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

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Kalyan Chowdary said: (Sun, Mar 15, 2015 05:43:30 PM)    
In my opinion fdi allowing into India is completely disadvantageous foreign companies will only concentrate on their profits they do not take part in developing our Indian economy they will exploit our natural resources by manufacturing activities.

In India small retailers will suffer and most of the retailers are middle class families they will loss their earnings they cannot have huge resources to develop their business.

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Kalpesh said: (Mon, Mar 9, 2015 09:31:25 AM)    
Hi Friends,

According to me FDI should be allowed in India.

Main reasons are,

Firstly it will eliminate the "agents/middle mans" between the farmers and the consumers which will benefit not only farmers but also the consumers. It will create infrastructure, ware houses. So good products will be available at lower rates to the consumers.

FDI will increase foreign reserves, which will increase our GDP, means our growth rate will increase, means people can spend more. At the end, all of this will positively impact every one of us.

It will increase employment among not only of unskilled but also skilled workers. Yes, there are negative effects are also there like effect on small retailers, ex-poser to the international markets.

Eventually money is also going out of India. But with some regulations and controls these effects can be minimized for the beneficiary of our economy.

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Deepa said: (Wed, Feb 25, 2015 08:38:37 PM)    
Hi friends.

I think Foreign Direct Investment (FDI) means Cross broader transaction in one economy and advantages and disadvantages are there.

Advantages : If the FDI will come we can get huge employment and we are getting new technology, so our economy will be high. Main the FDI form retail sector, framers are getting more profits because of no Intermediaries and they are getting right cost form the product and domestic company will compete with national wise.

Disadvantages : Small scale industries are not able to comet with large scale industries, and the domestic company may suffer.

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Ansh said: (Wed, Feb 18, 2015 01:46:39 AM)    
Advantages of FDI in retail.

India's retail industry is one of the biggest around the world when it comes to the privately owned ones. The industry has seen some major restructuring thanks to the FDI structure becoming more liberal than before. The benefits of FDI in retail, as per experts, carry greater weight-age than the cost related implications. With FDI in retail, operations in distribution and production cycles are expected to become better.

Owing to factors such as economic operations, the cost of production facilities will come down as well. This will mean a greater choice of products at lesser and justifiable prices for the customers. As a result of FDI, companies will be able to bring in technology and skills from other countries and this will help in infrastructural development of India. This will also help in creating more value for money for the buyers.

After FDI in retail, it is possible to set up a properly organised chain of retail stores as the capital to do is readily available. The investment can be regarded as a long term one as the physical capital put into a domestic company is not liquidated easily. This is its main difference from equity capital.

ICRIER had also predicted that if FDI in retail was introduced in India during 2011-12, the Indian economy could have grown by 13 per cent, the unorganised sector could have seen a 10 per cent growth and the organised sector could have increased by 45 per cent.

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Lakshu said: (Sun, Feb 15, 2015 10:57:47 PM)    
According to me, FDI in retail sector is good for the country.

The positive side would be increase in employment opportunities, technology upgrade, infrastructure facilities, low spending of money, tax benefit for the government.

Farmers were also benefited as their products will be sold at reasonable prices. It will also deepen the economic relationship between INDIA and foreign countries.

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Shubham said: (Fri, Feb 13, 2015 10:40:49 PM)    
In my opinion, FDI is very important in developing country like INDIA. FDI help to increase revenue, tax collection, creating new job, farmer get to beneficial price her crop. Exchange modern technology, increasing export, improve Forex position, helping rural infrastructure improving.

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Partho Mukherjee said: (Sun, Feb 1, 2015 07:26:24 PM)    
In FDI there are four participants:

Companies point of view:

India is developing country so they will get good share for their investment as India is ranked 3rd in PPP. Now customers point of view: customer will get more option to choose and at cheap rate due to competition without compromising the quality of the product.

Farmers point of view:

They will get good infrastructure (cold storage's, ware houses) , good supply chain management, good income for their farm produce, single procurement source.

Government point of view:

Good foreign exchange reserve for India, it will increase employment rate, technology transfer will help to learn their technique and efficiency of making good product at less cost. So I think FDI is good for India with some government Interventions.

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Sachin said: (Sat, Jan 31, 2015 12:52:57 PM)    
Isn't the people are opposing FDI like how some of the Political parties and people were opposing computerization in India in early 80's and now the same people can't stop themselves praising computerization in India, it's not just created jobs also modernize our economy, Now India is one of the country whose IT products are having good margin in overall GDP. Now without giving a chance to FDI how can we be so unrealistic and lost that it will only hurt to our economy and create unemployment.

We all know the quality of product available in Indian Markets and their superior prices, with these kind of products and problem how long we will survive. Another thing the retailers are crying for everything, now people have moved their choices on online shopping because of the cheap prices as most of the retail complaints do not own any storage place so no rent they are paying for storage, so they are able to see their products in cheap price. Our retails should learn to compete.

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Karthik S said: (Tue, Jan 20, 2015 07:40:03 AM)    
Hi friends,

According to me FDI Helps in transfer of new technologies, management skills, intellectual properties. FDI also can increases competition within the local market and this brings higher efficiency.

Although Foreign Direct Investment in Retail will help in providing employment and developing our country but this will create a problem for small Indian retailers to exist in the market as this will increase the competition for them. For small Indian retailers it will become hard to compete with the global retail chains.

Retailing in India accounts for 14 to 15 percentage of GDP. Allowing FDI will benefit the consumer by lowering the price of the commodity and eliminating the middlemen but definitely it will create unemployment for semi-skilled personnel.

As global retail chains will prefer to hire trained and skilled personnel. If Govt, in spite of many drawbacks, still want FDI in retail, it should have to create rules and regulations to keep control and maintain the growth level in India. Govt need to consider all the facts regarding FDI positive as well as negative before taking any step.

FDI may benefit in short term by providing employment and increasing the competition to bring out the best in all the respective areas but in the long term it will benefit the global chains only.

They will use our India for its own development. Instead of allowing FDI we should develop our Indian retailers to compete with global retailers by providing different growth opportunities.

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Bharath Hn said: (Thu, Jan 15, 2015 09:54:34 PM)    
Hi guys.

According to me FDI is not at all required for India & it also not much profitable. By taking the investment, India will never increase the economic growth & it will be in constant for taking investment forever. Instead of this, as we know our population is around 1.22 billions, so if we collect a single rupee from every 1 in our country, definitely India can invest for other country & our economic growth will be in top.

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Preeti said: (Sat, Jan 10, 2015 01:01:58 PM)    
My point of view said, "FDI is not beneficial for India" because India is developing country and foreign investors invest in India for their brands not to develop our country but for their sake. I give you a daily base.

EXAMPLE: Chinese toys are more cheaper than Indian toys and mostly people want to buy those goods which are cheaper. Because they do not have enough money. Due to this India can't develop our economy.

Because we people prefer foreign things due to MODERNIZATION. So it depends on we people that what we have to opt for our economy. Domino, pizza hut, doughnut these companies will make profit and our Indian salesman are in huge loss. And our Indian economy are not rising.

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Nellaimathivel said: (Fri, Jan 9, 2015 08:16:12 PM)    
In my opinion I feel that FDI in retail will give negative impact more than that of positive while by FDI in retail will give jobs and may give infrastructure to farmers but certainly our economy will suffered as our currency will fall further and oil prices will rise and that will impact our economy.

While FDI in retail they invest in India to earn not to develop India so there is no possibility for real infrastructure development in India guys just think while foreign manufacturing companies in India make our economy in trouble by taking away our earning today most of our spending goes to foreign country manufacture even now our government gives voice for make in India.

I do not know why they allow FDI retail if government feels make in India will make India strong if retail by Indian will make India even stronger.

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Rahul said: (Wed, Jan 7, 2015 12:45:06 AM)    
Retailing is one of the pillars of Indian economy and accounts for about 12-15 percent of GDP. We all know that India economy is not enough to boost retailing i.e.investors and government don't have surplus capital so I think we can get over this capital aspect by introducing FDI. Moreover it will also increase Indian retailing system knowledge by integrating globally.

Now if we see the policies made up by the government for FDI we see that it can also benefits the farmers as half the amount of capital invested by brands are to be put for back end infrastructure which will aid the farmer economy as it will lower the loss of products by preventing it from getting perished and thereby the farmers will not be compelled to sell these perishable items at whatever price they get.

Beside that the farmers will not have to depend on middlemen for there items to be sold. Because of which they get less money in compared to what they would have got if sold directly. This will also integrate farmer consumer relationship.

Again we all will get fresh vegetables due to FDI companies investment in back end infrastructure plus we will have better and more jobs directly, indirectly and by induced effects.

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Ramesh Kumar said: (Sat, Jan 3, 2015 11:14:01 PM)    
FDI in retail sector should be negligible, because if FDI in this segment will be increased than effect of FDI will fall on our currency. It will make our currency weak against other currencies.

And a huge part of cash flow will be swept out by the MNC's. Our country's part of profit will not be distributed in our country. Our spending will not work for our economy.

Our small shopkeeper will become unemployed. And many more it should be restricted to a certain level otherwise we will have to do agitation in future.

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Mehran said: (Wed, Dec 24, 2014 02:58:49 AM)    
FDI in retail sector is not much socially profitable project for India. Though it will create employment and increase standard of living but it will create chance of monopoly and other effects.

