Is Foreign Direct Investment (FDI) in retail sector good for India?

Group Discussion

Points to remember before you participate in this discussion:

  • Assume, you one of the member of a real group discussion.
  • Take the initiative to participate and contribute your thoughts.
  • Express your positive attitude towards providing the solution.
  • Post your answer now.

Gaurav said: (Oct 21, 2016)  
FDI is must for a developing country like India. With the variation in economic growth rate and increase and decrease in inflation rate, FDI's play a major role in providing stability to the economy. Foreign investments give a boost to the economy by increasing cash flow in the economy. Industries are set up, expansion of previous industries takes place and production are increased meeting the increasing demand and hence by controlling the inflation of the country. SEZ are provided and introduction of GST gives liberty, transparency, and ease to do a business becoming magnet for foreign investment.

Rate this: +7 -0

Vibhu Agarwal said: (Oct 21, 2016)  
In my opinion, 100% FDI in retail sector will adversely effect the social upliftment in India, as it will benefit economic growth but major players will exploit maximum and domestic players will be out of the market. It will generate competition but among foreign countries to how effectively they can exploit the Indian resources by serving cheap products with advanced technology but what about the people who indulged in small businesses, more than 270million people in India are engaged in Shopkeeping business it will first give employment and after that it will take jobs of those 270 million people. FDI is a two faced coin, policies related to it should be properly formulated to avoid any cumbersome.

Rate this: +4 -2

Komal Mansukhani said: (Oct 21, 2016)  
FDI is as necessary as in our food new varieties are required. Because the competition is must in everybody's life. So until we don't get the chance to prove ourself so there India can't succeed. It is great we get FDI with that we come up with the new technologies so with that our country will get developed and there in the world, we can stand in the good position and be proud of our country by proving ourself.

Rate this: +0 -0

Arnab Das said: (Oct 20, 2016)  
Hello everyone, as we all know that India is a developing country that's why we are not technologically strong. We are developing but that's not up to limit. But foreign countries who are investing in our country are technologically updated respectively. That's why the products brought by them in our country are generally affordable by the middle-class community. Cost of production of a product in our country will be the cost price of that similar product made by foreign countries. So our home products are running in loss. So we have to try our best to make our technology upgradable so that most of the community can use the country product.

Rate this: +0 -2

Prajakta said: (Oct 20, 2016)  
According to me, FDI is good for India It will help to grow nation like a new job opportunity, creation employment for middle-class people.

It will use full for us and our nation.

If the FDI merge with the retail sectors it will more help full for increasing the quality of products.

They will try Maintaining quality at the same rate.

It will help full also controlling inflation And reduced the gap between middle class & poor people.

Rate this: +0 -0

Vishnu said: (Oct 20, 2016)  
Hi, think there is need of FDI, it he helps to develop our country and also boost the employment in India and also we got knowledge about new technology. The FDI is important but we note also one thing that the Indian small industries are growing so the limitation of FDI is also necessary.

Thank you.

Rate this: +3 -0

Ravi Kumar said: (Oct 19, 2016)  
Hello everyone, FDI in retail sector brings a lot of challenges such like consumer have too much option also we aware too much new brands and a variety of products.

A simple solution that small investor merge together give the competition.

Also India developing country they need it because poor people do not use hike price product Brings of FDI price of the good quality product affordable for everyone. We all Know that population in India for average and low-income groups are too high.

Rate this: +10 -3

Pujitha Ramini said: (Oct 17, 2016)  
With FDI, the retail sector, small companies and merchants will suffer a lot. Inflation (the rise in prices over a period of time) may be increased. Technological dependence on foreign technology sources.

Rate this: +14 -6

Aprajita Srivastava said: (Oct 17, 2016)  
In my opinion, FDI in retail sector is good for India. FDI has lot of advantage as it will boost up the competition in Indian market. And we all know that in competition, everyone wants to become number 1, so Indian people will make their best efforts in the competition. And moreover, FDI brings employment as it requires the number of employees for their work. With the coming of Walmart, nothing goes closed. So I think it is boon.

Rate this: +12 -3

Anusha said: (Oct 15, 2016)  
FDI brings competition in India, in my point of view, it increases the large scale sectors. It should be implemented in small scale sector India will become developed country.

Rate this: +5 -1

Vaishnavi said: (Oct 15, 2016)  
FDI is like making an MNC.

As everything has its, merits and demerits FDI also has.

FDI for investors, it can lead to great profit and for consumers, quality of others countries may be high and better.

But for small investors, it can lead to a loss because consumers will be interested in high quality which may be they will not be able to provide at a lower rate.

Rate this: +4 -1

Rishika said: (Oct 15, 2016)  
According to me, it is good to some extent, but 100% in all sectors would be way too much. Our Indian economy would b adversely affected because of it. Major population of our country is poor and FDI will make it poorer. It will eventually widen the gap between rich and poor.

Rate this: +16 -3

Manish Kapoor said: (Oct 14, 2016)  
Everyone have their opinion to say on the topic in my opinion, FDI is important but not as the decrease the productivity of their country.

The taxes and other thinks which are taken from other countries for the establishment of their industries are taken more than home productive products.

Rate this: +5 -3

Abi said: (Oct 14, 2016)  
Hi, friends.

In my view, FDI is partially good and partially bad.

