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

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175 comments Page 1 of 18.

Aditi Dutta said:   3 months ago
Hello everyone,

I want to share my opinion on the increase of FDI. According to me, it has positive as well as negative sides both.

It gives a positive effect on multinational companies in India. They can expand their business also employment opportunities will increase because of it. Direct foreign capital increase the dollar flow in India which may cause of development.

But on the other side, it gives a negative effect on small and medium businesses. They can't stand up against multinational companies. As in India most of the people are belong to small and medium businesses they will suffer a lot.

To draw a conclusion I think an increase in FDI is needed but it has to be utilized properly keeping in mind of small and medium businesses. As most of the GDP is produced by them.

Thank you.

Suhas said:   4 months ago
Hello Everyone.

In my opinion, FDI will surely help increase employment opportunities, And GDP will also increase. But the small-scale business will get affected. The company will start manufacturing units in India And export the products to different parts of the world.

By which there will be a hike in the price of the products they sell. Because of the hike in the raw material, Small-scale businesses will face tough competition And loss.

Because of the FDI, We cannot call the products made in India. Only the products are made in India, But still, the company is owned by a foreign company.

Rutuja Sonawane said:   12 months ago
Definitely, FDI will increase dollar cash flow, development of the human resources, and employment opportunities for India but as a developing country, too much dependence on FDI is bad for India. Our Indian economy's major part is based on small-scale businesses and with this, 40% contributing sector of our economy will suffer a lot because of FDI. With the cash flow, FDI will also lead to Inflation over a period of time. In my opinion, Foreign direct investment is not as beneficial for India as developed countries. FDI can have more negative impacts on India's economy, human resources, natural resources, and politics.

Pranjit said:   2 years ago
India is the one of the largest economy in the world. Through out FDI has more impact on the retail sector due to monopoly.

Sohan said:   2 years ago
Hello everyone.

Myself Sohan Kumar. Our group disscusion topic is FDI.

In my opinion, yes it very benefits for a country like India where the majority of the people has come under the middle class and poor classes. FDI help in bringing the price of object low and it also helps in an increasing job opportunity for the people. It will increase the competition so that we can get things in a low amount. It also helps in increasing the economy of the country.

A.R.Prusty said:   2 years ago
Hello everyone.

I am Akash.

I believe large scale FDI invasion is bad for India. India's market is one of the top 5 markets in the world, in terms of consumers and retailing opportunities. There are a plethora of negative impacts of letting FDI to the Indian retail sector, but I would like to mention only three of them:-.

1) India local manufactures and businesses won't be able to compete with these sophisticated MNCs. Ultimately it will lead to the monopoly of these MNCs over the retail sector.

2) FDIs are foreign investments and by giving them liberty over our retail sector, we are increasing GDP of some other countries, not ours. It drains away from our economy.

3) The unorganised retail sector like kirana shops, pan shops, etc gives job opportunities to a lot of semi-skilled and unskilled people. While they might lose their jobs if FDI comes in the retail sector.

So, I conclude complete liberty over the retail sector is not good for India. The government must regulate FDIs. I appreciate Government step to be " VOCAL FOR LOCAL " to make India self-reliant or "atmanirbhar". Let the local manufactures and MSMEs uplift their business and take India to new high.

Vishal kadian said:   3 years ago
Every coin has 2 sides. So if we talk from the customer's point of view, FDI in the retail sector will be beneficial as we will have varieties of products with good quality.

And Talking from local seller's point of view, FDI will be a hindrance to our business as there will be stiff competition from foreign companies which can lead to falling in revenue for our business.

And lastly, talking about the impact on job opportunities in India due to FDI, so at present India is doing pretty well in terms of maintaining relations with foreign countries, then be it importing electronic goods from China, importing crude oil from Saudi Arabia etc but the unemployment rate in India still remains unaffected at 5.7 and now it has been found that in 2018 it will increase to 5.80.

So, According to me, FDI in the retail sector should be prepared less, as it will hamper one of the initiatives taken by Prime Minister "Make In India". In the case of FDI, mostly foreign companies will prefer to employ their own people and make products in their countries and selling it to Indians earning huge amounts of profit.

APURVA said:   4 years ago
Yes it is essentially required for a developing country like INDIA. To start with, I want to comprehend the fact that we grow as a person by learning new things but in a disciplined manner. In the process of learning new things, we should not deviate from the primary objective of our life. A similar rule can be applied for the introduction of FDI (foreign direct investment).

Foreign direct investment can be made through single retail or multi retail stores. The government has allowed 100% ownership stake for single brand retail foreign direct investment and upto 51% ownership stake for multi brand retailers. And in addition to that, a minimum Rs 500 crores investment is required for investing in foreign nationals on multi-brand retail outlets.

It creates employment opportunities for many and is advantageous for the growth of logistics sectar as well. Apart from this, our farmers can also benefit from the advent of FDI in India as it creates greater transparency and they can get direct payment from those foreign players. It creates efficiency in the organised as well as unorganised sectar of the country. It prevents wastage of supply of perishable food items as they invest heavily in the construction of warehouses and cold storage facilities. It creates a strong infrastructural base for the country due to heavy capital inflow.

Disadvantages are very few though if we consider careful examination of the relevant facts and information. It definitely shifts a major chunk of our revenues to foreign investors. Plays a part in reducing entrepreneurial activities. Loss of livelihood of small retail owners. And last but not the least it is still hard to forget about the harm caused by east India company when they entered INDIA for exploring trade opportunities in the country and ended up changing the fate of the entire country, But exploring international opportunities isn't a bad idea when we want to grow as a country and improve the standard of living of its citizens.

CHANDAN KUMAR YADAV said:   4 years ago
Yes, I think FDI is good because as we know that Indian economy growing so fast it's the horizon of new sunrise nowadays but still we are in fiscal deficit FDI is the medium to fulfil this deficit. The retail sector is on fire E-commerce company increases so fast it needs an investment of money And FDI is a good option. Of course, FDI creates unemployment in our country so 100% FDI is not permissible at all. Small industries totally destroy by this big company which leads to monopoly in the field of retail business even though the competetion between the native company and foreign companies are very high this leads to a production of great quality product and goods it's the best way to improve the quality of goods and services because a healthy retail sector is alive only if the opposition has a great deal of benchmarking. Thanks.

Shikha said:   4 years ago
Hello everyone,

In my opinion, FDI should be increased in retail sectors in India as it will surely lead to the development of some new distribution channels which will, in turn, will benefit the customers only.

Secondly, due to the demonetization effect as well as GST introduction our economy is facing a huge problem in retail sectors as many people have even shut down the shops FDI will work as a motivation for them.

And hence better condition than now.

Also more the FDI more will be innovation in the retail sector which will cut down the unnecessary cost in distribution so no unnecessary addition to the cost of the product.

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