Foreign Direct Investment (FDI) plays a pivotal role in India’s economic growth by providing a substantial source of non-debt financing. To enhance FDI inflows, the Indian government has implemented several strategic measures. One of the key initiatives is the “Make in India” campaign, which aims to simplify procedures and promote a favorable investment climate across various sectors.

The liberalization of FDI policies, especially in critical industries like retail, defence, and insurance, has made it easier for foreign investors to enter the market. The introduction of the Goods and Services Tax (GST) has also improved transparency, making India more attractive to investors. Special Economic Zones (SEZs) offer tax incentives and dedicated spaces for businesses, further encouraging investment.

Additionally, India has seen a significant increase in FDI due to reforms aimed at improving the ease of doing business. The cumulative FDI inflow has surpassed $1 trillion, reflecting a robust policy framework and a dynamic business environment. These initiatives, combined with a growing market and competitive labor costs, have positioned India as a top destination for foreign investment, aiming for an ambitious target of $100 billion in annual FDI.

Challenges in Securing Critical Mineral Supply Chains

1. Overdependence on Imports
   • India imports 60% of its rare earth minerals from China, making it vulnerable to supply disruptions.
   • The country is entirely dependent on imports for germanium and gallium, which are crucial for electronics and renewable energy technologies.
2. Limited Domestic Exploration
   • Only 48% of mineral blocks auctioned between 2020-2023 were sold, with many lacking sufficient geological data.
   • Outdated exploration techniques hinder private investments.
3. Underdeveloped Processing Capacity
   • India lacks the infrastructure to process critical minerals, like lithium, discovered in Jammu & Kashmir, leading to reliance on foreign processors.

Suggested Measures for Strategic Availability

• Centralized National Authority
  • Establish a Center of Excellence for Critical Minerals to streamline exploration, processing, and recycling efforts.
• Fiscal Incentives
  • Provide upfront subsidies and tax rebates to encourage private investments in exploration and processing.
• Public-Private Partnerships
  • Foster collaborations with global leaders (e.g., Australia’s Lynas) to enhance domestic refining capabilities.
• Recycling Initiatives
  • Invest in advanced recycling technologies to reclaim valuable minerals from e-waste, reducing import dependency.

These measures can strengthen India’s position in the global supply chain of critical minerals, essential for its green economy transition.

Despite various government initiatives to boost investment, domestic private sector investment in India remains subdued due to several factors. The World Bank’s report highlights that while India’s economy has shown resilience, global challenges such as high interest rates, geopolitical tensions, and sluggish demand have created an adverse environment for private investment.

Domestically, structural issues persist. High tariffs and burdensome business regulations deter small industrialists from investing in manufacturing sectors. Additionally, the stringent bankruptcy code instills fear among entrepreneurs, discouraging them from taking investment risks.

The recent budget’s focus on short-term economic relief, such as tax cuts for the middle class, over significant reforms has also raised concerns. The reduction in capital spending and infrastructure investment may limit long-term growth prospects, further dampening investor confidence.

Moreover, the World Bank notes that private consumption growth is likely to taper off as post-pandemic pent-up demand diminishes and persistent high food price inflation constrains spending, particularly among low-income households. This anticipated slowdown in consumption reduces the incentive for businesses to invest in expanding production capacities.

In summary, a combination of global economic challenges, domestic structural issues, policy choices favoring short-term relief over long-term reforms, and anticipated declines in private consumption contribute to the subdued state of domestic private sector investment in India.

Do the Means Justify the Ends?

The question of whether “means” justify the “ends” is a significant ethical debate.

1. Utilitarian Perspective

• From a utilitarian viewpoint, actions are justified if they result in the greatest good.
• Example: A manager might cut costs unethically to save jobs, believing the positive outcome justifies the process.

2. Deontological Perspective

• Deontological ethics argues that actions themselves must be moral, regardless of the outcome.
• For instance, lying to achieve a good result is still wrong because honesty is a duty.

3. Balancing Both Views

• In practical situations, a balance is often sought. For example, while transparency is valued, minor compromises may be accepted if public welfare is achieved.

While both perspectives offer insights, the ethicality of means often depends on context, making it a nuanced issue.

Salient Features of Vivekananda’s ‘Universal Religion’

1. Unity in Diversity

• Vivekananda advocated for a religion that embraces the strengths of different faiths.
• Example: Embracing both the compassion of Buddhism and the devotion of Christianity.

2. Inclusive and Tolerant Approach

• He emphasized mutual respect among religions, promoting tolerance rather than conversion.
• Illustration: He saw all religious paths as valid, likening them to rivers that all lead to the ocean.

3. Practical Spirituality

• Religion should be action-oriented, with a focus on improving life for all.
• He encouraged helping the poor and education as part of spiritual duty.

4. Individual Empowerment

• Vivekananda emphasized that spiritual realization is possible for everyone.
• Example: He encouraged self-reliance and inner strength.

This universal vision aimed for harmony and progress, balancing spiritual values with societal needs.