Group Discussion is a process that fosters dialogue by creating a conducive environment. Whatever you do at Group Discussion (GD) usually does have an impact on your interview also. Sometimes, a significant part of the interview is devoted to whatever one said during the GD. Hence, there is a need for a systematic preparation schedule even after appearing in the written examination.
There is a group of six candidates aspiring for a coveted job. They are well-acquainted with the cut-throat competition around them. A topic has been given to them. Time has been allowed. After the subject has been announced, the candidates are relaxed. The timeshare for each contestant is pre-decided. For the sake of convenience numbers 1, 2, 3… have been allotted. One of the contests gets up and seeks the attention of the other participants. He shows leadership quality and understands the importance of time. As the discussion is to be completed in the stipulated time, he makes the friends aware of it. He advocates for discipline and no interruption during a friend’s speaks. All agree to abide by the discipline Among the contestants sitting around a table, No.1 starts the proceedings.
Should Foreign Equity be Allowed in India? – Group Discussion 2024
No.1: Dear friends, we are sitting here to discuss the proposition “Should Foreign Equity be Allowed in India?”. I agree that it should be. From the First Five-Year Plan (April 1, 1951) India had started its journey towards economic development on the path of Socialist pattern of society and mixed economy. So far, India has completed Nine Five-Year Plans and Five One-Year Plans. It is clear that in these five decades, Indian economy has achieved many successes but the number of failures is by no means small. During the period of planning, public sector was given the utmost importance. The government maintained strict control over the private sector, imposing numerous restrictions on trade and industry. Bureaucracy and red tapism were common characteristics of the Indian economy. All these factors had the cumulative effect that by the end of June 1991 our country was facing a serious economic crisis.
Foreign currency reserves were just enough for two weeks of imports. There was no new loan. Large amounts of money were withdrawn from the accounts of non-resident Indians (NRIs). Widening fiscal deficits, rising adverse balance of payments, Gulf crisis, declining foreign exchange reserves, the poor performance of public sector enterprises, etc., necessitated economic reforms: It was June 1991 when Manmohan Singh took over as Finance Minister of India They took steps to globalize. Economic reforms suggest that the Indian economy should be closely connected to the global economy. Consequently, there would be a free flow of goods and services, capital, technology, and labor across different countries. The cooperation of the Indian economy with various economies around the world will increase. Capital and technology will flow to India from the developed countries of the world.
(Comments: No. 1 has vividly expressed his views about the need to introduce economic reforms in India. But he has not emphasised on the topic of discussion. He has lost time to come to the point and hence despite having knowledge of the topic, as it seems from his introductory discussion, he could not highlight the proposition.)
No.2: Dear friends, No.1 has clearly highlighted the need of reforms in Indian economy. Foreign equity is one of the components of globalisation of Indian economy. It is indubitably the era of globalisation and the multinational corporations. The presence of Multi National Companies (MNCs) has widespread implications that are reflected not only in the domestic arena but also on the global stage. Many people feared that domestic industry might suffer due to the advent of MNCs. However, all those people crying hoarse with the slogans of Swadeshi and Socialism, have now wisely accepted the fact that the MNCs are here to stay and make India a truly global business centre, During the past 14 years, almost all the political parties have been a part of the government but nobody dared to discourage the Foreign Direct Investment. The domestic industry has also, in fact, prospered in the presence of foreign counterparts.
Allegations against MNCs dumping technologies also hold no weight since the consumer today demands the best quality at a given price. The intense tough competition in the market eliminates any possibility of deceiving the customers. Today, only those companies that are “lean and mean” can hope to win the customer’s attention. Gone are the days when inefficiencies could be passed on to the consumers. The consumer is the king today. That is why the badly run companies, both in the public and private sectors, are feeling the heat today. A robust economy -demands a healthy corporate sector that thrives on competitiveness rather than complacency. The MNCs have definitely acted as saviour of the sinking Indian economy. However, the Indian economy still has a long way to go before stablising itself on firm roots.
(Comments: No.2 has cleverly utilised his time in concentrating on the topic. In a nutshell, he has advocated for foreign investment in the growth of the Indian economy. However, he has not described other aspects.)
No.3: Dear friends, I was eagerly waiting for my turn to share my view with you. My friend No.2 has discussed the topic with ability and his expression and knowledge need no support from me. I agree with his views. With the advent of MNCs the economy and society have passed through a transition period from the days of struggling middle class living in the quagmire of deprivation to the present time of a powerful and emphatic middle class. Before liberalisation, India had been primarily importer of technology from the developed world. However, in the post-reforms era, the trend has reversed. The Indian youth who earlier used to yearn for the west in search of big money, working culture, social independence and technological advancements, now finds all of the above in Indian set up. He no longer has to settle himself in an alien environment because MNCs have not only transformed the salary structure but also the social structure of India in a big way. Indians are turning global in the true sense of the term with opportunities to enjoy the same world class facilities which their counterparts do in the west. It has helped upgrade our standards and compete in the world market. These MNCS have changed the corporate culture in radical ways. They believe in empowering the employees so that they help the organisation to grow and simultaneously, grow with it. This is all, I have to say.