The foreign companies can exploit farmers by acquiring their lands on the note of productivity and development.

Indian middle class families are in habitual habit of taking daily uses products and other house hold items on credit basis from local kiranaa walas. They will not get this facilities from FDI's retail shops.

Instead of FDI in retail sector FDI should come in airlines industry. This will bring prosperity in the industry. Many Indian airlines companies like kingfisher had faced financial crisis. FDI can overcome with this.

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Diksha said: (Sat, Dec 13, 2014 02:50:51 PM)    
According to me FDI is a great boon for our country. It's assisting us in developing our country and thus giving us access to a newer technology. FDI helps in providing employment eradicating poverty. FDI was launched in 1991 and after the introduction of FDI it has not only helped in improving our country state but also assisted in changing the perception of individual.

People are not only liking foreign goods but also following their tradition. Earlier women's were forced to wear DUPATTAS and cover their faces. But now things has changed. So in the end I will like to wrap up by saying FDI is good for developing country.

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Bhaskar said: (Thu, Dec 11, 2014 09:59:51 AM)    
Hi friends,

FDI it is more helpful to our country economically development. If developing and backward countries FDI gives a support and opportunity to develop economically. One of the main important benefit is employment. Yes unemployment is greatest weakness of developing countries. So more opportunities are there in Foreign Direct Investments. Our country GDP also increased in my point of view.

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Kamlesh Kumar said: (Thu, Dec 4, 2014 11:26:13 AM)    
Dear friend,

I think Foreign Direct Investment (FDI) has appeared to be the most important source of external flow of resources to the developing countries and has become an integral part of capital formation despite of their small share in global distribution of FDI. This paper discusses the impact of FDI on the economy of developing countries and its overall significance in the economy of developing countries and after the Global Financial meltdown FDI are searching for more lucrative investment opportunities and developing economies around the world provide the very good investment options for FDI.

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Rahul Rai said: (Fri, Nov 28, 2014 06:57:39 PM)    
Hi Friend.

I am in favor with FOREIGN DIRECT INVESTMENT (FDI). FDI refer to investment in business or production. FDI in retail sector will provide the employment to literate as well as illiterate people, thus it eliminate the poverty and lead to a better life style to the citizen of the nation.

New technology comes with foreign direct investment, that result in consumer purchase goods[genuine, branded] at cheaper cost.

It will increase the gross domestic product (GDP) of India, since the GDP is also depend on per capital income of the country. Before 1990's citizen of the India were not aware to FDI. That result in high inflation and low GDP.

China has the largest country for FDI. Since both country ware in the same phase before few years ago. But now due to FDI China's GDP and inflation is much better than India. To avoid GLOBAL RISK India should make a strict policy for the foreign direct investment. And FDI is allowed over a short period of time.

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Vijay said: (Fri, Nov 21, 2014 12:02:20 AM)    
We are living in the age of globalization and FDI may be considered as a powerful tool of Economic growth. It can be shown by following data.

1. Firstly, It will increase Employment to local people.

2. Secondly, It will increase productivity due to competition with local kirana shop.

3. Third one is, New technology will be introduced in our country which will uplift our lifestyle.

4. China is the world largest destination of FDI which resulted fastest economic growth.

I think we should be hopeful whether being pessimistic.

GDP = consumption + net investment + govt spending + export-import where net investment is domestic investment + foreign investment.

So it will also increase our GDP.

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Bassam Alkhateb said: (Mon, Nov 17, 2014 02:09:53 AM)    
India is not behind this global race of attracting foreign investment. India emerged as an attractive destination in services but has failed to evolve a manufacturing hub which has greater economic benefit.

Foreign investments are one of the important sources of financing the economic growth, but not a key to eliminate poverty, unemployment and other economic problems. India needs a big investment to reach the goals of vision 20-20. Policy makers need to ensure vision and stability in policy making along with complete long term growth strategy. Removing FDI barriers and reducing unclear regulations will attract more private investments will help boost India's economic growth.

India is currently the 18th largest export market for US good, yet the US is facing a number of trade barriers in the telecommunication sector.


1. Funding: Starting a plan to phase-out priority lending.

2. Financial sector: promoting new entry for private Banks.

3. Tariffs: tariffs & fees systems are complex and vary at the state, central levels & by ministry.

4. Import processes: India didn't sign to the WTO (World Trade Organization) Government Procurement Agreement.

5. Government procurement: barriers in major services industries like insurance, banking, accounting, legal services, telecommunications, distribution services, postal and express delivery services.

6. Export supports: India's customs valuation policies do not reflect actual transaction values and raise the cost of exporting beyond realistic tariff rates.

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Abhishek Kannoujia said: (Sat, Nov 15, 2014 11:48:09 PM)    
Hello friend, from my point of view FDI is good for middleman consumer and it gives many advantages to the farmer. But FDI in defence is not a good decision from my perception because 49% share of foreign company means compromising with own's country security.

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Saumya Srivastava said: (Wed, Nov 12, 2014 11:00:02 PM)    
I take FDI in a positive way. India is one of the developing countries and If Developed countries of world will invest in our economy. It will be beneficial for us in many ways, Focusing on Retail sector which is one of the pillar of india's economic growth and contribute around 15% of GDP.

FDI will help consumer to get all quality product under one roof with huge choices of each product, neither like general Retail shops where consumer doesn't get choice nor quality. Shopkeepers does not fix any particular price for the product they take different price from different consumer for the same.

FDI will provide capital for setting up retail chain which is a LONG TERM INVESTMENT and will introduce us with advance infrastructure. Even job opportunity will be available as retail shop will be set up in India at a large number. And help to lower India current account deficit and will boost rupee against U.S dollar.

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Sridhar said: (Sun, Nov 9, 2014 08:52:05 AM)    
Hello everyone, most of people said FDI bad for our country. But before that we think about e-retailers, they also do the same job, such as bought goods for low price and sell it. Most of our own country manufactures, distributors, retailers affected.

So first we need some government restrictions in e-commerce, then we discuss about FDI.

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Shanawaz said: (Sat, Nov 8, 2014 08:28:37 PM)    
Dear friends.

If FDI comes in India. Indian sector will come down and still makes India to be in developing country and not in developed country.

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Nikita said: (Sat, Nov 8, 2014 12:11:11 PM)    
As for my perception, FDI will good for retail sector. As FDI introduced to India, there will be many options and choices for the customers to select goods at low prices. If the government will apply FDI to India, our countries GDP will surely increase, as the foreign company will invest in India and they have to pay different types of taxes like service tax, sales tax, corporate tax etc, the fund of Indian government will increase.

We know that India is a developing country, and a developing country's biggest problem is unemployment, if the foreign company will invest in India and open their malls, they will give job opportunities to both skilled and non skilled people.

If we will talk about the small retailers, let me tell you that according to FIPB rules that is foreign investment promotion board, the foreign company can only invest in those cities where's population is more than 10 lakhs, and as we know that in India there are only 100-200 cities are there where's population is more than 10 lakhs.

FDI will improve India's infrastructure also, as the rule of FIPB says that every foreign companies has to invest its 30% on their infrastructure. At last I can say that in my opinion, FDI is good for Indian retail market.

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Vatsal Srivastav said: (Sat, Nov 8, 2014 12:11:09 PM)    
The main thing is the citizens of India, they are attracted to foreign goods, other countries like China, Japan, are not so much influenced by it. We should take pride in our culture, not to be attracted by foreign goods.

Our countries position will only go down by this. We depend on FDI as we are sure of their quality, why not this for Indian retailers? I think the new ministers should take step, not like the old congress. We should think of Indian employment also.

If we keep promoting FDI, hardly any job vacancies will be there, and more more people will try to go to foreign countries for jobs which will effect India's status.

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Ashish Sahu said: (Sat, Nov 8, 2014 12:37:31 AM)    

I think FDI must be introduced every person who is participating in this discussion must note that you can't achieve perfection and in my dictionary perfection is boring getting better is where all the fun. We have to introduce many such governmental events for proper growth rate.

I know this may not lead in the favor for certain category of farmers like cotton and silk production farmers but on the other hand it also give them a better returns like a agricultural farmers may gain profit from this.

People gave me many reasons to use cotton products, Indian products but simply how many of you use laptops saying made in INDIA or T shirts telling made in Bihar.

We simply can't use many Indian products because we can't give our pleasures just to for the sake some farmers. This is bitter truth so accept the truth and move on.

It has many advantages.

After certain period of time India will be the largest populated country which leads to unemployment FDI generates a huge employment.

So simply accept the FDI and move on man.

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Shivani said: (Thu, Nov 6, 2014 10:38:01 PM)    
According to my perception, FDI should not entertain because, India want to be developed not remain to be as a developing country.

If India wants to give the competition to the other nation, Indian government should restrict the FDI and give opportunities to the Indian retailers that they in partnership do the business and provide goods and services to the customers at affordable price by reducing the cost of production and export more and import less and try to increase the employment by hiring right people for the right job and for that focus to increase literacy by providing proper education without without discriminate the rich and the poor which will lead towards the developed nation.

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Ravi Srivastava said: (Wed, Oct 29, 2014 11:53:53 PM)    
Hi everyone.

I am Ravi Srivastava,

As for my point of view, yes FDI will be good in retail sector. As foreign investment comes in India there will be more choice for a customer to select good at appropriate price also, besides there will be a competition with local retailers so they will also improve their quality.

