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

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Vikas said: (Thu, Sep 24, 2015 02:46:04 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.

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Sunil said: (Wed, Sep 23, 2015 08:01:35 PM)    
I think it might not be a good phenomenon for a developing country like India because we are having large number of un employees and allowing FDI retail means we are indirectly providing the job opportunities to the foreign countries by making them build up their own organizations and this will effect even more in the economic downfall which is already taking place in your country.

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Kunal said: (Mon, Sep 21, 2015 04:51:53 PM)    
I strictly oppose FDI in India.

FDI will lead to job losses. Small retailers and other small 'Kirana store owners' will suffer a large loss. Giant retailers and supermarkets like Walmart, Carefree, etc. Will displace small retailers supermarkets will establish their monopoly in the Indian market.

WE WILL ACT against FOREIGN FUNDED UNETHICAL ONLINE retailers in India. They must be punished for playing GAMBLING as it is not legal in India and also for anti competitive business practices.

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Rohitrajput said: (Sat, Sep 19, 2015 10:17:02 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.

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Parthivenkat said: (Thu, Sep 10, 2015 03:04:35 PM)    
From my point of view, FDI is not need to India because here we have so many knowledgeable jobless peoples but if they working with foreign companies mean what is the use for our's, that country only developed not for our self, now a days so many top multinational companies have Indian CEO's in for that what is the use for our nation. If unemployment is the only reason for allowed FDI means there is no use for our nation.

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Yogesh Kumar Jaiswal said: (Tue, Sep 1, 2015 07:47:45 PM)    
Hello everyone,

I Think in developing country like India FDI is must to develop infrastructure, economy&employment, because India need money and trained workforce for their own industry.

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Prashant Shlok said: (Fri, Aug 28, 2015 03:05:52 PM)    
In my opinion FDI should be allowed in India only to a certain extent, because being a developing country it has to maintain good relations with some countries. But, it should be limited to only some sectors such as retail. Allowing FDI in retail sector will increase employment, competition, product quality and will decrease price of goods.

On the other hand, if we allow FDI policy in agriculture it will not be good for India. The reason behind this is most of the Indian people are farmers, foreign investors will do all the work with high technology machines, so farmers will lose their work and also most of them are not much qualified to either handle those machines or get other jobs. This aspect should also be considered.

So, basically FDI is the necessary evil but it must be implemented in certain limits. Also we should follow the initiative by our PM i.e. "Make in India".

Thank you.

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P.Madhuteja said: (Mon, Aug 17, 2015 10:21:27 AM)    
FDI is good to our country to some extent. As our India is a fastest growing economy, our country needs good economic relations with other countries. And moreover FDI can develop our country economy and decrease unemployment and urbanization too. But our native goods will not be sold and there chances of decrease in our GDP.

Most important thing is that large amount of our population depends on agriculture. Implementation of machinery in agriculture sector may also increase in unemployment and moreover foreign companies will not help them at least. So our govt has to put some restrictions on FDI in favour of our people.

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Vipin Suman said: (Wed, Aug 5, 2015 05:27:00 PM)    
Hello I'm Vipin Suman,

I am in the favour of FDI in retail. Because if it comes in India then out GDP also increase. And we get a proper bill for our purchase. And it will be helpful to us and as well as the government.

Because government get taxes from this and as I heard that if FDI comes in this sector then 80% jobs will reserve for Indians only. So by this our employment rate also increase.

We have so many product choices for us but in monopoly market we have so less choices to select the product. And at the last as a being customer we all wants our profit wherever it comes through FDI or Indian monopoly market.

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Shams Alam said: (Sat, Aug 1, 2015 12:22:15 AM)    
No! its not good for India. In 1978 Chinese market was open for foreign investment and that time foreign company came in went to China and invest and Chinese worker doing a job.

But today's all Japan, German etc. company have worked with robot. And in this time India need to gave a job for people. If foreign company invest and high skills developed people need to work, so only engineers will going to work and that people also having do a job.

But not a low skills people go to job. India should try to developed in our agriculture field, because 60-65% people have depended still farming. BY the RBI GOVERNER RAGHURAJAN (its not a make in India it is make for India).