We should have some control measures to prevent ourselves from the bad one.

If we have done that we may control the disadvantage.

Rate this: +3 -8

Bipuljee said: (Oct 14, 2016)  
According to me, FDI in all sectors is the major cause of growing disparity in India. There must be the constraint in certain fields such as agriculture, domestic groceries and pharmaceuticals up to 100%. Everyone must have equal opportunity to avail the benefits of FDI. Moreover, it must not be encouraged to the full extent in any area. Any foreign company must not overshadow our Indian company. It may give a cut-throat competition to Indian market but must not have the potential to uproot it.

Rate this: +12 -1

Sakshi Bansal said: (Oct 13, 2016)  
According to me, there should be FDI but up to some extent. As the population of India is still living below poverty line and their livelihood depend on small scale industry and Kirana stores and if we allow FDI than obviously, they are going to have supermarkets and malls and people of India will prefer to go to these stores where they can get more choice and better offers. So, FDI should be up to some extent only to protect all the 3 sectors of the society and to maintain the balance between the poor and rich people.

Rate this: +10 -4

Mohit Srivastava said: (Oct 13, 2016)  
Hello everyone, as far as the FDI in retail sector is considered I am partially against with it. First of all, I would like to tell you all the growth of the economy through these business affects the life of three groups of people in three different ways. If we have to decide whether the result of applying such business strategy will flourish or not then we will need to decide that which group will face the atmost impact and thus we will realise it is beneficial or not. I would like to tell you all that a survey from NCARE claims that middle-class people in India is about 267 million, far greater than rich people but less greater than poor people. Hence the opportunity of jobs for the middle-class people will increase at the same time among these middle-class people about 30 percent people have local shops or kiranas. For these people their shops are considered to be the source of livelihood. These people will suffer serious loss if super malls or malls replaces them.

Why one will buy things from these if can it from a supermall with more varieties. Apart from that, FDI will increase the difference between the rich people and the poor people.

Indian economy depends much on middle-class people but if these people will get poor, the will be quite different from growing India to suffering India.

Rate this: +26 -2

Vivek Kumar said: (Oct 12, 2016)  
Hii friends,

In my opinion, if FDI provides jobs for only Indians, in other words, if all works are done in FDI by Indians, then FDI in retail sector is good for India. Because in this time India is suffering from unemployment. I think FDI brings a lot of job & it creates an environment of cheap & quality products market. Inflation will be also controller & in the large amount Foreign currency will also come in India, which increases our economic growth.

Rate this: +12 -1

Atasi said: (Oct 11, 2016)  
Government's initiative for FDI no doubt a good decision as it not only helps in solving our nation's unemployment problem but also aid more finance to our government. But if these FDI sectors are given importance to rural people by accepting directly product from rural people, it creates more opportunity for rural people. We know that if the rural area will develop then automatically India's growth will develop. So if these FDI sectors are direct support in retail market it will directly link with India's economic growth.

Rate this: +4 -1

Kushal Dubey said: (Oct 11, 2016)  

From my end, FDI helps in the economic development of the host country (where the investment is being made).

For origin and host countries, FDI provides access to new technologies, products, skills and organizational and management strategies.

Employment increases in the host country.

Origin country (the country which makes the investment) also develops economically.

Competition increases. So that, with the competitive spirit, every company improves to its best.

Through FDI in production companies, the price reduction is possible.

FDI is a boon for the small companies to become more actively involved in international business activities.

Agriculture related people get the good price for their goods as middle men will be eliminated.

Rate this: +5 -1

Nitesh said: (Oct 11, 2016)  
I would like to take the right side in given context. So far FDI in retail sector has done lots of positive and it's utterly benefactor for the Indian economy. Also, it will help to increase the better quality product. Through this, the retail sector can entice several customers. And will encourage the confidence of Indian retail market.

Rate this: +2 -4

Amit Sharma said: (Oct 10, 2016)  
Good evening friends,

In my opinion, FDI in retail is a good initiative by the government I am saying this because of the following reasons.

Firstly It brings us much-needed investment which we need to become strong economy like European countries.

Secondly, it brings us the latest technology and the infrastructure which ultimately helps our nation to grow.

Third It creates employment for our youth for which govt is striving for so long.

Apart from these benefits,

It also helps the ancillary business units which supply the products which mean it helps in investment in MSMEs. Govt will get tax from these units.

FDI in retail also helps customers by providing them cheap and good quality goods.

So I feel it will help in the overall growth of nation.

But govt should make some laws so that the farmers and local business stores can also service.

Thank you.

Rate this: +34 -2

Sudhansu Shekhar said: (Oct 9, 2016)  
Every coin has two sides. And this is also a case in FDI in retail sector. On the one hand, FDI boosts economy by creating jobs and competition in market and advancement in technology, also initiate a cycle due job creation there is a more demand, more production, and more production need more labour. On the other hand investor, sole purpose is making the profit as much as and resulting they buy cheap product after that with the use of technology they sell at higher price. And local manufacture affects very badly and that product is bad for health also.

Rate this: +1 -1

Sudhansu said: (Oct 9, 2016)  
Yes, because FDI is directly related with job. And due to FDI competition will be an increase in the market.