FDI will also create job. There is more likely chance surge in GDP if FDI comes. Overall there will be increase in economic development.

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Nisha Pandey said: (Wed, Oct 29, 2014 12:58:40 PM)    
Dear friends,

Only 7% organised retail store in Indian and rest of unorganized. FDI in retail is not good for that unorganized store so my point of view, government should not give permission of FDI in retail. It should be permission on that sectors where we depend on other country like deference sectors. FDI may be reason of unemployment of 93% unorganized retail.

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Santhosh said: (Wed, Oct 29, 2014 11:41:12 AM)    
Why can't they support and encourage small and medium based industries rather than supporting FDI's for employment and improvement in GDP... BTW, if govt encourage SMB's, they can go into international markets as Brands rather than buying other brands.

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Shyam said: (Sun, Oct 26, 2014 06:14:35 PM)    
FDI means foreign direct investment. So, if foreigners want to invest in our country in retail sector. They should take our government permission. If our government allow to FDI our country GDP & employment opportunities also improve. Also all branded things are available in less cost, monopoly market also terminate. Because of this all reasons our government should allow FDI in Indian companies.

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Pranav Nanda said: (Tue, Oct 14, 2014 03:41:05 PM)    
Hello everyone.

According to me FDI should be allowed in retail as, it will be beneficial to the farmers, they would get a fair price of their product. Proper facility would be made for collection from various farms.

And the customers even may be benefited as they would get goods at lower cost, various International brands would be available in market.

GDP of country would eventually increase if proper implementation is made for foreign investment. Even it could help to keep check on inflation.

Hence in my views FDI should be allowed with proper laws.

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Shruti said: (Sun, Oct 12, 2014 11:07:19 AM)    
From my point of view FDI in retail sector is good to some extent but its not that our country should totally rely on FDI. Its true that it creates job opportunities which helps in coming out of the problems of unemployment which is a root cause of poverty in a developing country like India. Also it provides a better choice to the consumers to purchase goods of high quality and of well known brands. It approves no harm to the health of the consumers. Further FDI gives a tough competition because of which the local traders become reluctant to produce and sell goods without any fraudulent act otherwise they will be thrown out of the competition. It also helps in increasing the per capital income of the country. But further I also want to keep my point that if there will be a total dependence of the retail sector on FDI it will harm the local traders as they don't have enough capital to invest a large amount in the business.

So overall through my points of view FDI should be entertained but its not be done that an economy should totally depend on FDI. It should make its own place in the market to remain in the competition and to make the country from developing to developed.

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Amit Vashist said: (Fri, Oct 10, 2014 07:15:38 PM)    
Friends good evening,

From my point of view FDI in retail is good for developing country like India.

FDI will remove the middle man concept and bring common man and poor more close to the producers.

Definitely this is going to helpful in lowering the rates of essential commodities needed for survival, as India is the home of people mostly belongs to middle class families, poor also constitute more than one fourth of the total population.

Secondly, products and commodities available through big retail stores will be of good quality and again this is going to benefit the ultimate consumers.

Also these stores are going to give stiff competition to the existing traders and they also have to improve their quality.

As for as wealth flow is concern, govt can manage the same by making rules and by avoiding 100% FDI.

Control must be in hand of govt.

Location of retail store is also an important decision which must be kept in mind.

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Nitin Bhadoria said: (Mon, Oct 6, 2014 08:18:57 PM)    
At my thought, FDI is not compulsory all state and long terms because all Indian state condition is not same. FDI is best for farmers, our country is mostly depend on the agriculture, every year huge amount of food product are wastage because of the lake of the cooled store and our country food chain very bad and farmers deal direct in the multi brand store and will be take direct benefit to the farmers.

But this stores are direct impact on the small retailers and create competition in the market, then small retailers are very difficulte to survive in Indian market for example foreign country France not permitted wall mart to set up stores in the market whereas Germany.

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Vivek Sherawat said: (Fri, Oct 3, 2014 11:32:28 PM)    
Hi there! There are both good and bad effect of FDI. But it can be boon to the India if government put some rules on this. It should be allowed in the India but only for some limited period time until Indian industries could compete them. By looking forward we should think about PM Modi slogan "make in India". People should think of being job creator rather than find a job. PM Modi's vision of creative India can be fulfilled if most people will think of being job creator.

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Priyadarshi Raj said: (Fri, Sep 26, 2014 07:48:25 AM)    
Well I think if FDI is introduced then it will become inevitable for small retailers to live their livelihood as we can see even in america small retailers face very tough competition and find it difficult to survive and even President Obama used to go to the domestic shop along with her daughters to promote the small retail shops once in week. So one can imagine the condition of our retailers.

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Hemanth said: (Thu, Sep 25, 2014 10:36:59 PM)    
Many people who are against FDI have spoken about bringing back the black money from Swiss bank. But lets talk about an event which could certainly be done. I think bringing back the black money us just a dream and nothing more than that.

So we have to search for alternative which could solve many of our problems.

Certainly FDI is one among it. Many Indians are not willing to take risks. That is the main reason why we could not produce more enterprises.

So certainty we have ti search foe alternative. And surely FDIC is one among them for no doubt.


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Pawan Singh said: (Sat, Sep 20, 2014 12:30:52 PM)    
As I have read the all ideas which are given by my friends, the most of them are saying that FDI should be allowed in our country and given many valid reasons like High inflation rate, unstable economic, low value of rupees against USD, Unemployment, Low standard of living, improper price of commodity in retail sector etc. All these problems can be improve by FDI. Most important reason according to me is Unemployment, this is root cause of all problems. If a person is unemployment means he has nothing to invest consequences are consumption will be low - production will decrease(also employment decrease) results GDP of country decreases. GDP is directly connected with economic of country. As for improving GDP, Government of India has started many schemes like MGNREGA etc But FDI can rapidly improve the unemployment.

Many friends saying that FDI should not be allowed reasons are given If FDI invests for long time means they will make large rupees and it may be dangerous if they change all these rupees in their own currency may be dangerous.

After Healthy discussion I came to a point that FDI should be allowed for some time with proper terms and conditions which should be in favor of Indian citizens.

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Swapnil Wakekar said: (Mon, Sep 15, 2014 09:16:10 AM)    
Yes, FDI can improve our economy, but for sustainable growth of our economy India should not entertain liaise-faire type of FDI. Currently FDI invest in the areas where they get excessively high return. They neglect areas like oil production, power generation, and other priority areas. This sectors had made solid contribution in india's growing economy.

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Tashu said: (Sat, Sep 6, 2014 01:18:16 PM)    
Hello Friends,

According to my point of view FDI should be allowed in India as India is a developing country and has quite weak economic growth rate. I would like to quote some of the advantages of allowing FDI in retail sector:

One of the major problem that our country is facing at present is inflation, by introducing FDI we can decrease our inflation rate. As if we consider the old statistics. Before 90's FDI was not allowed in India and at that time inflation rate was very high economic growth was too low and many other problems but as soon as FDI came into effect after 91 our inflation rate gradually decreased from 17% to 7% in the year 95 and GDP increased from 1.7% to 5%.

On the other hand, it will create more job opportunities, which will be acting as a key growth driver of the organized retail sector in India.

Customers will have access to greater variety of international quality branded goods.

Farmers will get better prices for their for their products through the improvement of value added food chain.

There will be increase in the disposable income and customer aspiration.

Customers will get a better product at cheaper price, so consumers get value for this money.

So, In the end I would like to wrap up by saying that since now everything is becoming globalised FDI is very important and instead of not being in the favour of this we should rather boost it up.

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Ulta Chashmah said: (Fri, Sep 5, 2014 10:33:37 AM)    
Hi friends,

While I agree that FDI will benefit our back-end infrastructure and provide the much needed capital to develop cold-storage facilities, communication and transportation infrastructure, I would like to point out some areas of concern.

1. As stated by fellow participants, keeping money in the local economy is of prime importance. Large Corporations increasing remit a large part of their profits to offshore centres.

2. It has been reported that big wholesale firms impose impossible terms on the suppliers, who slowly cease to be profitable.

3. A person visiting a walmart store is going to go once a month and buy in bulk. That means he/she will invariably need personal vehicle. So it may not be a surprise to see more vehicles on the roads adding to the ever growing problem of congestion.

4. To my mind encouraging pvt investment in the form of PPP to build up our supply infrastructure along with reducing red tape, and we can solve this without a Walmart or a Tesco or any other.

Rate this:   +4   -11

Hemant said: (Mon, Sep 1, 2014 12:19:53 AM)    
The term FDI refers to investment either in business or production by the people of other to your country. As far as FDI concerned in India it has both advantages and disadvantages. As we all know India is a developing country so allowing investment in our country will improve economy, employability and infrastructure. It will strengthen Indian economy on the map of world economy. But there are also some serious consequences.

Of FDI which will result in destruction of local market because there product and technologies are more cheaper and reliable then ours. So government should make right kind of policies so that even if there is global slowdown our economy remain unaffected.

Rate this:   +46   -4

Vivek Kumar Shaw said: (Sun, Aug 31, 2014 08:25:51 PM)    
Hello everybody,

Much has been talked about the fdi in the retail sector especially after the approval of 100% grant of fdi in single brand retail sector. As few of the people mentioned about the merits and demerits of the fdi in the retail sector but one the most important question is that what will happen to the domestic market players ? no doubt technology transfer will take place due to fdi, skilled labour will get jobs but what about the unskilled labours who will be completely out of favour due to this and India is home to largest unskilled labour force of the world, second thing is about the independence of the farmers will they be able to produce the food grains they expertise in or they will be manouvered by the fdi companies. I am against the fdi but to the extent to which it should penetrate in the Indian market keeping the domestic market alive and keeping the dollar inflows too.