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Abhay Chhatrodiya said: (Thu, Jul 30, 2015 02:58:39 PM)    
We should not always consider FDI as the Devil. Think how many of ours can live without western lifestyle. Everyone need new Hi-tech products.

The solution of this problem is to improve the skills of the Indian marketers, and make them capable to compete with the foreign investors. Because if we don't allow FDI in our nation then it directly means that we feel insecure from them.

Famous saying implies that "Insecurity makes one week and undeveloped".

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Narendra V said: (Thu, Jul 23, 2015 09:01:39 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!

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Pranay Gharde said: (Sat, Jul 11, 2015 02:18:24 PM)    
There is no doubt that we Indians have better brains than any foreign citizen so bringing FDI in India as a means of developing technology is not appropriate. FDI should not be done in India as we all know that there is ratio of 1:63 between rupees and dollar and the main reason behind that is the consumption of foreign products in India from morning to night all we use a foreign products in terms of food, tools, cloths etc thus to avoid this FDI should not be promoted in India and apart from that our Indian investors have to follow the initiative started by our PM make in India this will bring the Indian economy back at equal level or after some years our rupee will lead dollar by ratio 60:3, this could be only possible when we start consuming Indian products and not depending on foreign products.

In the end I would like to conclude that a coin has two sides same as FDI has its own positive and negative effects but in Indian economy FDI should not be promoted much as it takes away money from India and to boost our economy all of us will have believe in make in India.

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Vivek Gupta said: (Mon, Jul 6, 2015 02:52:18 PM)    
Hello guys, today I am going to present my views on FDI Foreign Direct Investment.

India is a developing country and it needs to focus on the service sector and specially in agriculture sector.

We have been facing problems about.

1. Crop failure due to improper rain,

2. Cereal spoiled due to less available storage facilities,

3. Unable to provide MSP to all the farmers.

4. Middlemen golfing the profit of farmers, create a situation of shortage which leads to high inflation.

5. Cereal grains don't have uniform rates all around the country.

All these problems will be reduced if we allow foreign companies to infuse their technologies to the agricultural field.

They have,

1. Expert guidance.

2. Large cold storage for storing grain.

3. Cloud seeding methods to make Rainfall in cloud agitated areas.

4. Efficient transportation and management.

It would boost biotechnology in our country, food will available all weather if places don't get water.

All the government needs to do is to have stringent control on their working and regulations and don't take any political advantage on it.

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Harsh Gupta said: (Sat, Jul 4, 2015 07:00:48 PM)    

I personally believe that though foreign direct investment will improve employment condition but should be introduced into Indian market with some limitation because major of market is ran by small or big Kirana store which directly promote self employment.

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Shivangi said: (Thu, Jul 2, 2015 06:31:37 PM)    
Yes FDI in retail sector in India is God, as due to it, it decreases the number of employment. For the development of a country it is very important to employment of the people, if the people will employment, then it is good for the developed countries.

As our Prime Minister has already told that for a developing countries, it is an important to people get employ then our India will also come under the developing countries like other developing countries america, France, Germany and other foreign countries.

From my view, If the foreign businessman invest in our country then it increases the employment.

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Pramod said: (Wed, Jul 1, 2015 05:30:01 PM)    
FDI is good for any developing countries like India.

1. It will create jobs.

2. It will improve infrastructure.

3. Inrease productivity among competitor.

4. Will make things cheaper.

5. Will help to strengthen GDP.

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Keshav said: (Mon, Jun 29, 2015 12:53:50 AM)    
Hello friends,

As per my opinion FDI (foreign direct investment) is not good in retail. Powerful foreign companies only have one goal to earn lots of money at any cost. They uses resources extensively. Also India has biggest ratio of small and moderate business so FDI affects badly this area and millions of people will lose their work. Also when all the market will captured by these companies then they impose high cost of products on customer and at that we shall have no option. So FDI is not good in retail but it may be better in defense area.