Rate this: +2 -2

Mohit Garg said: (Oct 9, 2016)  
According to my point of view, Foreign Direct Investment (FDI) in retail means foreign direct investment in the Indian retail business. The retail business can be either a single brand retail business or multi-brand retail. At present, foreign direct investment (FDI) in pure retailing is not permitted under Indian law. Government of India has allowed FDI in retail of specific brand of products. But the major concern is regarding the government's decision to allow FDI of 51% under multi-brand retail.

Rate this: +1 -0

Jalamsisodia said: (Oct 7, 2016)  
FDI is good for India because it provides the foreign companies to invest in India than opportunities of employment and job also increase. So it is grateful for Indian people.

Rate this: +8 -3

Ankita said: (Oct 7, 2016)  
Yes. FDI in retail sector is good for India because it provides good quality of products and people generally prefer the best things. It will be a competition for Indian investors to build a high profile product which can be flooded in the market.

Rate this: +8 -2

Imran Khan said: (Oct 5, 2016)  
Hi everyone, FDI would have more detrimental effect on the overall business potential of India than reviving it. Though it may sound sweet to hear that the flow of money into the system would boost the economy by organising the sector. But if we look into the other side of it we can see that the sole purpose of the investor would be get maximum retiring for their investment which would eventually gonna lead to the extortion of the labour class and increasing the disparity between rich and poor.

Further because of the FDI in retail sector many small shoppers and Kirana shop owners would loose their business against the global players like Walmart, Big bazar which would create more loss of employment. Because these players have more control over price.

So I recommend even if FDI is allowed a maximum percentage has to be set up along with keeping the interest of small and local players in mind. On the other hand, local players should woo their customers by providing better service like home delivery, cash on delivery, quality product, easy return policy etc.

Rate this: +15 -5

Muktikant Mohapatra said: (Oct 5, 2016)  
FDI is as well as good & have bad impact on our country because they invest their money to sell their innovative products for which the unemployed people can be employed BT it affects the economic condition of our country because of theIR highlighting of products for which our Indian's productive power decreases and they will prefer FDI products for which FDI incomes more money from them & our Indian companies goes on losses.

Rate this: +6 -1

Devendra said: (Oct 3, 2016)  
Hello, everyone.

I agree with as all of my friends says FDI is best for our country to growth economically, its provide employment, due to competition between company makes good service and good product and enhance product quality, all of that makes our country build up. But I want to add one more critical thing all investors want to get more profit so they purchase the cheapest product and modified it with new technology and sell with high price, instead of that they do not purchase the high-quality real product from farmers and all of them ignore that, so all of the value of farmer product becomes vanish. And due to this they farmers produced valuable product after hard working they don't gain real selling price for their product and value of this product go down in market, and all of you know the farmers have only one hopes to live and that is their product if their product doesn't have sell then how they live ? and how they improve ? And due to this problem, they tend to vanish and one of the most parts of our country goes to poor and poorer, how our will country develop?

Due to this, all richest person will become more rich and poor people become poorer.

And even all product they have made most of them are harmful to body because we don't gain real quality of product say. Noodle etc.

I know FDI is best, so I would like to suggest one modification their process, the government should apply the rule of their process they should purchase product from real product like farmer, not all these cheapest product so it will benefit for our nation people will get good quality, and even better for poor farmer. So due to this, our nation will develop entirely.

Thank you.

Rate this: +38 -5

R Sai Prasad said: (Oct 2, 2016)  
Yes. FDI is a better way for INDIA as it helps in the creation of employments, also increase economy of INDIA. FDI also cause an influx of soft skills and advance technology in the domestic market to which countrymen can approach.

Rate this: +5 -3

Debashish Adhikary said: (Oct 1, 2016)  
In my opinion, FDI is good. There should be a free market where everyone is free to do business. It is also true that competition makes the quality of goods and services better.

Rate this: +17 -3

Shrishail.S.R said: (Oct 1, 2016)  
Yes. FDI is good for India. Because it helps to utilize the resources of our country, provides job opportunities and helps to build our country strong in economically.

Rate this: +1 -6

Prerna said: (Oct 1, 2016)  
Yes, FDI is good for company it helps in development of nation. It provides employment to many people.

Rate this: +1 -4

Sanjay Sharma said: (Sep 30, 2016)  
First of all, we know that FDI investment it does not mean that a country incurs a loss if any foreign investor comes to set up their business to earn something so it is help our unemployment problem, employment opportunities play a vital role to continuous flow of money supply money supply increases automatical demand increases, demanded increases means more investment, more investment means employment opportunities increases money plays a vital role if FDI gave an employment opportunity then it is good for economy as my above explanation so FDI is good for economic growth.

Rate this: +9 -7

Sakawat Ali said: (Sep 30, 2016)  
I think this is a good initiative of our government. FDI will create more jobs and result in decreasing unemployment. We can work with MNC's and there will be an interaction with the world. But on the other hand, it will be harmful to our nation because with FDI we are making India a job seeker, not a job creator. Our people will remain employed and the most important thing is that in this era every nation wants to be strong in all fields either in business or security then how can any nation provide us the best technology? No one wants to make India his competitor. So it can be a threat to our future.

Rate this: +29 -9

Thasim Nadheer said: (Sep 29, 2016)  
FDI it's not fair for INDIA. It will badly affect on Indian retail sector.