Rate this:   +17   -4

Bunny said: (Fri, Aug 29, 2014 10:01:25 PM)    
Hello friends.

I would like to initiate the gd by saying that like everything in this world has its pros and cons means negative or positive effect like this fdi in retail is also not spared from these effects, however being an Indian we all know that our country is still a developing one and from 1947 till now we are unable to find any way to make it a developed one but that as old axiom says hope for the best. Mere just hoping can't solve our problem efforts should be there to change the things.

We should welcome fdi in retail as its infusion in the Indian homelands can help in reviving our drowning economy.

Infusion of foreign currency is always considered good for any country but under controlled conditions. With fdi in retail middlemen will surely loose their shining status, and producers maintains direct link with the consumers. Employment infrastructure technology, standard of living, gdp, national income will surely improve. Resources will be available at cheaper prices like said it has disadvantages too ít may expose our economy at global risk, and definitely increased competition will drastically effect the small retailers. Or these companies can misuse govts predefined policies.

To conclude this gd govt should frame such policies which results in boosting domestic sector and should take strict action against those companies who will take undue advantages of farmers and includes in numerous malpractices.

Rate this:   +12   -2

Rakesh Soni said: (Tue, Aug 26, 2014 07:49:37 AM)    
The question, of course, always needs to be asked: why should there be regulations on foreign ownership, anyway - especially between one sector and another? If FDI can galvanise one sector, say retail, why should it be restricted in another? The most coherent answer is to ensure that there are safeguards for reasons of national security.

Whatever steps the government takes to liberalise FDI, it should always allow itself the option to intervene on questions of security. Legitimate questions could be asked, for example, as to whether India's entire telecommunications backbone should be built by providers from a single foreign country.

This would lead to an unacceptable degree of vulnerability in a crucial component of India's economy, and one that is susceptible to remote attacks, too. These sectoral interventions, however, should be chosen judiciously, and not at random; the default should always be to attract investment that benefits consumers and broadens the market.

Rate this:   +8   -3

Smriti said: (Fri, Aug 22, 2014 05:43:29 PM)    
Every thing has its pros and cons. Similarly for FDI it has its both negative and positive sides. The positive side is opening FDI in retail sector will definitely helps in increasing the flow of dollars in India which ultimately helps in decreasing the current account deficit. Employment opportunities will increase. In this present scenario there is a lot of middlemen between the producers and the ultimate consumers and because of this prices of goods increases five to seven times. Allowing the FDI, will definitely reduce the number of middlemen as company will have a direct link from manufactures and to consumers, in this way Consumer will get the quality products at cheaper price. Standard of living will improve. Supply will increase which definitely helps to meet the demands as a result Inflation will reduce. Which helps the RBI to reduce interest rates.

However opening FDI in retail sector or any other sector, will expose our Indian Economy to Global risks. In 2009 when recession hits the world our Indian economy didn't get much affected, because at that point of time our Indian economy is not much that expose as it now.

My suggestion is FDI should be allowed in retail sector, but government should frame policies which helps in boosting the domestic manufacturing. Moreover there should be restriction in repatriation of profits, so that there should be stability in the value of Indian Rupees. The government should establish a regulatory authority which will keep a check on these companies, so that these companies will not take undue advantage from farmers and does not involve in malpractices.

Rate this:   +113   -5

Rao Lax Yadav said: (Mon, Aug 11, 2014 04:20:58 AM)    
In my opinion FDI in India should be allowed but there should be some strict rules and policies to control the level of involvement of FDI in Indian market.

It should be allowed partially not 100%. In every field it has its pros and cons,

Eg. If we talk about FDI in retail sector then it has various advantages and disadvantages too.

Advantages are - it will provide better infrastructure.

Better quality of product.

Inflation rate will decrease.

It will boost the economy and will increase the GDP of our nation.

Disadvantages - it will affect small scale businessmen.

Unemployment will increase etc.

At last I want to conclude that FDI should be allowed for small period of time with strict rules and policies.

Rate this:   +41   -7

Sivaramakrishnan said: (Sat, Jul 26, 2014 10:49:53 AM)    
Hello Everyone,

According to me, FDI is having both advantage & disadvantage. Advantage in the sense, It will be creating direct and indirect job opportunities to everyone & through FDI investment, Indian Economy will be going to upwards. At the same time, the small retailers will be getting affected by the FDI. "Prevention is better than Cure". So our Indian Government should correct the FDI policies to save the small retailers of our country.

Rate this:   +19   -4

Shankey Kumar said: (Mon, Jul 14, 2014 03:22:12 PM)    
Hello friends, acc to my point of view, the FDI in retail sector will come but with the restriction that government should hold the complete control on the foreign companies such that government should immediately cancel the licence of these companies whenever government feel that these companies are harmful or useless for country.

No doubt, today with the coming of foreign company provide benefits. When these companies come in India, they can open their mall in big cities and they can purchase things of daily needs directly from farmers as a result of which their is decrease in the price of products because of removing of mid stakeholders. Also the quality of products is good. With the coming of these companies, the farmer get the right value of their products. Also there's increase in dollar in India which help to improve the economic situation in India. There are also large number of peoples who get work in these companies. With the formation of big malls, there is also improvement in infrastructure.

But we can't ignore the harmful effects of these companies like it can totally damage the value of local shopkeeper as a result of which there is increase in unemployment.

So at last I conclude that the foreign companies should come in India and they can open their mall but the government take complete control on these companies and make a complete arrangement of all the person who are effecting after coming foreign companies.

Rate this:   +71   -12

Rajesh said: (Thu, Jul 10, 2014 01:52:38 PM)    
Hello friends.

I am in favour of FDI in retail. India is a developing nation and like any developing business the Indian market also needs lots of investment for its growth, for the growth of the country. I agree with one of my friend as he says that we talk about globalisation on one side and put off the idea of fdi on the other hand.

I just want to put some valid points why it is necessary in a developing country like India.

1. Stable economy.
2. Low inflation.
3. Access to the advance technology of the world.
4. World class infracture.
5. Better utilisation of resources.
6. Good foreign exchange.
7. Increase in employment.
8. Increase in the no.of trained labours.

These are just few but major advantages. Now I want to give some practical data from India and across the world.

Before 90's FDI was not considered good for the country. But after 91 when FDI was allowed in India.

1. GDP grew from 1.7 % to around 5% in 95.

2. Inflation came down from 17% to 7% in 95.

3. Financial deficient came down to $1 billion from $9 billion in 95.

Now if I talk in the context of the world there are many asian countries where it is accepted heartedly. Malaysia, Singapore is such countries which accepted this policy and all of us are aware of the development of this two countries. In china they have the policy that chinese government won't accept an investment below a certain amount but it may go upto even 100% investment. The minimum investment should be 25% in china. Similar is the case with Thailand. But in India we talk that investment should not be higher than a fixed value in most of the sectors. Currency reserve bank of India allows fdi with max 51%.

Investment in most of the sectors except one or two sectors where it is 100%.

There may be some demerits also of FDI like.

1. There may be monopoly in the market if a particular investor is the major player.

Bt I think this problem can be sort out with some strict rules and of course if our leaders play their role actively and wisely.

Over all I want to conclude that FDI is very necessary in India if it wants to run on the track of developed nations. There may be some demerits but it has major advantages as compared to demerits. And we should change our thought for this. We should try to look the other side of the coin which has many gifts for us.

Thank you.

Rate this:   +137   -13

Rahul said: (Sat, Jun 28, 2014 07:23:51 PM)    
I am ok with FDI but not more because India need FDI in some place which not developed for long time. Government should allow FDI in undeveloped area. But it is not used for log time period. Today our country economic very low we need some boost from foreign country. In some place. This is my view on this. Thank you.

Rate this:   +8   -17

Tapas said: (Thu, Jun 5, 2014 11:37:40 PM)    
In my opinion FDI has some advantages as well as some disadvantages. At certain angle it seems like a weapon of globalization of our economy but also its disadvantages are so much influential that it can't be allowed at once. Because the no of people gets affected by this are large and it is not favorable. So Govt should take the initials to strict the middlemen and should allow controlled FDI in some sectors which are not a state of art at all. So by this an environment is needed to be created because all revolutions need an environment. After that FDI has to be allowed gradually and controlled way to agriculture and other daily life product sectors. Because we can't avoid FDI if we wish to grow globally but a time horizon in needed to apply it in our mixed economy system.

Rate this:   +29   -5

Amulya said: (Tue, May 20, 2014 11:18:20 AM)    
Retailing is one of the pillars of the economy. India's retail sector contributes to 14-14-15% of the GDP. WE have one of the world's largest retail markets. It is estimated to be us $500 billion. Its very fast growing.

Until 2011 India has denied fdi. In november 2011 Indian govt had announced reforms in both multi brand retail and single brand retail which paved way for innovation of the market. Fdi has brought in competition of the Indian retailers with global mncs like wal-mart, tesco, carrefour. Inspite of strict opposition Indian govt had allowed full ownership in single brand retail from jan 2012 with a requirement of sourcing 30% of goods from India. Multi brand retail was given 51% of ownership allowance from from foreign retail in dec 2012. Because of heavy uproar from the opposition, only some states would allow for this.