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Rohit Chauhan said: (Sun, Jun 21, 2015 04:45:38 PM)    
I would like to add one point against FDI. i.e. environmental issues. Foreign companies will come here only because they know that, India is rich in natural resources, which are easily available here. They will destroy our ecosystem to gain more & more profit.

They won't bother about our future, therefore they will consume our resources without giving much attention, and after few year we have to face results only to gain employment & good infrastructure we should not compromise with our resources. For establishment of factories they need land, finally they will acquire farmer's land or they will cut our forests.

For example Delhi everybody knows that, there are lot of companies and factories, and everybody is well known about pollution level of Delhi, it is becoming severe day by day. Less number of trees but more number of peoples who breathe. Another example is "BHOPAL GAS TRAGEDY" accused abandoned after incident who was foreigner. So many poor people alleged injustice.

So as my perception, we should allow FDI, but with certain limitation regarding our environment. We should allow 100% in defense sector it will be beneficial for us.

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Shivangi Bijpuria said: (Sat, Jun 20, 2015 02:09:18 PM)    
From my view, FDI in retail sector in India is good because it increases the number of employment. Those who are unemployment, it give employment to the people whether it is students or working women. If the people pf people of our country will employed, then it is a great example of a country.

Due to it our country India will come under the developed country like other developed countries. Moreover, employment is very necessary for a developing countries. As our Prime Minister Mrs. Narendra Modi visit some parts of the world such as France, America, Canada so that they invest and manufacture their products in India so that the people of India will get employed.

If the people of India get employed then India will come under the name of developed countries like other foreign developed countries.

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Ali said: (Thu, Jun 4, 2015 04:59:28 PM)    

This is Ali.

In my opinion don't allow fdi in India ! why not India itself produce everything? In spite of having everything, money. India is going out so that foreigners come and established his product/companies/retail/communication and many others sectors!

Nowadays in India more than 70% Indians use the product which belongs to outside India you can take example like sensodyne toothpaste, Levi's L'Oreal, American tourister and lot of products if I will list here I think word limit will get over!

If you buy anything for example Coke and Pepsi Thums Up than 80% money goes out of India and benefit is utilizing by foreigners! if anyone earn 10$ in USA, India gives 60+ RS 1:60 ratio.

30 years back (don't know exact date and year) it was 1:1 ratio India also lot of Indian products in every field if India ban foreign companies to come and establish his companies in our India. Than only India will reach good heights. Otherwise nothing will happen.

Why we not popular our products outside India and not going out to establish our company?Its my opinion you may differ.


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Chandan Kumar said: (Mon, Jun 1, 2015 11:50:52 AM)    
Hi friends.

I am Chandan.

As per my perception FDI in retail sector is somehow good for Indian economy, it will increase gdp, due to this our growth rate will increase. But it is going to affect big masses of our country. After participation of FDI in retail sector Kirana stores which is available in every streets are going to close because we will prefer to buy the products in lower prices which we will get through FDI.

In India about one crore Kirana and departmental stores are existing and and average of 5 family members are dependent on one shop. No doubt FDI will create employment. If it will create employment for 10 lacs of people but on the other side due to this one crore of unskilled Kirana shop and local shop owners are going to be unemployed. So in my point of view FDI must me allowed in India but with certain limitation so that our people should not be affected.

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Soumen Bisui said: (Sat, May 30, 2015 02:59:50 PM)    
Hello guy's,

My opinion on this point of FDI in retail sector is good of our country because,

1. It is give more job opportunity.

2. It is also help skill development of youth generation.

3. It also remove monopolistic market system.

4. It can help more technology use in agriculture sector by the farmer.

5. It totally remove the middle man between cultivator and seller, that's is very good for rural people.

More person says that it is bad for small village shop but I mean to say that that is not problem because they are get good quality products in marginal range and also job opportunity.

If we seen the rural people, where to go for glossary market, we can see the most of people went to this shop which seller good relationship with them. They can not seen the price value, and quality.

Therefore I can says that FDI in retail sector is better for rapid development of our country.

Thank you.

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Biswajit said: (Fri, May 29, 2015 06:00:37 PM)    
Hello friends,

Today's India's most important problem is unemployment for which corruption is increased day by day. If, FDI is entered in retail market, employment scope is open for skill & no skills.