The Indian government is not placed here to do something for foreign investors.

It was completely placed for the entire Indian investors.

Indian investors' economic status will decrease due to FDI.

So the FDI is highly resisted one in India.

Rate this: +18 -7

Saikrishna Adepu said: (Sep 29, 2016)  
Foreign direct investment is good for India because it will be increased to the value of rupee compare to the dollar and international companies are interested in investing money in our country for giving a better product. They are creating a lot of jobs in India. It is more help to make in India.

Rate this: +17 -5

Suresh said: (Sep 29, 2016)  
Yeah, it is good because if foreign companies came here then they can directly use the many crops or other things as a raw material so people got money.

Rate this: +3 -6

Rahul Garg said: (Sep 29, 2016)  
FDI is not good for making India a developing country. As the foreign companies buy the low-quality products from farmers. They made the high-quality product by applying modern technology, the new method on low-quality products and sell it at high prices. It leads to the decrease in the retail market.

Rate this: +1 -5

Dhruval Parikh said: (Sep 28, 2016)  
In my view, FDI should not allow in India, because Indian rupees are rotated in India.

2nd think - Foreign are invest in India and in starting prices are very cheap and then after they are famous with increasing the prizes and despoil the people.

Rate this: +2 -5

Nptr said: (Sep 28, 2016)  
India has two choices in front of it whether runs for the development or give side for others to pass us. Modi govt have decided to go for it as result of it, they initiated so many programs one of it is raising the current FDI level.

The decision by the govt will results in creating employments in whole over India, as the money flows the demand for everything will automatically raise. This will a positive effect in our Indian economy.

Rate this: +5 -0

Bharat said: (Sep 28, 2016)  
I think FDI will give boost to our economy many new jobs will be generated. Interaction of our country will be better with other country and value of currency will be better. But there are some disadvantage off course employment will increase but what will be retailers?

Rate this: +4 -3

Deepak Sharma said: (Sep 27, 2016)  
I think FDI will be beneficial for Indian economy because of if foreign company comes in India they will be demands for a good product from farmers or small factories and of course they will be paid a good money for that and we get a good product. They have to be paid a large amount of money as the tax to gov, of India.

If Indian economy will grow as possible by FDI then production cost and product price will be reduced because of increased value of Indian currency.

Rate this: +34 -4

Kailash Vishwakarma said: (Sep 26, 2016)  
FDI in retail sector will be helpful as it will decrease the net investment in the production and services. It can Boost the Indian economy. But every coin has two faces. It has some disadvantages too, but it can be ignored as the advantages are more.

Rate this: +18 -5

Pooja said: (Sep 26, 2016)  
According to me, FDI should not allow in India because FDI company product is too high rang of price for compared to our Indian product so many middle-class families does not afford that FDI product of rate. FDi company purchases our small need of stuff from India and they will make the product and they will sell high rang off the price. So there would be profit only of FDI company, not Indian people and retailers.

Rate this: +10 -7

Vinu said: (Sep 24, 2016)  
Hello friends,

I respect to all your opinion. Somewhat different point I would like to insert in, that is the flow of FDI in retailer sector will be restricted it will be allowable for production, technology. IT sector. Because most of the Indian people do farming and earning money by selling their products which have desi real quality instead of in FDI they brought the cheap product which has minimum quality & vanishes our desi quality. Such kind of case had happened in the period of PM Lal Bahadur Shastri. For that reduction purpose Indian government creates a new market forum & craking marketing skill among the people.

Rate this: +8 -5

Neha said: (Sep 24, 2016)  
I think it is important for the country to increase economical.

Rate this: +6 -10

Gangacharan said: (Sep 24, 2016)  
According to me, FDI in the Indian economy is too important. It Would boost our financial crisis somehow. It would create more job facility though technology is used excessively. It would offer us good foreign skill. The competition between different companies in India will grow. This way we can get low-cost but high-quality products. However, we can say disadvantages are common to everything but we should look to the positives only.

Rate this: +27 -4

Ashwini Mandal said: (Sep 24, 2016)  
According to me, as we know everything has advantages and disadvantages, before going to any opinion we should see both views. FDI also both sides advantages and disadvantages:


Helps to deal with unemployment problem of the country.

1. New jobs would be Create.
2. Use of latest technology.
3. Improve in Economy as hosted companies paid taxes.
4. Competitions between companies produce good quality product.
5. As products are available to low price standardizes living of people.


1. Retail Sector will suffer.
2. As the use of advanced technology, latest machines, infrastructure will replace the manpower and then unemployment will again occur.
3. If the reason for allowing FDI is for developing our country but the benefit of this FDI will not reach to the rural area, small villages then how the country will develop.

As once Gandhiji said, "Country will develop if rural areas are developed".

Rate this: +110 -8

Utkarsh said: (Sep 24, 2016)  
Ya, its good, since if the investment is done in our nation the in turn, it is improving the economy of our country, as well as it help our people to get employment with good wages. And apart from this, the relationship of our country with other will also become strong. And if the investing country is the developed nation then it is much precious.

Rate this: +4 -1

Raj S said: (Sep 23, 2016)  
In the comment section various people commenting are confused between retail and manufacturing industry, retail does not necessarily mean manufacturing, thus no technology or superior quality and although the payment package is very attractive and high compared to unorganized retail the area of coverage of a retail store should be considered and thus will not benefit the youth in any ways and would also add upto uneven distribution of income.

