Thread by @t_d_h_nair

1/Modi, Jaitley and other BJP leaders often point out FDI inflow is highest after Modi government took over

2/ This is one of the main argument they put forth to say the economy is in good shape. Both PM and FM did that many times in recent past

3/ They r right. Numbers says FDI inflow actually increased
m.rbi.org.in//Scripts/Publi…

4/ Where r this kind of money coming from? Which are the countries investing in India so heavily when International +

5/ rating agencies are not giving a great outlook. All the major 3 ratings of India r just above the “junk” level
countryeconomy.com/ratings/india

6/ Instead of taking corrective measures, World renowned economist Modi wanted to create a new rating agency
economictimes.indiatimes.com/news/economy/i…

7/ Check top 10 countries invested in India in last three years

8/ Out of the ₹1,787,555 crore came in as FDI in last 3 years, ₹947,723 crore came in from 3 countries -Mauritius, Singapore and Cyprus

9/ ₹585,950crore from Mauritius, ₹315,042 crore from Singapore and ₹46,731 crore from Cyprus.
dipp.nic.in/sites/default/…

10/ What is so special about that? Why theses three small countries invest so much in India? Here is the answer
livemint.com/Money/rMGCmOeN…

11/ So, why there is a special consideration? And how do these countries have so much money to invest considering they r too small

12/ For eg. GDP of Mauritius in 2016 was $12.16 billion and total national savings was less than $2 billion and still Mauritius invested +

13/ $11.63 billion in India.Don’t get puzzled. Answer is very simple. It is because all these 3 countries r tax havens

14/ To understand what is a tax haven and how does it work is explained here in detail in most simple terms
rashminsanghvi.com/downloads/taxa…

15/ It does matter because of money laundering charges against Indian corporates like Adani Group.
thewire.in/168530/adani-b…

16/ The above mentioned is just one case. Nobody knows the actual amount which might have gone out like this over the years

17/ Not only corporates, but a lot of politicians across party lines and celebrities did this for years

18/ Remember Modi’s promise of bringing back lakhs of crores of black money and ₹15 lakh in every account?
Panama papers?

19/ No wrong in believing most of the money which went out already reached India through FDI route from these tax havens.

20/ If that money is back, it is not black money any more and they don’t have to pay tax! And nobody knows who r the real beneficiaries

21/ Let us go back to the main topic - Highest FDI inflow after Modi came in to power. Where are this much money getting invested?

22/Almost 34% Foreign funds r invested in ARCs since 2015.What is an ARC and what do they do?
business-standard.com/article/econom…

23/ If explained in most simple words, ARCs are players who pick up the NPAs of banks and financial institutions
icrier.org/pdf/Working_Pa…

24/ Why they r attracting so much FDI? This Screenshots r self explanatory.

25/ It shows, ARC business includes huge profit margins. And Indian banks’s NPAs are at an all time high

26/ This is the opportunity for ARCs to mint money. And banks can relieve themselves.

28/In nutshell, As Modi claims,huge FDI is not coming in to new businesses or manufacturing n has nothing to do with Make in India

29/ Maximum of it is coming to service sector - especially financial sector and towards brown field projects

30/ There is nothing to cheer about that, because there is no new wealth creation or job creation happening in India because of this

31/ Data shows, The total number of Industrial Entrepreneurship Memorandum (IEM) applications decreased

32/ from 2,365 in 2013 to 1,801 in 2014, which reached to 1,909 in 2015.

33/33 But, citing the very big numbers, Modi and team are befooling the general public, as usual. But, for how long?pib.nic.in/newsite/PrintR…