The middleman will be also destroyed & for the same as a result company will be more benefited & open scope for improvement of technologies & close the door of black market, fluctuation of market price by local dalals.

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Rohit Bazral said: (Wed, May 27, 2015 12:06:21 AM)    

I am Rohit.

According to me FDI in retail should not be allowed first of all we should know why we need FDI. Firstly it brings technology and secondly it brings infrastructure but in the retail sector there is no need for any groundbreaking technology and any extraordinary skills to run this sector.

Moreover the big tycoons like Walmart will become bane for small Kirayana stores whose business will be hardly effected. Even FDI in retail was not welcomed in Germany.

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Ganesh Suryawanshi, Vikhroli- Mumbai said: (Mon, May 18, 2015 06:37:18 PM)    
Hello friends,

FDI means Foreign direct Investment & we are discussing on FDI in retail sector.

Currently, the retail sector is unorganized. The customers are going to only those shops where his long lasting relationship exist hence the retail sector is based on relationship & not on the price, quality or the service.

If FDI comes in retail the entire scenario of this sector will change as the technology in retail will come to India. It will generate lot of opportunities in skill & as well as unskilled jobs. Infrastructural development of country will takes place.

The price & quality competition will increase & that will definitely helpful to the end customer. The logistic part of the transportation will be optimized & the cost of transportation will come down & the benefit will be passed on to the end customer.

The carbon footprint will be reduced if the number of trips of the vehicles are reduced. Hence FDI in retail will definitely benefit to India.

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Varsha Chauhan said: (Mon, May 18, 2015 02:30:53 PM)    
According to me FDI should come in India because it gives new technology and skills, unemployment condition is also reduced. But everything have some disadvantage because everything or everyone is no perfect such as this condition is also here to come FDI it effect our culture, environment etc.

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Deepak Sharma said: (Fri, May 1, 2015 02:44:31 PM)    
FDI is good to some extent for the development of the country. It brings about the new technologies and capital which is otherwise not available in the country. In the era of globalization, the world has become a one big family and sharing of technologies and capital with other countries are a win win situation for both the countries.

Indian retail sector is not as organized as the western world. This sector depends much more on the small shopkeepers who share a kind of relation with their customers so that the customers do not go for the other vendors because the people have faith in their shopkeepers.

But this thinking of the people of this country is changing as more and more people are migrating from their home cities to others for the sake of employment or other better opportunities.

So they lack the relationship that was used to maintained with the shopkeepers in India. FDI in Indian retail sector will not bring any new technologies with it but will allow large multinational to end a chain that lies between the manufacturer and customers.

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Kundan Kamal said: (Sun, Apr 19, 2015 11:01:55 AM)    
Hello Friends,

My opinion is that FDI will lead a important role to developed our country, because at the current time India is known as development country not developed, whereas in India the percentage of youth is 60% and 50% youth are unemployed, It can be overcome by the FDI.


1. If Foreign company invest his money in India then it create a large number of job for skilled and unskilled people.

2. It create a competition in market then farmer and people are get the job at low rate.

3. All people aware about new technology, and they could be learned.

4. It can made a good environment which can helped to change the mentality of people.

But we are also know that if foreign company is established any company in India then it not men that they want to develop India, They are only want to get a huge profit. In that situation they can harm to our resources or destroyed our resources.

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Suraj Chauhan said: (Thu, Apr 16, 2015 12:20:02 PM)    
In my opinion FDI is a very great tool to increase our country economy and I believe that when a large number of countries are come to do business in India. Large number of people required to fulfill the requirement so large number of vacancies created means large number of people get job.

Unemployment is one of great distrust which stop to develop our country. Due to FDI some people loss their work but in comparison to getting large number of people it is very less.

Thank you.

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Bharati Dharigoud said: (Thu, Apr 16, 2015 11:54:03 AM)    
In my opinion if we permit to introduce FDI in retail sector. India is becoming most favored retail destination in the world. Today retail sector contributing 10% to country's GDP. Indian retail industry is ranked among the ten largest retail markets in the world. The change of attitudes of Indian consumers and the emergence of organized retail formats have transformed the face of retailing in India.