Rate this: +3 -1

Raj Sahoo said: (Sep 23, 2016)  
The way I see it, if FDI is allowed in further percentage, foreign companies with huge capitals would go for predatory pricing and thus would put the local Kirana or even organized retail stores out of competition and later on implement their own pricing policy, so, in the long run, it won't benefit us and also cause harm employment in retail sector.

From a consumer point of view for foreign products and big brands like Nike, apple, the prices would reduce as a major part of the price goes to the franchise holders.

Rate this: +1 -1

Aryan Singh said: (Sep 23, 2016)  
Yes, I will also give a hand to it this is important in a nowadays scenario where people want to get things of good quality and for that, they are ready to pay.

With FDI there will be an unsaid pressure on our indigenous company to bring betterment in themselves and thus the benefits will be of our the consumer. For example, with reliance Jio coming up with such low tariff plan other telecoms company's has to lower their plan cost as well thus now user have to give less money (although Jio is not FDI but the principle of Jio will work like that only).

Rate this: +5 -4

Vicky said: (Sep 23, 2016)  
I think it is not good for India. Because all small retailers are faced critical and business slow down.

Many people are unemployed to be increased.

So foreign products easily come to India.

And Indian products sales to be low it reduce GDP.

Rate this: +10 -3

Shivam Antal said: (Sep 23, 2016)  
My perception is that FDI is not good for retailers of India because company from another country has to invest less money to get a profit but retailers of India invest a large amount of money due to currency difference.

Rate this: +4 -0

Sofia said: (Sep 23, 2016)  
Yes, It is good as it provide many job opportunities as well as increase the standard of living.

Rate this: +7 -2

Gokul Khanna P U said: (Sep 23, 2016)  
No, I think there must not be FDI investment in retail sectors of India. I'm not objecting if they are going to invest in manufacturing sectors concerned. But I feel if the scenario of FDI is freed for retailers, then there will be a lot of problems. I wish to state few of them now. First of all the FDI will be huge barriers for the local vendors and retailers. When the FDI invest they can make a very minimum investment and make maximum profits. But in the case of Indian retailers they might have to invest a huge amount to reach the same profit. This is due to currency difference.

The retailers are the major portion of any economy, where maximum GDP can be generated and employment can take place. If FDI comes in they would come with automation, leaving behind the employments. Also, the current retailers will be stubble by the economic pressure.

In any marketing system, the retailer will make maximum profit. If this profit goes to a for the company then this will lead to economic crisis.

But in the case of manufacturing, they generate goods and sell it across the globe. So there will not be much problem. If they come in retailing they may even create favouritism to the international products and be leaving behind the Indian products. I strictly believe this must be avoided.

Rate this: +11 -3

Rahul said: (Sep 22, 2016)  
Hello Everybody,

I will go with "Yes" FDI is good for India, it will definitely create jobs in India which will solve many issues if people will get jobs.

Rate this: +4 -4

Yogi said: (Sep 22, 2016)  
It is obvious if a hosting company investing in our country it directly leads us to a way of development, job creation, hope in economic gain. But if a hosting company takes the loan from destination country for machinery, resources then it will further help in gain.

Rate this: +10 -0

Prathap said: (Sep 22, 2016)  
In my point of view, FDI is good for the economic growth of India. No one will give money to another without any returns in the same way the FDI's will take profits. In each and every work there will be positive and negative. We have to take positive only. We need improvement FDI wants profit.

Rate this: +5 -1

King Mirza said: (Sep 21, 2016)  
According to me, it is good because it may raise in capitalization.

As foreign company came to India so we know can what strategy they should applied or it generates income for India.

Rate this: +4 -2

Santosh Biswal said: (Sep 21, 2016)  
According to me, the foreign direct investment is good for India. It helps in economic growth of India.

Rate this: +8 -3

Babu said: (Sep 21, 2016)  
The Indian unorganised retail sector is one of the major sectors which provide the employment to the middle class of the Indian economy. So there are two possible outcomes of the FDI inflow in retail. One is to increase the unemployment in middle class if the new retail store will be able to deliver more satisfaction among the consumers which further convert into more customer for these foreign retailers. In other words, basically, the profit associated with this customer transfer from unorganised local retail store to organised and fully funded foreign retailers. But if the FDI inflow is allowed with the condition of the employees and most of the management is Indian based, then the unemployment loss to the economy will be less, even still some unemployment will emerge as these will be highly managed & will be required fewer employees to deliver the same services in the economy.

The secondly, these new foreign entrants will make tough for the local retailer to compete in the market. The entry of these big retail giants like Walmart will reduce the independent entrepreneurship nature of these local retail stores. Now Indian people will think more about the saving his/her job in these retail store rather than thinking his own idea and implementing a new business plan.

Rate this: +18 -0

Vivek Saxena said: (Sep 21, 2016)  
I think FDI is not good for India or we say Indian people. FDI increase employment which gives strength to our people but not change our economic level quite more. Our money is directly gives the profit to foreign company. Instead of involving FDI we have another option "Made In India". I think this is more beneficial for us because it provide Strength and also increase our economy. We required First Indian Development (FDI). If we are strong in economy, so many foreign investment company are ready to invest.

