06-18-2025     3 رجب 1440

Strengthening sovereignty

May 22, 2025 |

The country’s plans to tighten foreign ownership rules is a significant step in our economic evolution. As the world’s fifth-largest economy continues to assert itself on the global stage, recalibrating the balance between foreign investment and national interest is both timely and strategic. While this move may create short-term ripples for sectors like e-commerce, pharmaceuticals, and technology, the long-term benefits for our economy, security, and self-reliance are substantial. Historically, foreign direct investment (FDI) has played a crucial role in India’s development — creating jobs, fostering innovation, and facilitating knowledge transfer. However, unchecked or opaque foreign control in sensitive sectors can lead to vulnerabilities. In industries such as e-commerce and pharmaceuticals, where data security, consumer influence, and public health intersect, the stakes are particularly high. By tightening foreign ownership rules, the government under the prime minister Narendra Modi is aiming to preserve our strategic autonomy and reduce the risk of critical sectors being dominated by external entities whose priorities may not align with national interests. One of the immediate benefits of this policy shift is the encouragement it gives to domestic enterprises. With clearer ownership ceilings and regulatory expectations, our startups and companies may find a more level playing field. Domestic players often struggle to compete with global giants flush with capital and resources. A recalibration of foreign control will empower Indian firms to grow, innovate, and scale without being overshadowed or acquired prematurely by foreign investors. This aligns strongly with the government’s “Atmanirbhar Bharat” (self-reliant India) vision — which emphasizes indigenous capabilities and resilience. Moreover, tighter ownership rules can enhance data sovereignty — a growing concern in the digital age. For instance, e-commerce platforms wield significant influence over consumer behavior and possess vast troves of user data. Ensuring that the control of such platforms lies within the national framework will bolster consumer protection, data privacy, and regulatory oversight. Some critics may argue that these measures could deter foreign investment, but this overlooks the broader context. India remains an attractive destination with a huge market, skilled labor force, and a stable democracy. Strategic, transparent regulations do not signal hostility; rather, they reflect maturity and foresight. Investors value clarity and long-term stability, which this move seeks to provide. Tightening foreign ownership rules is not a retreat from globalization but a step toward a more secure, equitable, and self-sustaining economic model. By putting national interest at the core of its investment policy, the government is not closing doors — it is building stronger foundations.

Strengthening sovereignty

May 22, 2025 |

The country’s plans to tighten foreign ownership rules is a significant step in our economic evolution. As the world’s fifth-largest economy continues to assert itself on the global stage, recalibrating the balance between foreign investment and national interest is both timely and strategic. While this move may create short-term ripples for sectors like e-commerce, pharmaceuticals, and technology, the long-term benefits for our economy, security, and self-reliance are substantial. Historically, foreign direct investment (FDI) has played a crucial role in India’s development — creating jobs, fostering innovation, and facilitating knowledge transfer. However, unchecked or opaque foreign control in sensitive sectors can lead to vulnerabilities. In industries such as e-commerce and pharmaceuticals, where data security, consumer influence, and public health intersect, the stakes are particularly high. By tightening foreign ownership rules, the government under the prime minister Narendra Modi is aiming to preserve our strategic autonomy and reduce the risk of critical sectors being dominated by external entities whose priorities may not align with national interests. One of the immediate benefits of this policy shift is the encouragement it gives to domestic enterprises. With clearer ownership ceilings and regulatory expectations, our startups and companies may find a more level playing field. Domestic players often struggle to compete with global giants flush with capital and resources. A recalibration of foreign control will empower Indian firms to grow, innovate, and scale without being overshadowed or acquired prematurely by foreign investors. This aligns strongly with the government’s “Atmanirbhar Bharat” (self-reliant India) vision — which emphasizes indigenous capabilities and resilience. Moreover, tighter ownership rules can enhance data sovereignty — a growing concern in the digital age. For instance, e-commerce platforms wield significant influence over consumer behavior and possess vast troves of user data. Ensuring that the control of such platforms lies within the national framework will bolster consumer protection, data privacy, and regulatory oversight. Some critics may argue that these measures could deter foreign investment, but this overlooks the broader context. India remains an attractive destination with a huge market, skilled labor force, and a stable democracy. Strategic, transparent regulations do not signal hostility; rather, they reflect maturity and foresight. Investors value clarity and long-term stability, which this move seeks to provide. Tightening foreign ownership rules is not a retreat from globalization but a step toward a more secure, equitable, and self-sustaining economic model. By putting national interest at the core of its investment policy, the government is not closing doors — it is building stronger foundations.


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Owner, Printer, Publisher, Editor: Farooq Ahmad Wani
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