Rate this:   +18   -6

Sumit Ojha said: (Mon, May 19, 2014 01:16:12 PM)    
Hello Everyone.

I am in Favour of FDI.

On one we talk big about globalisation and on other hand we stop it if what we sell is buying is good but if what the sell is buying then it is bad.

Yes it is true that the FDI has cons but they do not underline the pros.

When the country is capable of doing something we should not stop competition rather we should raise our standard to meet them or take them down.

Talking about the good points there are many.

1. Liquid money to Govt.
2. Infrastructure.
3. Jobs.
4. Better choice to buyers.
5. Standard of living.
6. Demand for the local commodities.

And many more,

Yes there are bad points as well we should properly implement the rules and have proper guidelines to minimize the negative points.

But totally stopping the FDI will be a Loss to country as well as to the local retailers as they would not know their status and will be in disillusion that they are at the top of chart.

Rate this:   +25   -10

N K Jayaraman said: (Sun, May 11, 2014 06:01:31 AM)    
Dear All,

FDI in retail sector is good for India, so long as we are not upto the mark in doing.

The retail properly. Our country has a vast population which is a big market. Day to day retail needs of Indians are increasing day by day both quantitatively and qualitatively. The private retailers in India are interested only in their well being. Government doing retail has its own deficiencies due to the uniqueness of Indian market. For maintaining quality of products, there must be competition between public sector and private sector. Why we should be enamoured by the fancy packaged products of FDI and find fault with them.

Instead the ultimate users of retail markets that is buyers must become choosy about their day to day needs and ensure that they get the best either from Indian retailers or FDI developed retailers. If inviting investment into our country is of paramount import there are various neglected areas where nobody wants to look at. Government can regulate FDI to an extent by allowing them to do retail only and only if they cater to the neglected areas, as also plough back the profits generated out of their investments into our own country without allowing them to take it out at least for a 5 year period.

Rate this:   +15   -4

Prashant Chaudhary said: (Fri, May 9, 2014 06:47:54 PM)    
Hi folks. FDI (foreign direct investment) is a burning issue for many months and years. Till 1992 Indian government followed licence permit due to which India had lack of foreign currency, so they were unable to buy crude from gulf countries, in the government of P. V Narshima Rao, finance minister Dr. Manmohan Singh proposed 'Globalization' term in contemporary budget, which opens the door for foreign investors in India, thus foreign investor can invest in India and this situation is called FDI in economic term.

FDI is very important for India because it gives the chances to Indian government to earn foreign currency from foreign companies. There so many examples of FDI in like SEZs, PPP model these things gave boost up to India economy to reach on its zenith.

Shine India dazzling buildings marvelous infrastructure is a boon to India which given by FDI.

If we talk about economic power of India in the Asia and in the World it happened due to FDI India. FDI is good in retail sector, Indian government has been provided 100 percent investment to companies it means that companies can purchase and sells goods in all over India easily.

But 100 percent FDI in retail has drawback too, it has removed hawkers from the market.

Which occupied a large no of place in the market. Thus hawkers has lost their jobs and they have nothing to do now.

So government should take care of hawkers too.

Rate this:   +33   -4

Vishal Advani said: (Fri, May 9, 2014 12:28:11 PM)    
Hello Friends.

FDI in Retail sector:

No I am not in the favor of FDI in retail.

"Competition is always in the favor of consumers, monopolies not".

1. They adopt Predatory pricing strategy.

Predatory pricing (also undercutting) is a pricing strategy where a product or service is set at a very low price, intending to drive competitors out of the market, or create barriers to entry for potential new competitors.

How it works:

Big brands like Wal-Mart, Tesco etc. Buys goods from farmers or manufacturer in dirt cheap price then they sell those products to customers after adding up their margin on it. This process continues till other competitor exit from the business.

After then they start up rising their profit margin on the product because it is only available in their stores.

Painful Experiences:

1. On feb.2008 European Union adopted a declaration because of farmer's protest around the euro zone. In that declaration it was stated that - evidence from across EU suggests large super stores are abusing their power to focus down prices take suppliers to unsustainable levels and impose unfair condition on them. The declaration came because of farmers protests in front of super markets across European countries like France, Italy, Netherlands, Belgium the nature of the complaints are similar in the zone, which are as follows:

The giant retailers were squeezing the pricing paid to the farmers for products like milk & meat etc. And in some instances forcing to sell at below cost prices.

2. On jan 2010, Bob Russell, MP of Britain told that "Britain was a nation of small shopkeepers all of that has changed and it is because of the super markets lead by the giant companies. It's impossible for small shopkeepers who have so much to offer to compete with the prices of super market. One on six small stores in Britain has gone out of business in the last decade."

3. New initiative started in USA which is named as small business Saturday which promotes small scale businesses in which buyers buys goods from small shops on Saturday to help and promote small scale businesses across the country including New York, Boston, Los Angeles, and Miami.

4. Amul being most successful cooperative society still farmer are protesting and R. S. Sodhi MD of Gujarat Cooperative Milk Marketing Federation Ltd. (Amul) said that "farmers get the least returns from the modern trades and so called efficiency benefits only get by large retailer as they constantly drive down the price rates.

5. Another example of Pepsi, when the Pepsi factory was under its setting up process in the Punjab, the farmers of Punjab protested because the Pepsi authority committed to purchase the potatoes of the farmer but later on the reject and told the farmer that there potatoes are not up to their standards which is used in making up wafers chips and they have imported potatoes from the foreign countries.

6. Only 30 % is mandatory to purchase from Small and medium enterprises (SME's). What about rest 70%?

7. The large supermarket will import rest 70% which will increase current account deficit of the India. It will demotivate the small and medium scale industries. Hence it will increase unemployment.

Rate this:   +86   -5

Prashant Kumar said: (Fri, May 2, 2014 01:38:06 PM)    
FDI means foreign direct investment where business in the country by another country. According to me India is now a developing country. There is need of FDI in my point of view, because this increase the flow of money business and technology such as in telecom automobile etc. An increase in FDI may be associated with improved economic growth due to the influx of capital and increased tax revenues for the host country.

Host countries often try to channel FDI investment into new infrastructure and other projects to boost development. Greater competition from new companies can lead to productivity gains and greater efficiency in the host country and it has been suggested that the application of a foreign entity's policies to a domestic subsidiary may improve corporate governance standards.

Furthermore, foreign investment can result in the transfer of soft skills through training and job creation, the availability of more advanced technology for the domestic market and access to research and development resources. The local population may be able to benefit from the employment opportunities created by new businesses.

Rate this:   +18   -8

Raj said: (Thu, May 1, 2014 02:36:29 PM)    

Fdi in retail has its own advantages and disadvantages to Indian economy:


1. Due to economies of operation. Production facilities will be available at cheaper rates thereby availability of large variety of goods to ultimate consumers at reasonable and cheaper rate.

2. Availability of new technology leads to give development of infrastructure in domestic country.

3. Long term cash liquidity.


1. Agriculture.
2. Breakdown of small shops.
3. Decrease in rupee value.
4. Internal resources.
5. Manpower in rural area.
6. Productivity.

Therefore, FDI in retail can be allowed with some good regulations which cannot affect on rural part.

Rate this:   +17   -6

Mahendra Choudhary said: (Tue, Apr 29, 2014 01:23:25 PM)    
In a developing country like India allowing FDI may help in booming the economy. But, this will only be up to a certain period of time only. Initially, India will get employment but that may also affect the middle class people who are mostly depended on small business. The employment provided by FDI will be of low class like, sweepers, security guards, etc. FDI saying that the farmers will be benefited but, their land used for cultivating the crops by spraying large amount of pesticides will be infected.

Ex. FDI using one farmers land for one year. It will cultivate large amount of crops by using pesticides indirectly affecting the land's quality. After one year that land will be poisoned. Then FDI will shift to next farmer spoiling that farmers only land.

The quality of food items will reduce due to mass manufacturing and large storing and high demand because only one firm is there to satisfy the need. But, now there are many local small firms to do this.

Also, allowing FDI we will have development of particular class of people only. Small business families will suffer. Remember the implementation of LPG in 1991. This led the many consequences into the Indian society causing a lot of corruption and development in only some classes of people. Indian investors were affected and only foreign investors were profited causing instability into the Indian market.

If we want development we need to have FDI only foe some period of time. Allowing foreign investors to invest in Indian companies. Creating more Indian entrepreneurs and helping them to rise their organizations.

A country is only developed if all class of people are developed. Purchasing the thing one rupee more will not matter because that rupee will be in my country only.

Example- One local market with 10 small shops. There are 10 Indian owners, 10 Indian managers and almost 100 workers who are treated equally. But consider that whole market into one FDI mall. One foreign CEO, one foreign manger, 10 Indian sweepers, 10 Indian toilet cleaners, 10 Indian security guards.

Giving this kind of employment will make us slaves.

I strictly oppose FDI in India.

Rate this:   +136   -9

Sravs said: (Thu, Apr 24, 2014 07:57:01 PM)    

In my point of view, FDI is not at all good for India because India is a country with lot of rural areas. If we support FDI the rural area people position will become more hard because instead of increasing their economy it decreases their economic growth. And as a Indian I won't support in decreasing of our economy by buying foreign products.