Rate this: +23 -4

Deadshot said: (Sep 20, 2016)  
FDI is good for India as it will bring more money into the country and if the big companies investing in India buy directly from the farmers, even they will have a chance to get more money. But one major disadvantage of FDI in retail sector in India will be the rising competition between local retailers and foreign investors. An organized retail sector may be able to cope up with the competition but the unorganized ones will gradually collapse. More number of people will start getting unemployed than the number of employment opportunities provided by the foreign companies. FDI in other sectors such as Information Technology will prove to be more fruitful than in retail sectors.

Rate this: +6 -0

Vnsu Chand said: (Sep 20, 2016)  
Hospitality is big sector who increase the FDI.

However many other sectors are also increasing but generally, hospitality having more opportunity to increase India economy many of foreigner invest in the tourism sector.

Rate this: +6 -4

Archit Sharma said: (Sep 20, 2016)  
The main merit of FDI (Foreign Direct Investment) is that it is kind of a permanent investment in the country compared to FII (Foreign Institutional Investment) {which covers the most part of foreign investment coming in India and is of temporary nature}.

FDI stays in a country for a significant time.

Rate this: +6 -0

Pooja said: (Sep 19, 2016)  
FDI is the investment made by a company by some means like land, factory etc of another company of another country. So, surely FDI will be efficient for hosting country. It will develop the country economically, So according to me, FDI will develop India economically as well as financially. For small companies, FDI provides an opportunity to become more active in international business activities.

Rate this: +9 -5

Shiva Gupta said: (Sep 19, 2016)  
Hello everyone, As most of you told that there are some merits & demerits with FDI, I agree with your discussions, but merits & demerits do not matter a lot. Actually, the main thing where we need to focus is talent.

However we Indians have good talent & we are hard workers too so according to our quality we deserve for the good economy all over the world. This is possible when we will work with foreign companies. So according to my point of view FDI is the must in India.

Rate this: +16 -5

Manish Kalwaniya said: (Sep 17, 2016)  
Hello, everyone, this is Manish Kalwaniya.

As we are discussing FDI in India, and all of you said a lot of things on this and I agree with your statements. FDI have both positive and negative aspects. As we all know that India is still suffering from poverty, unemployment from before many decades and need a lot of investment which can improve our condition economically. If FDI comes in our country it will provide employment which will lead to decrease poverty. Still, we are using old techniques and far away from new technology's if FDI comes in retail sector it will lead to promote technology across the country.

As India is a developing country and need more investment in all sectors.

So FDI is fruitful for our country. But we have to set some rules and regulation for FDI which is good for us.

Rate this: +26 -2

Raghul said: (Sep 17, 2016)  
In my point of view, Foreign Direct Investment has both merits and demerits.


1. A High-class family and middle-class family persons can invest in foreign countries and he has a chance to increase their income and growth.

2. If foreign currency rate increased against Indian currency rate, a person who invested have their profit.


1. A low-class family persons can't invest in foreign countries Because the chances are trapped by the high-class family persons.

2. For the future years, If the foreign currency rate increase against Indian currency rate, I promised that Dr. Abdul Kalam dream will fail.

Rate this: +31 -11

Shikha said: (Sep 17, 2016)  
In my opinion,Any thing which has more positive aspects rather negative is good for our economy. But as one of my friend said that it creates an inbalance in the economy. And the currency goes outside the India. Which is making rich get richer and poor getting poorer, It should not be there.

We should create a self-sufficient economy though not in all aspects but at least in many. Because the condition of people of a particular country matters rather figures on paper.

Rate this: +14 -1

Nilesh said: (Sep 16, 2016)  
Hii all, I support your opinion, but in my point of view, it is good for those filed in witch they one step ahead from as. Not allow FDI in that field in which our people do a good job because it does bad effect on our product. So that it's good for us to FDI but first support our product then go further.

Thank you.

Rate this: +2 -1

Sai Swaroop said: (Sep 16, 2016)  
In my opinion, fdi gives new investments encouraging our country.

Gives new industries inventing increase employment and some drawbacks.

It should remove some instructions must follow.

Increase percapita income and helpful to poor people to increase thier income.

Rate this: +4 -5

Devaram Manideep Reddy said: (Sep 15, 2016)  
Good evening friends, The FDI is good in India because it increases per capita and lot of jobs. So I will support to FDI.

Rate this: +8 -8

Jit said: (Sep 15, 2016)  
As per my point of view, it is good because it will create employment in India. Increase our per capita income.

Rate this: +5 -4

Vishwa said: (Sep 12, 2016)  
Good Day all of you! Thanks for this forum and this interesting topic.

First of all, FDI means a foreign investor invests in the home country.

To be precise, FDI has introduced in almost every sector in India and is definitely a source of humongous revenue. All this being said I wouldn't really shout out a YES for FDI in the retail sector. Yes, I accept it brings in a lot of revenue, brings in more competition for the Indian Retail market and yes it provides the consumers with N number of choices. All this is a layman's view on FDI in retail. Focusing on our economy, we have enough retail products which are made in India and are struggling to be sold because of tough competition with the Foreign. This might or might not have a positive impact on the retailers. As one of my friend's rightly pointed out, these products coming in must be quality checked which is apparently not happening. All these products are insanely cheap with respect to price as well as quality. For a developing economy like our's globalization up to some extent. If it crosses the saturated level, it might lead to an undesirable negative impact on our market. FDI in retail sector needs to be curtailed.

