatedly designated for Asymmetric Warfare Doctrine among their MoDs. Is China coming and hacking all army computers a war or no war. We still do not know the answer. Can we do the hacking of Chinese computers. No way as this is not what army is for. Rather they will take a gun and fight at the border – if at all they can reach the border in the modern space war era.
Until end of 19th century county’s standing armies have to be defeated to get a hold on resources that each country possess. In the era of theory of Asymmetric Warfare, army of target country will be in borders and barracks only, but the country is robbed right under their noses with out  a single shot being fired.
Relegated to 24th  position in protocol from initial 2nd   the Indian Armed forces are seeing unprecedented destruction of ingenuity and indigenization process of domestic technology. Except a dozen organizations working despite fund cuts working in over drive to produce indigenous defense equipment, rest are all racing to fulfill western armaments orders from rifles to caskets, war ships to  long term maritime flights (surprisingly all with out advanced electronics which makes them mere expensive toys for poor Indians) for a national non existing emergency. The often cited reason was as indigenization takes time and we loose valuable time in war that is going to come every year (with whom non one knows as of now). While China was able to successfully clone the deadliest of nuclear war heads W 88 fitted on elusive trident missiles, which except US none has or while China was able to develop indigenous technology that can conceal the heat signature of the exhausts of their brand new stealth J 20 bombers, we are racing to fulfill defense orders of Israel USA Britain south Africa Austrian arms industries. And the latest buzz word is 100% investment is allowed by Indian private sector in to Defense Research.  But the story  always is that it is Indian private sector first and then the same private sector sold every thing to competent bidder from Western countries on the instructions of consultants NMR. For example the Rajasthan’s world largest Mangala oil field sale to England’s  Vedanta was started as Indian Private public partnership company. KG basin oil drilling was hailed as Indian private ingenuity by reliance but couple of months ago sold to England’s British Petroleum. Largest diamond mines in Panna are sold to De Beers- South African diamond mining giant with English owner. With such list of transfers unending one thing remains rock solid common in all deals- the common thread is NMR as consultants.  
Indian Air force (IAF) is gradually moving to transform it self as Israeli Air Force (IAF) (forgive my ignorance and prove me other wise wrong).  Navy and Army are on the war path to catch up with Air Force.  Some times it looks if we operate our bases from middle east it will be cheaper and we can prepare better to defend India from there.
What is India Inc & Why India Inc wants FDI ?
India Inc is a loose term to designate who is who in Indian industrial sector, the heads of all leading industrial houses. All these industrial houses have two distinctions. They collectively owe corporate tax to the tune of Rs 1.75 lakh crores which makes them tax evaders. Second all of them are named in 2 G scam as perpetrators of fraud. Yet with amazing clarity all of them approach our prime minister and supreme court asking a direction to get themselves exempt from appearance before courts for cross examination and have the audacious guts to request to excuse their private life styles form being disturbed due the probes.  With lightning speed both courts and PMO office grant their request, another example of British laws speedy justice in independent India.
Stalling of FDI becomes anti developmental for India Inc only if the second mode of FDI is accepted following Dubai Formula. The black money transforming in to white and  coming in to India via FII and FDI in fact belong to India Inc  only. If this is stopped India Inc very well knows that western governments will squeeze these funds in to their economic development. So it is a patriot act for them to bring this in to India to develop their fellow countrymen.
Though there are many case studies that could be alluded about the bizarre decisions taken by government of India for the benefit of this India Inc the following stand apart.
During the height of 2008 US crisis India was also reeling but stable under financial stress. During that time the Tatas bought Jaguar car company in England for which British banks promised loans as this sale retains British jobs.  But with the US crisis and British bank collapse they refused the loans. Tatas requested for an immediate loan of Rs 25,000 crores at 5% interest as if they do not buy Jaguar car company India Inc and thus Indian prestige will go down the drain. The funny part was on the day the loan application request was sent the Finance Ministry published the inflation rate is above 10% . Both news items were there on the same side of financial pages of leading news papers of that time. (December 10-12 English or Hindi Dailies or Google Tata request loan for bail out). With amazing speed in two days the dailies reported the loan approval to Tatas from SBI at 5%.  Unbelievable. If inflation is 10% then bank lending rate should be above 10% to keep the real value of the money against future inflation. So the minimum interest charge should be 10% at least. But at 5 % the loan makes an interest of Rs 1250 crores per annum and the total loan at the end of year will be Rs 25 250 crores. But with inflation 10% the real value of loan at the end of the year will be Rs 22500 crores and with the interest at 5% added  will become worth Rs 23 750 crores and lost value of Rs 1250 crores at the end of year. If the loan is repaid in 5 years and if the inflation is at constant 10% then the SBI lost Rs 6350 crores on this loan at 5% interest revenue at the end 5 years. Yet none either from bank, ministry of finance, economics, commerce ever even wrote a protest letter to any one – not even a single letter.