Rate this:   +10   -3

Robin Tyagi said: (Tue, Apr 22, 2014 10:54:42 PM)    
I am of a view that FDI in India should be allowed and encouraged only in those sectors in which the country doesn't have a state-of-art infrastructure and also in those where we need heavy imports from other countries.

We must not take any inefficient decision in case of FDI but should give it a good (not very long) stretch of time and thus come up with a solution that is accepted by the people that eventually benefits the economic as well as the social condition of the nation.

Rate this:   +8   -3

Rohit Batra said: (Sat, Apr 12, 2014 06:34:38 AM)    
India is a developing country and our economy has been bad from a long time. Introducing FDI in retail sector would sure boost the economy for years ahead, not to mention the other added benefits like lower prices of commodities for consumers, better quality products, employments, etc. These benefits cannot be achieved from investments within the country, for one we are not capable of such huge and long term investments. We cannot even compete with foreign companies in providing all such benefits in such low margins.

Also, we don't have much cash inflows from other countries to India because we lag behind in money and technology. And so the economy is weak. Other countries which have FDI and are yet economically strong, for eg. China, are far more developed than India. China is highly advanced in terms of electronics, manufacturing and technology and has business globally. Therefore, its people are capable to compete with foreign investors.

In India, in a long run, FDI is going to worsen the economy. Once the initial and setup investments by foreign companies are recovered and they are well established, they will start earning profits and Indian money from the consumers would flow to these foreign countries making the economy of India gradually weaker.

What we need today, is to strengthen the economy first. Sincere and dedicated development is required in terms of every field you name, technology, education, construction, management, manufacturing and everything else. Thats the only way to improve economy and the money inflow to India, not FDI. Then only we would generate employments for our people and be able to provide better and cheaper products to our consumers.

Rate this:   +36   -7

Deshraj said: (Wed, Apr 2, 2014 07:24:47 PM)    
According to FDI in India should be allowed but in those sector where we have to import the material from foreign countries. Then it will increase employment rate and also reduce the import charges or formalities.

Rate this:   +19   -5

Kumar Shantanu said: (Wed, Apr 2, 2014 04:01:17 PM)    
I want to support my opinion with some statistics.

1. China receives $ 116 Billion as FDI inflow and considered as one of the best FDI destinations and the main reason is it has increased its integration with the world and has taken a path to true progress. Whilst India suffers from economic and FDI stagnation due political friction as it receives only $ 16 Billion FDI inflow and that too has got a downward trend as foreign investors lose faith in Indian market and politics.

2. Secondly, political and social situation of the country is alienated with prejudices such as decline of small retail shops and increase in unemployment. This serves as biggest hurdle in economic development.

3. Thirdly, it would increase quality of product and services to consumers and would serve as an effective measure for the elimination of those middlemen who are parasites thriving on the cost of consumers.

4. Fourthly, it would give impetus to globalization and appreciate employment opportunities in MNCs, BPO and KPO sector.

5. Fifthly, it would act as an incentive for technological progress and would keep India at par with the latest trends in technology.

6. Sixth, it would increase internal competitiveness of the economy and an apt old saying goes with it. "Competition appreciates performance".

7. Seventh, it would provide India a voice in international forums and market and increase its importance at global level.

8. Eighth, in edible sector only when McDonalds and Kentucky Fried Chicken (KFC) came into India. Intrinsic Indian industries such as Haldirams and Bikanerwala had gone global to acquire foreign markets.

9. Ninth, China being largest recipient of FDI. Neither did it lose small businesses or cottage industries nor it became a slave of other countries. A well controlled and cleanly managed FDI operates in China which has accelerated its economic growth rate.

In conclusion, I could say that what India needs in FDI appreciation with NECESSARY and SUFFICIENT degree of control over it. Here the words SUFFICIENT and NECESSARY means a lot as it advocates both welfare (check on exploitation, unemployment etc. ) and also relaxation of meaningless restrictions to take a path and initiative of true progress.

Rate this:   +72   -8

Ankur said: (Mon, Mar 31, 2014 09:54:25 PM)    

FDI is a good opportunity to the government because it is the big cause of the boot of our government but everything has advantages and disadvantages if we say that it is totally wrong it is not good it gives the boot to the government as well as the retail sector but in todays time we are suffering from the problem of unemployment which is the cancer to the youth if we accept the fdi we increase the boot for the government.

But also gives a boot to the problem of unemployment.

Rate this:   +5   -4

Sowjanya said: (Sun, Mar 23, 2014 09:07:25 PM)    
In the present era, Foreign Direct Investment plays one of the major role in the development of economy of the country. The entry of foreign companies into Indian Retailing will not only create many employment opportunities but, will also ensure quality in them. This helps the Indian human resource to find better quality jobs and to improve their standard of living.

But even though FDI in retail helps in creating employment, there are many disadvantages too. The organised retail will tend to dominate the entire consumer market. The entry of foreign retailers in our country will not only hit the livelihood of the local retailers but also the middlemen working in their industry may be thrown out of the job. Since the look for a place in the heart of cities to establish their company, the real estate value increases.

As a coin has two sides, everything has its positives and negatives. But since there are many negatives over positives, Foreign Direct Investment in retail sector is not good for India.

Rate this:   +19   -5

Kishan said: (Fri, Mar 21, 2014 11:40:52 PM)    
According to me FDI in retail should not be allowed in India. Although it will decrease the price initially but in the long run, it will make the Indian markets more prone to international fluctuations. And which will harm the economy. Moreover it is seen in many countries where FDI in retail is allowed that there is sharp growth in the rate of unemployment.

Rate this:   +16   -2

Swaraj Pattanaik said: (Fri, Mar 21, 2014 12:05:20 AM)    
According to me FDI is good as well as bad for our country BECAUSE. If govt is allowing it then automatically few things will get develop such as:

1). Employment.
2). Economy.
3). Lifestyle.
4). Awareness about the foreign brands.

But in other side similarly the effect will be on,

1). Agriculture.
2). Manpower in rural area.
3). Productivity in some sectors.
4). Breakdown of small shops.
5). Decrease in rupee value.
6). Internal resources.

And many more things. If we 'll see it as from a different angle then the positive side is much more less than than the negative side for FDI in India.

Lastly I'll suggest that, there should be some tight rules and regulation for allowing the FDI in India and which 'll never make a effect on the rural market as well as in our core production system of agricultural products.

Thank you. :).

Rate this:   +57   -7

Tushar said: (Thu, Mar 20, 2014 11:40:50 PM)    
Hello Everyone,

In My point of View FDI in retail sector should not be allowed in India.

India is a Very Big Country and more Importantly is a developing very fast. Indian Government Can bring policies which are friendly for local Entrepreneur's and promote the existing technocrats. We have many Indian companies which does far better job's even in current situation's.

The Organized Retail is accessed majorly by Tier 1 & 2 Cities what about the Rural Indian's who stays in Villages who will be left aloof. Which will Create the Gaps between rich and poor. Even Today more than 70% of Indian Population does not have easy access to this sector. So bringing in FDI is like calling for mechanism which will suck our actual money and take it away to other countries.

Technologies brought by this foreign Companies can also be very well emulated by existing technologies. We indian's have excellent brain's and can very well devise our own Technologies for this sector if needed so.

Bringing FDI can give a Booster dose to GDP growth immediately. However to ensure the consistent growth Indian Govt will have to pitch in time and again to create conducive environment even for this foreign player's.

Indian Govt Better Frame the alternate policy which will involve Indian's and focus more on inclusive growth as the same can be sustained for longer time to come ahead. This will also improve the Morale of all Indian's.

Rate this:   +14   -4

Chanda said: (Thu, Mar 20, 2014 02:23:10 PM)    
Hello everyone,

According to me FDI should not be allowed in India because it will largely effect our local retail sector. As the rupee value is demolishing day by day these foreign countries will be able to provide goods at a very low price which will not be affordable to our local sellers and hence they will have to close their medium of livelihood. As we all know that India is a poor country and there are very few sources of income after arrival of these foreign huge companies the sources of income in the Indian market will become almost zero. And after reading all the stories and history of British-raj in India I fear that our country will be slaved for another 200 years by another foreign reign, I know I am sounding a bit stereotypical but before letting those countries enter in our country again we should start searching for another Mahatma Gandhi!

Thank you for listening :).

Rate this:   +45   -7

Umang said: (Wed, Mar 19, 2014 02:13:08 PM)    
Because of the collapse in value of rupee, people are facing a huge problem of Rising Prices. As compared to this, the cost of foreign products is less. Moreover India is the 3rd largest producer of agriculture, but we do not have the technologies to process the goods. FDI gives new technologies to make the goods look more presentable and efficiently usable. Rate of Employment also increases. And while working in these foreign organizations one can learn about the good areas of their culture. We can continuously work better and get to a high level job as well. And then, after reaching to a magnificent position, we can cultivate Indian morals and values at the foreign grounds. It can only happen due to this collaboration.

Rate this:   +22   -10

Akshay said: (Tue, Mar 18, 2014 07:30:11 PM)    
According to me FDI should come in India because it gives us employment may be it harm our local retailer but after fdi in India there is stuff is easy to buy and directly we get profit because we get the things in much less amount.