PS: FDI in the retail sector has already started showing up in India.

Rate this: +44 -5

Revati said: (Sep 11, 2016)  
Yes. FDI is definitely good for India as it will not only help in the employment of Indian youth but also will benefit citizens by making various goods available at cheaper rates as it will create competition among various producers.

Rate this: +16 -3

Sanjeet Kumar said: (Sep 11, 2016)  
Hello, Friends, I would like to introduce my thought about FDI in our country so, FDI plays a major role for any country to remove the problem like Poverty, unemployment, and empowerment. So if Investment is done in retail sector it will directly help to remove the basic country's problem. For that government must take the best part in the equal use of FDI investment in the different sector. As we know that our PM is working day and night for eliminating our country's problem. You can see in every month he has a meeting with all the giant player of different countries. So that they can invest in India and it will provide them human resources, and the country will get the benefit of job opportunities.

Rate this: +11 -0

Saurabh Bhatia said: (Sep 10, 2016)  
Hello, My friends.

I respect all your opinions, but in my point of view, FDI has both faces like a coin has always two faces so FDI also has two faces one the good one and one is bad.

The good one:
1- With the FDI in INDIA, the interference of third party dealer between buyer and seller is eliminate which today leads to corruption.
2- Because of a third party they store the huge quantity of food items and sell them in the market at greater prices when they gain large profit rates from customers,this creates a very heavy effect on the pocket of middle-class society.

1- Due to implement of FDI in INDIA our currency go outside rather than circulate in INDIA.
2- Due to low taxes tye FOREIGN companies invest more and gain large profit.
3- Great effect on the middle market.
4- Poor become poorer, rich become richer.
5- Unbalance the current market status in INDIA.

Thank you.

Rate this: +29 -1

Ajith Raja said: (Sep 10, 2016)  
This is actually a good topic to discuss. In my point of view, the FDI has needed some kind of operations like defense, Machineries, etc. These leads to increase in production and also employment and our economic system. Our country has more number of creative thinkers. But due to we do not have sufficient facilities to do this innovative invention. So this FDI helps to reduce the above problem. But we create some strict rules in food, vegetables sectors.

Rate this: +25 -4

Ahsan said: (Sep 10, 2016)  
FDI is good for India as with FDI. As India, the market becomes biggest FDI holder, more than that of China and US in FDI. This will bring new job opportunities, boost make in India, reduce prices of the article and introduce new products to the local public. This will boost Indian economy at large as foreign investors will pay to Govt, only thing is systematic implementation and good feedback system of Govt to check piracy and duplicity and price regulation. It will also boost domestic production as raw material for production will be taken from the local market, so overall a good step in the economical growth and to reduce inflation.

Rate this: +4 -3

Karuna said: (Sep 9, 2016)  
Hello, friends, I respect all your opinion. But in my point of view FDI is the very big boon to the developing country, why because, development or growth means it should be equal in all the parts of the body. For example, our right hand grows every day but our left hand does not mean we have the defects in our body. Like that any development to the country should be equal i.e. in all sectors (in agriculture also). But what the MNC doing is investing more only on technology, not on the agriculture. So it clearly shows that they were investing money to gain their profit, not for the development of the country.

Thank you.

Rate this: +56 -8

Abdul Kadher said: (Sep 9, 2016)  
But the most important thing is we are all in the place of employees for owners of other country bosses, I accept the view to encounter the jobless situation but it does not give long term solution. Nowadays fully automated process are held by the industries. It's grown day by day so we see our developing owners of INDIA and taking them to world class marketing by providing various scheme after that we have also reduced the percentage of job seekers and sustain the INDIAN economy with our people's tax.

Rate this: +5 -1

Kb said: (Sep 7, 2016)  
Yes, obviously. But we should keep FDI away from the small scale markets, such as fruits market, vegetable market etc. Because FDI can affect these very badly which is not good for our country that our own poor Indian people will face great losses.

Rate this: +12 -3

Aman Gupta said: (Sep 7, 2016)  
Hello everyone,

FDI in the retail sector with certain constraints can be a big boon for a nation like India which we can easily understand the following points.

1) Establishment of foreign companies is Indian market will generate huge tax revenue which can be utilized in other sectors such as building infrastructure, defense etc.

2) New job opportunities will be created which will assist India in fighting unemployment.

3) The customer will be provided with a variety of products at a better price.

4) The country will be provided with the latest technology.

Although FDI in the retail sector is beneficial but certain precautions need to be taken.

1) A proper quality check of the foreign products so that the country may not become a dumping ground for the poor quality products. For instance, China has flooded the Indian market by cheap technology mobile.

2) FDI in retail sectors must be imposed with a certain limit so that it may not become a threat to the livelihood of small vendors.

Rate this: +64 -6

Deepak Nandi said: (Sep 6, 2016)  
Yes, it is good for India. Definitely FDI plays crucial role in India economy. It provides employment to all the skilled and non-skilled person. It will make our currency more valuable in the world market.

As we know, all wants mobile phone all wants cars all of us want a good life style.