(Comments: Like No.2, No.3 has also expressed his views in clear terms. He has tried his best to concentrate on the topic. No explicit deviation is noticed. His arguments are convincing. He emphasises on the work culture and opportunity for the youths. He is intelligent, able and dynamic candidate. His approach throughout has been positive.)
Group Discussion Topic: Should Foreign Equity be Allowed in India?
No.4: Dear friends, I find myself unable to add more to what has been said by my learned friends. In my view, No.3 has explained the benefits of foreign investment very clearly and I wholly agree with him. If I say anything further, it would only be a repetition of statements. It would be better if some others put their views. Thank You.
(Comments: The contestant lacks ideas and is not assertive. He prefers to obey dictation and do the minimum required. He lacks the leadership quality and hence will not be able to assume responsibility.)
No.5: Friends, I acknowledge the views suggested by my friends. They have seen the only face of coin, as I feel. In 1991, Finance Minister Mr. Manmohan Singh announced a gradual and steady opening up of the economy for Foreign Direct Investments and MNCs. The measure was directed towards giving a boost to the economy which lay in the doldrums even after half a century of achieving independence and to divert from the hackneyed socialist pattern which had failed to meet its prime objective of eradicating poverty. No doubt the implementation of the reformist policies injected fresh life into the economy and led to rapid growth in industrial, consumer and service sectors with India assuming the mantle of an IT superpower. However, the reforms bring nothing for those who barely survive the acute problems that poverty brings with it. Although the post-reform phase did show marked improvement in the industrial and services sectors yet there simply is no evidence that suggests that the common man eventually benefited from the so called New Economic Policy. The Indian consumer has been crowned the king and Indian shop sheaves are already stocking a range of foreign consumer goods hither to seen only on TVs. The consumers are thus gifted with more options in purchasing goods for their luxury. However, the interests of the Indian producers, particularly, of the smaller and poorer type have been unabashedly sidelined. It is at their cost that the rich flaunt their luxuries. There is a threat to the livelihood of millions of primary commodity producers. Foreign investors only think of profits, not the amelioration of the poor. India is a welfare State. It is duty bound to assuage the pain of large populace. Due to absence of proper channelisation, the poor still live in pitiable condition as their forefathers did during the exploitative British Raj. The only difference now being the complexion and lineage of the exploiters.
(Comments: No.5 has put his words strongly. Although he came into the scene late, he has made a very good impact on the group. He has fully demonstrated his views that he can shoulder new and challenging, responsibilities with courage and determination. His approach is rational, logical and purposive.)
No.6: Dear friends, I patiently heard your views. Some of you have put forward strong views. That seemed convincing. I agree that foreign equity should be allowed. India’s socio-economic development in today’s rapidly changing world, where maps are being redrawn, power equations rewritten, alliances formed between the unlikeliest, is possible if India shakes off its stupor and awakens to ask for and achieve her rightful position in the world trade. The hunger poverty and unemployment of this nation cannot be solved by misleading slogans only but by having a healthy economic infrastructure so that India may become an equal and aggressive partner in world trade. The positive impact of free and competitive trade on the domestic economy. Since 1947, India operated under the protectionist framework of socialist ideology, shielded from global competition by quotas, import licensing, and extensive bureaucratic red tape. However, the entry of multinationals in 1991 compelled Indian industries to compete directly with them, adopt the latest technology, invest in research and development, and focus on profitability, rather than relying on government-supported institutions and ideologies.
A cursory glance at the level of fiscal deficit, forex reserves and inflation would make it clear that the Indian economy is definitely much stronger now. Certain macro-economic parameters like inflation, fiscal deficit, development of infrastructure and growth of the industrial sector reveal a positive picture of the Indian economy. The question today is how to take India on the road to economic progress. However, there should be a right mix of caution and aggression. If we seek safety by shutting off investment, we will perish. Our international trade will be affected. Indian companies have always been known to be lacking in the R & D sector. However, things have changed with the entry of MNCs. The foreign companies brought along with them technologically superior products and therefore, the Indian products definitely felt a bit stifled in their presence. Hence, the R & D sector put on the back-burner has now begun to get its due share with the Indian customer turning out to be the eventual, gainer. Moreover, foreign companies have evinced interest in key infrastructure areas like power and roads which are in a quite sorry state in the country. Hence things are going to change for good.
(Comments: No. 6 has been a silent observer. He heard patiently but spoke boldly. Socially he is cheerful and shows tact and understanding. He has thoroughly analyzed the subject and successfully persuaded and engaged his audience. He is a true leader in the group.)
Result: Group Discussion
Except for Nos. 4 and 6, this is more or less a homogeneous group. No. 1 has taken the lead in enunciating the topic and helping the group in this task. He has emerged as a natural leader of this group. He is followed by Nos. 2,3 and 5 who are selected.