Rate this:   +7   -14

Vinoth.M.K said: (Tue, Mar 18, 2014 11:13:58 AM)    
Dear citizens of India, we should be unit in opposing the FDI to develop Indian economy and to save Indian small scale vendors, the large scale foreign vendors will gain the money from our fellow people and don't let the small Indian vendors to gain in business and Indian won't get any income and Indian economy goes down, so please stop FDI in India.

Rate this:   +19   -2

Ramya said: (Sun, Mar 16, 2014 01:06:10 PM)    
FDI in retail sector is like a coin. It has 2 sides- positive and negative sides. When FDI is accepted by the government it will improves our standard of living, increase the quality of products, development of modern technology at same time it will affects the poor people. They cannot even able to afford that. Due the development of modern technologies it reduces the manpower in the sectors.

Rate this:   +19   -3

Vishal Bhayani said: (Fri, Mar 14, 2014 02:06:02 PM)    
HI friend.

In my point of view FDI in retail is good for Indian economy. Because of it it grow fast as well as increase the standard of living of people. There are several benefits as under.

1. Increase employment.

2. Customer get good product at reasonable price.

3. Farmer get enough price for his product.

4. All brand under one roof.

5. There are many option available for customer to chose best among the various brand.

6. New technology are come and it helpful to fulfill customer need.

7. Because of employment the national as well as per capita income will increase.

Thus this all are the benefit of FDI in retail are to be in come.

Rate this:   +37   -27

Pawan said: (Fri, Mar 14, 2014 09:55:54 AM)    
FDI in retail should not be allowed in India as of now, our country is facing a big problem of large unemployed population and this must be solved as soon as possible. But bringing FDI is nothing but a bad idea because if Indian government allows it, they are just destroying Indian market and making a space for foreign investors. It will for sure reduce the manpower need so it will not increase the job opportunities but Reduce it for sure.

So my point of view is. . FDI should not be allowed.

Rate this:   +19   -6

Bharat Choudhary said: (Thu, Mar 13, 2014 06:07:51 PM)    
Hi friends,

I hereby speak in against of FDI in India. For which to support I have a short story to tell.

My Father has a medium size grocery shop in the market. He explained this scenario with the real facts which he faces often in the competition.

He told me that if a small or medium businessman opens his or her shop in the neighborhood then we can tackle the situation with hard work and dedication.

But when a big firm like 'more market', 'reliance' or 'big bazaar' opens their outlet then during the first six or eight months of their operation they offer a huge and continuous discount which helps them to draw away the customers from traditional markets.

This way the local traders lose their ground and are forced to shut down.

Once the locals are gone then they start their real agenda and capture the whole market.

So, you can now imagine what damage the 'big' players are going to do (of course removing competition instead of creating one).

Rate this:   +74   -5

Arnab said: (Wed, Mar 12, 2014 08:02:50 PM)    
Hello friends,

According to me, FDI should be allowed in India but in a controlled way. By controlled way I mean to say that FDI should be allowed in those sector where we don't have the edge of excellence eg- manufacturing of arms and ammunition which can boost our economy to a large scale. We all know we still import all our defence needs from other countries. So by allowing FDI in these sectors we can not only become self dependent but we can make a good profit by selling these products to other countries.

Thank You.

Rate this:   +17   -9

Vignesh said: (Wed, Mar 12, 2014 10:47:29 AM)    
Hello friends,

FDIC has both positive and negative points in it but I m against the FDI, it only create a space between the rich and the poor but also makes a disaster change in every fields even in agriculture too! Introducing a new product in market by foreign industries by the attractive ad makes a common man to buy it and so the problem starts from the lower side. By this way each and every dept affects by it also the government.

Rate this:   +21   -3

Jos said: (Fri, Mar 7, 2014 06:32:37 AM)    
Hi friends,

If government allows FDI into retail, we will face a lot of problems in Economic of our country. They will have to increase modern technology. Definitely it will affect our employment opportunity. They will try to replace the manpower and they will not consider the rural area development.

My point of view, Our government should not allow FDI into retail market. Suppose They allows FDI, after 5 years, India will become poor country. So we should not allow culprits into our powerful country.

Rate this:   +23   -33

Kp Mukesh Kumar Singh said: (Thu, Mar 6, 2014 02:01:20 PM)    
Hello to all,

I would like to put some points in the against of FDI.

It is very simple perception to all that is, if Indian government allows FDI in retail sector then it will certainly sort out a number of jobs in retail sector. Friends as country like India is facing problems like unemployment, corruption, anarchy etc at a large extent.

Allowing FDI in India will have drastically effect on its economics and overall development. That is if FDI is establishing in a particular section of a sector it will modernize its working infrastructure, more advent of technology and installation of machines will definitely replace manpower in India.

And we are also unemployed and facing the same problems in getting jobs, don't we. We know this fact very well. I want to clear one misconception about this fact FDI will not create jobs but cut jobs. According to a statistics FDI is vacating approx 12 lakh people in India from various sectors and for example we are well known to this fact that there are approx. 12 lakh people employed in Indian railway, suppose this people are withdrawn suddenly from this sector then where will the people go for bread and butter. Think. What will be the situation.

Then you can imagine the consequences after 15- 20 years. If someone is talking about the development of our country. Listen carefully India will develop when its downtrodden society, backward people in village side will develop. We know FDI will not benefit the rural areas, then why are we talking about the development of our country by FDI.

Also it has same adverse effect to other sectors also. By the time Indian market will go in the hand of foreign company and then they will regulate as their policy. Only talking about the technology and black money that FDI will give is not sufficient for the development. Who will talk and contemplate about the small issues.


At last I would like to say that there is a great need of establishing company in India. Indian industrialists are opening their companies in foreign. Why are they doing so, is their lack of talent or entrepreneur in our country.


Rate this:   +145   -20

Gurleen said: (Wed, Mar 5, 2014 05:56:37 PM)    
Everything has pros and cons. FDI in retail too.

Many appreciate it as it does allure everyone but it is hard to see its dark side at once.

India is a developing country suffering from issues like increasing population and unemployment. I can't see in any way FDI can increase job opportunities. It might be for the smart and educated section but what about uneducated and poor people, (basically for whose development government talks. These people who earn their livelihood by involving in small businesses or as workers in retail sector will be just thrown out of jobs left poor again.

This will ultimately increase the gap between the rich and poor. Unless this gap is made least India can never come under developed countries.

Allowing FDI is allowing foreign market to set up in our country and destroying our own.

Its just the same as we used to read in fairy tales, 'A house made of candies, no one gets to know that the wicked witch resides inside'.

Rate this:   +47   -7

Gurleen said: (Wed, Mar 5, 2014 05:01:31 PM)    
FDI allowed in retail is a good step as it increases competitiveness which further provided better prices for buyers as the market is not under the control of only few persons in businesses. TESCO and WALMART must be welcomed. These will enhance the living standards of people which will ultimately lead to country's development.

Rate this:   +18   -40

Shantanu Ghosal said: (Tue, Mar 4, 2014 12:25:57 AM)    
Hi Friends.

Before we level FDI in multi brand retail we must understand the need of the hour.

Our country is facing some severe levels of fiscal deficits with dwindling foreign currency reserve. To add to that we have a falling currency and US taper is creating more pessimism among the investors who are withdrawing their money from the market and which in turn is pushing up the inflation rate. So in short it can be said that we are in real need of a massive level of cash influx in a short term into the Indian market so as to rejuvenate the market. And FDI is the best solution to this crisis.

Even the rationales presented against FDI do not hold good if seen in depth. First of all giants like WALMART will be opened in metro cities which already have so many Marts installed in them. But their the small shops are functioning as they used to. Through FDI many other foreign companies like TESCO etc will also enter the Indian Market not just WALMART so there is no chance of monopoly rather competition among the foreign and Indian companies will increase which will bring the prices down, create more employment and thereby better services to customers. The kirana shops will also lose their strong hold and practices like black market, hoarding will stop and they will also be forced to sell at legitimate prices.

Institution of Middlemen will also be destroyed and peasants will be less exploited and more benefited as the companies will also help them out by providing better technologies. All-in-all its a qualitative move and should be encouraged.

As of Indian customers, a large fraction of it are credit customers so they will never stop using the kirana stores. Its a win-win proposition and needs to be accepted.

Rate this:   +31   -14

Santakt92 said: (Sun, Mar 2, 2014 10:12:06 AM)    
Hi friends, according to me fdi is not good for health of Indian economy this is because India in itself is a big economy we have to find the way how to use our policy for the beneficial of our economy. In our country their are various opportunities for the Indian investors but the policy the Indian investors is not good. Our ministers are only thinking for his own bank they don't think about Indian's people bank.

If we make the policy of investors easy for Indian then only we can make more and more people rich and at the same time we have to appreciate their efforts by giving them some financial help. Due to fdi there is no way for the growth of small investors and middle as well. The difference between the rich and poor increases. This is not good for us. So fdi is not good for present Indian economy.

Rate this:   +8   -10

Amol Deshmukh said: (Sat, Mar 1, 2014 04:23:52 PM)    
I am not appreciate that FDI is not good for our nation because of as we think as an investor point of view such a investor can invest in the investment avenues it needs more return from it and the fdi such part of investment to foreign nation so our country is debtor and needs to pay back and its impact outflow of fund from our country.

Other countries adopt institutional investment policy for raising the fund (Ex. Mexico - call money from public) so why our country not adopt open market operation it is better so why our country not adopt it?

If fdi is good so why our country adopt 100% FDI In all Sector?

