Date:15/02/2006 URL: http://www.thehindubusinessline.com/2006/02/15/stories/2006021500851002.htm

Back FDI and the economy

This is with reference to, "FDI may be harmful to economic growth," (Business Line, February 9).

The article is an eye-opener and proves how little knowledge can create misconceived notions.

The author has pointed out how domestic saving is a better and more reliable fuel for economic growth. And also that higher FDI does not essentially lead to growth. Since the Sensex is believed to be a barometer of the economy, it shows that there is no linear relationship between FDI and economic growth.

Ritesh

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