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Sridevi said: (Wed, Apr 15, 2015 12:35:38 PM)    
FDI will lead to job losses. Small retailers and other small 'Kirana store owners' will suffer a large loss. Giant retailers and supermarkets like Walmart, Carefree, etc. Will displace small retailers supermarkets will establish their monopoly in the Indian market.

Because of supermarket's fine tuning, they will get goods on low price and they will sell it on low price than small retailers, it will decrease the sell of small retailers jobs in the manufacturing sector will be lost because foreign giants will purchase their goods from the international market and not from domestic sources.

This has been the experience of most countries which have allowed FDI in retail. Although, our country had made a condition that they must source a minimum of 30% of their goods from Indian micro and small industries, we can't stop them from purchasing goods from international markets as per WTO law.

So after coming to India, they can reduce this 30% by litigating at the WTO.

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Bharathi said: (Tue, Apr 14, 2015 12:09:52 AM)    

In my view having FDI in India is very necessary. But in retail industry its not good. Mostly there is unorganized sector in retail market. Many people will become unemployed comparing to creating of employment opportunities. Why we should depend on foreign country to help our farmers. Our govt can provide cold storage and warehouses.

Many infant industries are there in India and they can't compete with the international markets. Rather than giving incentives to foreign firms government can offer to our people and make them to compete with international markets in future.

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Abhi said: (Mon, Apr 13, 2015 02:02:44 AM)    
FDI provides.

1. Initial inflow of foreign capital and funds.

2. Transfer of skills and technology.

If FDI is such a great thing, why not open it for all sectors? To understand this, we first need to look at why Companies actually go and invest abroad. Answer is PROFIT.

Everyone knows that in long term, the initial inflow of foreign funds, will eventually turn in outflow of funds. In my standpoint FDI for retail sector is not good for India.

So Why need FDI? Real benefit of FDI is "transfer of skills and technology".

In my opinion, India has skills and technology required for retail sector.

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Shalabh Saxena said: (Tue, Apr 7, 2015 11:13:20 PM)    
Foreign Direct Investment means foreign companies provides goods as well as services to another i.e. beyond the geographical boundaries for the benefits of the users of things. Globally we can acquire the commodities for satisfying our need. Its good for the development of the country.

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Aishu said: (Thu, Apr 2, 2015 07:52:49 PM)    
Hello every one! In my standpoint FDI is very useful to our INDIA. Because INDIA is a developing country. But our government keep restrictions for some years what I mean is if restrictions are present it is very useful to our country.

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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.

Rate this:   +15   -31

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.

Rate this:   +45   -20

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.

Rate this:   +25   -4

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.

Rate this:   +19   -4

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.

Rate this:   +10   -10

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.

Rate this:   +38   -5

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.

Rate this:   +9   -48

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.

Rate this:   +11   -8

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.

Rate this:   +10   -4

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.

Rate this:   +31   -6

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.

Rate this:   +67   -13

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.

Rate this:   +12   -2

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.

Rate this:   +8   -4

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.

Rate this:   +19   -6

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.

Rate this:   +4   -8

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.

Rate this:   +3   -29

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.

Rate this:   +139   -9

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.

Rate this:   +16   -8

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.

Rate this:   +5   -13

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.

Rate this:   +24   -3

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.

Rate this:   +14   -7

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.

Rate this:   +6   -8

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.

Rate this:   +7   -2

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.

Rate this:   +16   -5

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.

Rate this:   +8   -2

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.

Rate this:   +50   -6

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.

Rate this:   +5   -5

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.

Rate this:   +16   -3

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.

Rate this:   +25   -3

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.

Rate this:   +14   -9

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.


Rate this:   +11   -7

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.

Rate this:   +41   -8

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.

Rate this:   +3   -7

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.

Rate this:   +120   -16

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:   +5   -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:   +47   -5

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   -3

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   -4

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:   +116   -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   -8

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   -5

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:   +144   -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   -11

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:   +92   -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   -9

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:   +147   -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:   +11   -3

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