FDI will support our country so that unemployment will be decreased. It will make our India as developed country. We will feel more proud of the nation.

Rate this: +2 -18

Aamir Khan said: (Sep 6, 2016)  
Talking about the FDI in retail sector in India has certain pros and cons but as per my opinion is concerned FDI in retail sector is good because it will certainly give advantage to the customer as customer will be able to buy the product at lower price because the middlemen will be eliminated and certainly there would be direct linkage between Retailer and customer. The small retailers would be overtaken by big retail chains and the retailer would contribute in the economy thus to boost growth whereas unorganized retailer doesn't pay taxes largely so FDI in retail sector will enhance the growth at much faster pace.

Rate this: +9 -10

Sakina said: (Sep 5, 2016)  

In my view, FDI should not be in the retail sector. Because of this small retailers will not able to survive. It will market to rich people. And because of this rich will become richer and poor will become poorer.

Moreover, foreign companies can easily invest with almost negligible tax for them as Indian currency is degrading day by day. Hence they can easily invest and can make a huge profit. Due to this, money can easily go abroad rather than India.

One more point is that if FDI is there in India then we will not make our own product. We can easily become a slave. We should be the master, not a slave.

That's all.

Thank you.

Rate this: +32 -4

Manogna said: (Sep 3, 2016)  

It is actually boon for farmers since they can get what they have invested. Since in India it is an indirect method, normally the farmers get the money from sellers, not from customers. So in my point it is really a boon to the farmers.

Rate this: +5 -8

Neelam said: (Sep 3, 2016)  
As the name suggest Foreign direct investment is investing money in a foreign land and especially in one sector. We all know that this is the era of globalization and if a foreign company is investing in India then it would be a proud thing to say because they find our place suitable for investing their money. FDI is very much necessary in a developing country like India as it directly helps in the development of the country. They increase our Forex capacity by investing their currency in India and also they enhanced the capital of a company in which it invests. Moreover, it brings latest technologies with them hence making a country more technology oriented. FDI bring world class competition with them which helps the consumers to get the best product at best price. FDI helps a business to flourish and hence generate more employment in the country.

Rate this: +6 -2

Malar said: (Sep 3, 2016)  
Yes. FDI supports in our country lot they increased import as well as export and then the value of our currency will be increased, our country business mans will be motivated to participate FDI. The quality of the commodities will increase. In our country funding, money is taken from taxes it will some funds coming from FDI.

Rate this: +2 -14

Vijay Dodiya said: (Sep 2, 2016)  
According to me and simple way, FDI is better approach for the expensive projects which have some criteria which improve directly or indirectly profitable for Indian people as much well as an environment of our country.

Rate this: +7 -8

Praveen Patel said: (Sep 1, 2016)  
FDI in any sector would be introduced to enhance the quality from that sector and to promote competition among players of that field. In the case of the retail sector, it will do the same but if we consider small vendors it will affect their business adversely.

For this, we can limit the extent of intrusion into the products, like for a product which is selling commercially FDI would be beneficial.

Rate this: +12 -3

Pandya said: (Sep 1, 2016)  
I think foreign investment in the Indian market will be good for a developing country like India as it will create huge job opportunities and bring up new technologies. Due to new technology and competence in market product quality will increase and prices will go down. It is to be noted that FDI should be limited to IT, DEFENCE, Telecom, manufacturing etc where we require technology.


Rate this: +17 -2

Suchita said: (Aug 31, 2016)  
In my opinion, FDI should be allowed in our country but it should be restricted to some particular sectors. FDI will bring new investment, new technology, new business to our country and also it will help in economic development of our country and also it will increase the quality of our life. But FDI should not be allowed in sectors such as vegetable, fruit marketing, where most of the people doing business are poor people and their source of income will get affected if FDI is allowed in these sectors. Instead, FDI should be allowed in industries, technology and IT sectors, space so that lot of research and development can be done in these sectors and we will get high-quality products at affordable rate.

Rate this: +78 -7

Hari said: (Aug 31, 2016)  
In my opinion, this is good for the limited sector. Like industries, technology, ITt sector they provide more and more employment so our people work there and earn money and develop their idea because we all be a part of that new technology but FDI should not allow to farmer sector such sector people dependent small business they are affected.

Rate this: +5 -5

Manvender said: (Aug 30, 2016)  
Yes, FDI in the retail sector is good for India.

FDI will bring a lot of investment in India, this will useful for building the infrastructure that our country needs. Sufficient amount of cold storage facilities can be built which will help reducing food wastage. This reduced wastage will also help in keeping prices in check. It will lead to the generation of a lot of jobs which will help our society economically.

It will also help our farmers get a decent price for their growth.

Rate this: +8 -8

Mohit said: (Aug 30, 2016)  
FDI is very important for a nation to make its health sound in every sphere. But with care, because in some field it boosts the economy. In retail, it is good for only outsiders. It will ruin the business for locals and that will ultimately reach in the time of east India rule and spread of their business that carry by British govt. It will make the Indian class difficult to earn their bread. So FDI in retail should be under check.

Rate this: +15 -6

Is Foreign Direct Investment (FDI) in retail sector good for India?

Name *:

Email   : (optional)

» Your comments will be displayed only after manual approval.

Have a question?

Ask your question now !

Create your own website ?

Web Hosting Services in India