Now for the help India done to India inc their reciprocation follows like this. Tatas went ahead and bought the Jaguar company. They opened their sales outlets in India for this Luxury car. Now this car costs in USA or in UK close to $ 1,00,000 to $ 1,25,000 dollars (roughly translates in to Rs 45 00 000 to Rs 56 00 000- again Google for the price of Jaguar). With this price the Total world sale for this car was only 3 300 units. 
For some reasons unknown to any poor Indian economist and layman alike the same car was priced in India for Rs 1.25 to Rs 1.5 crores. And the sales figure were astonishing 33, 000 units in India alone.  While the SBI was under cut with a loss of 5% net interest, the car was sold for 1,25 times more than the Retail Price that it can get in any standard western outlet. That too when Indian consumers bought 10 years worth of western annual sales in one year. At Rs 50 lakhs profit per piece Tatas made a whopping Rs 16 000 crores profit in first year in India alone which is close to half of their borrowing from SBI. (even at the rate of Rs 45 00 000 retail sale price in west the car company is making a profit). Where the profits go ? We should have known by this time. To Britain. Why ? Silly question to save British life style. Who said it ? NMR.  
What an ordinary United Indian Citizen Can do ?
With Government and opposition willing to protect Western Nations bail out their economies, Army looking at non existing futuristic enemy at borders and preparing to finish them, in a war that never occurs by procuring decade old gadgets and toys from the same western nations,  Legal system guarding jealously still British interests, corporate and their honorable subjects, India inc busy in fleecing what ever remaining in India for British western partners what an ordinary poor United Indian Citizen can do ?
A solution Once upon a Time
3000  years before Acharya Chanakya walked in to the court of Padmananda and Dhananda at their serene capital Pataliputra (current Patna) and told the king that the country was at the verge of occupation and the population was ready to descent in to slavery by foreign invasion forces who are at the gates of Sindhu River (for English educated it is Indus River). He requested Nandas to gear for protect the country. Nandas were bemused at the poor teachers preaching. They concluded Pataliputra and Magadha were serene peaceful and well developed. No threat what so ever except in the figment of the imagination of Acharya Chanakya. So they saw rightfully Acharya Chanakya disturbing the peace of the country, tranquility of people and thus anti development. So they ordered their security forces to beat him up, tear his dress and cut loose his hair and drag him out of the court of serene peace and tranquil development. Acharya Chanakya walked out straight in to the people of Magadha and never stopped until he found Chandragupta Mourya who ultimately with peoples help replaced Nandas and re-established the real prosperity and true security for people.
2011 – Today
Rather than Padmananda and Dhanananda now UPA and NDA enshrined not in Pataliputra but in confined protectorate of New Delhi. The enemy every western nation facing economic collapse appearing salivating not at the Sindhu borders but at the gates of Delhi on the Red carpet to move in for their pound of flesh. The cries of existential danger falling on the years of not Nandas of Pataliputra but on politicians of all shades headed by wizardry prime minister and intellectual opposition leaders wanting to discuss the issue of FDI, as if it is forgone conclusion and ready to brand any one anti development who opposes the FDI, as if they understood the magic of FDI. All ready once again to roll this country -the United Indian Republic- in to fathomless descent of slavery, with amazing clarity.
It is time for every citizen of this country to become Acharya Chanakya in search of modern Chandragupta Mourya-not that we can find one alive- at least to show our resolve that we the Indians united and started a heroic struggle against becoming again slaves to guard our swaraj`.
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