If you think blindly for capital adequacy it is good but if you think as an long term investment point of view it is harmful to our economy.

If we adopt the policy of Institutional investment in the forex and start hedging on behalf it is better option to getting the returns from that investment avenues.

So I think fdi is not good for our nation.

Thank you.

Rate this:   +13   -17

Vaishali Sharma said: (Sat, Mar 1, 2014 12:13:17 PM)    
Hello everyone :-).

FDI in India according to me at present is not more than just a quixotic idea of the honorable Indian government simply because :

- It will have an extremely negative and deteriorating effect on the small scale industries as since FDI would increase the competition of the market to such an extent that all the weak firms will be eliminated from the market which would affect a large part of the Indian population making them jobless.

- Since the products will be available under one roof entrepreneurs with low capital will be finished.

- Increased gdp will be at the cost of dependence on foreign exchanges which would lead to a situation of high fluctuations in the Indian economy and an instability in Indian market.

- For increasing good relationship with other countries India has once committed a mistake for which it payed for 200 years and it is highly. Possible that the history may repeat itself.

- India is a developing country with most of its population being based on primary sector and thus the needs are also limited which is indeed a boon for the country as it does not gets affected by the depression twice.

- When it comes to corruption and bribery it is the duty of the citizens to have a control over it.

For instance if we have one of our family member going on a wrong way we cannot ask our neighbour to get him to the right path as it is our duty to do so.

Rate this:   +52   -6

Vaishali Sharma said: (Sat, Mar 1, 2014 10:11:35 AM)    
Hey friends;

FDI in India may effect the following sectors:

1. Agricultre and animal husbandry.
2. Mining.
3. Manufacturing.
4. Defence.
5. Power.
6. Credit information companies.
7. Insurance.
8. Petroleum and natural gas sector.
9. Courier services.
10. Civil aviation sector.

FDI in the various sectors may prove itself useful in the short run but when we think about long term profits FDI does not stand a chance. In sectors like agriculture and development of townships, housing, built up infrastructure and construction development projects where a large part of the population below poverty line can get job on daily basis may loose their jobs because of FDI projects and a direct link between the producer and consumer which would eliminate the chain of middlemen.

In sectors of defence, insurance and banking too much of FDI involvement may lead India back to the state it was in before 1947.

India is considered as the country with largest. Population in the world and thus the first and foremost goal of the government should be to educate and employ the maximum percentage of population which is just. Not possible through an investment like FDI.

Once India becomes a developed country FDI can enhance its opportunities and can widen its scope but till then it is just a quixotic idea and nothing else.

Rate this:   +16   -4

Kapil said: (Fri, Feb 28, 2014 12:59:41 PM)    
Hi friends.

FDI in India is good if we look it in short terms, because it will create lots of jobs as a salesmen and boost our economy with the inflow of foreign exchange. It will also boost real state business because initially it need infrastructure. It will increase the competitiveness in the market and provide good quality of products from different companies under one roof.

But friends if we look into it for the long terms we will losses control over the prices of products because it will finish the entrepreneurs who has low capital investment. It creates monopoly in the market and only these big stores decide the prices of products like vegetables and cereals which I think basic need of every human.

Today as a customer I want the prices as low as possible and the hike of prices in daily used products is completely depend on the whether of our country but if we allow these things then prices will depend on the dollars exchange rate also and we will not handle that because we don't have control over that. Even if we have good monsoon but just because of global instability we bound to pay extra.

See the examples of petrol in this case. I know we import petrol that's why we are dependent but even in the current FDI norms only 30% goods or raw material are mandatory from India rest they import from other countries. So why our politicians willingly give our neck in the hands on foreign companies.

Rate this:   +22   -3

Lalit Soni said: (Thu, Feb 27, 2014 10:33:09 AM)    
Hi friends.

There are some advantage and disadvantages of FDI in retail sector.


1. It will boost economical level and GDP of country.
2. It will also increase the employment rate.
3. Infrastructure sector will get better.
4. Relationship with foreign countries will get better.


1. Entrepreneur's will be destroyed.
2. Small industries will be affected very badly.
3. Developed industries like reliance, tata, aditya birla group. Etc. Will get great competition from FDI.
4. Large part of our economy will become fully dependent on FDI.

Rate this:   +34   -5

Rishabh said: (Mon, Feb 24, 2014 11:39:39 PM)    
Hii friends,

In my opinion! if we permit to introduce FDI in retail sector. We faces one of the big loss due to breaking of supply chain & our country is a developing country so our need is development of all citizens of its because here people not on a same income platform. A big part of population is below poverty line & a big part is very rich. So our first aim should be reduce this gap between people. It can only be eliminated by increasing the employment offers & if supply chain will break products will directly from the company to consumer. So in this domestic whole seller, retailer role will be finished. So medium sound businessman will go in loses.

Some people think by introducing FDI supply chain will be more efficient. How it can be possible. We can understood by an example:

Suppose 20 FDI store in India & each has 90 employee so total will be 90*20 =1800 people.

Now suppose each FDI store have 5000 customer (family). So total family attach with FDI is 5000*20 =100000.

Now suppose each 10 group of families purchase goods from one shopkeeper. So total shopkeeper affects is 100000/10 =10000.

So conclusion is at the place of 1800 jobs if we affects the 10000 shopkeeper & wholesaler will be in extra so how we can improve employment by introducing FDI.

Finally my opinion is not suitable for developing country like India.

Rate this:   +37   -9

Kiwi said: (Mon, Feb 24, 2014 02:12:33 PM)    

FDI has both advantages and disadvantages. Before adopting any system, we need to analyse the long term effects of it especially in the marketing structure we have. I do agree that the opportunities for development that FDI offers is very attractive. But does it suit India? Ours is a developing nation and the development that we have witnessed over last 15-20 years is tremendous. With all the resources of our country, we have reached heights. Then do we really have to depend on FDIs for development in terms of modern technologies etc. And considering the employment opportunities, I agree that FDI could bring boon to employment sector, but employment for whom?, the well technically skilled and educated or the local people who are illiterate.

I don't think they would consider the latter. Majority of Indian population are still illiterates though skilled. Lack of proper education keeps them behind. They does their living by small shops etc, . Why can't we consider them as entrepreneurs and encourage them instead of foreign companies. The results may be late and not rapid as FDI. But after all nation is for people!. Focus on common people for they constitutes the major portion in Indian population. Promote the Indian market and exports for we do have resources and diversities no other nation has. And an important part -the government!.

I am not sure whether corruption can be stopped, but am sure that it can lead to the development of our nation.

Rate this:   +67   -3

Ebin Thomas said: (Fri, Feb 21, 2014 02:49:02 PM)    
Foreign direct investment incentives may take the following forms:

*. Low corporate tax and individual income tax rates.
*. Tax holidays.
*. Other types of tax concessions.
*. Preferential tariffs.
*. Special economic zones.
*. EPZ - Export Processing Zones.
*. Bonded warehouses.
*. Maquiladoras.
*. Investment financial subsidies.
*. Soft loan or loan guarantees.
*. Free land or land subsidies.
*. Relocation & expatriation.
*. Infrastructure subsidies.
*. R&D support.
*. Derogation from regulations (usually for very large projects).

Governmental Investment Promotion Agencies (IPAs) use various marketing strategies inspired by the private sector to try and attract inward FDI, including Diaspora marketing.

By excluding the internal investment to get a profited downstream.

Rate this:   +4   -9

Jibin said: (Fri, Feb 21, 2014 02:45:28 PM)    
According to me FDI should be allowed as it will create win -win situation for both Consumers base (1.21Billion) and farmers (263million). FDI will benefit us through more efficient processes and price adjusted after eliminating middlemen share which will help cultivators to sell their crop at higher prices and consumers to buy product at low price.

Rate this:   +10   -6

Utkarsh Dwivedi said: (Thu, Feb 13, 2014 11:46:15 PM)    
Its a very important message to each and every citizen of India, so PLEASE DON'T NEGLECT IT.

I want to convey my this message to all my dear friends, who took part in this long debate, especially the one who are in favour of FDI.

Introducing FDI will be a great loss to our Indian Economy. As we all know that today our nation is counted in one of the developing nation in comparison to other countries of the world, so according to me first we shall try to develop our nation in spite of thinking anything else. We need money to develop our nation and if FDI will be introduced in our country it will take much part of our Indian Economy, by 85%, and for a developing nation really it will be a great loss. FDI is to increase our living standardization. All want himself to be standard, but before increasing our status, we have to be at that level. Unless our country is counted in developed nation, a FDI will just be a sucker of the Indian Economy, and instead of developing it will again be deepening in the terms of standardization as well as a good status in the world.

Taking all aspects, government should be very clear to the topic because once introduced, it will not be easy to take it out from the country. Just imagine the situation after 20 years, when our country will be attaining a good position and at that time, any of the FDI company increases its rate very rapidly, where will the citizen, who are poor, go to purchase the things when our Indian market will all be closed. And also there is no doubt that the history may repeat itself and we, the people of India will once again the slaves.

Rate this:   +84   -29

Aslam said: (Wed, Feb 12, 2014 11:29:28 PM)    
Hello everyone !. According to me FDI Helps in transfer of new technologies, management skills, intellectual properties. FDI also can increases competition within the local market and this brings higher efficiencies. FDI helps in increasing exports and increase tax revenues. We can say it is the development of our country.

Rate this:   +20   -26

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