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

FDI is Foreign Direct Investment in which a company which has its base outside India will set up its branch in India and start doing buisness. It can be advantegeous from point of view of consumer and goverment. This is because because of FDI many companies will come to India with their own products thus the customers will get a wide variety of choices and in terms of prices, and from the point of view of government when a MNC will come to India then it will buy land and give taxes to our government which will increase our economic growth. The other merits of FDI is that when a company set up its branch then it will introduce new technology so in order to operate these machines it will hire people thus it is providing employment to the youth and at the same time exposure to our young generation. But as we know every coin has its two faces in a same way there are some cons of introducing FDI in retail sector as for example if it is providing employment to our youth then at the same time it is a major cause of unemployment as it will ruin our small scale industries which is directly or indirectly employing lakhs of people so if these industries are closed then a huge amount of people will get unemployed.

Thus in conclusion we can say that FDI should be introduced in some percentage in retail sector not 100%.

Some strict rules and regulations and at at the same time government should support the local industries until.

They get economically strong so that they can compete in the global market.

Hello friends, in my point of view the F.D.I means foreign direct investment would be done in our India because when a foreign industry come in India to setup their branch in India first of all they buy a land and they pay a tax to government this is the first reason, then they build the infrastructure of their industry so they can hire a builder and builder also earn money from them this is the third reason, then they would buy a machine from the machinery store so the store will also earn money this is the fourth reason, they employee workers which help them too producing goods so our people also get job by them this is the fifth reason, so all these reasons are true and valid which I gave in above lines. So, in my opinion, F.D.I. (foreign direct investment) must be done in India. So thank you for reading my points.

FDI in retail sector has its own advantages and disadvantages.

Let's first talk about the positive side. Foreign investment in retail sector will give consumers lots of varieties in every products. Employment will also increase which is a big problem of present India. FDI will increase competition and Indian industries will also grow with higher rates because now they can also invest in other countries. For establishment of FDI, our government will get very high taxes which can increase our economy.

Disadvantages:

For developing countries like India where productions is mainly through small industries. Due to big MNCs companies, they can't stand and will be vanished that will decrease the employment. Also, FDI will start controlling the prices of product. For example cocacola worth is just, 1 but they can sell it at much higher price easily.

So, I think FDI is good but only in some sectors where we can learn from them and can compete them. Also Indian government should encourage small industries to use new technology and as India has low labour cost we can produce things at lower cost than foreugn countries.

Every coin has 2 sides. So if we talk from customer's point of view, FDI in 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 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 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 retail sector should be prepared less, as it will hamper one of the initiatives taken by Prime Minister "Make In India". In 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.

Hello guys,

FDI means a company or a corporation which is established outside India is investing in Indian market by forming a joint venture company, wholly owned subsidiary company or otherwise.

FDI in retail sector has both advantage and disadvantage.

The advantages are available mostly to the government and consumers.

High sales mean high revenues and accordingly to the government will get high taxes from the foreign company. Consumers can select from a large variety of products and also have the advantage to buy cheap products.

The existing large scale industries of India can cope up with the competition from a foreign company, but our small-scale industries may find it difficult to compete.

1. Integration into global economy: Developing countries, which invite FDI, can gain access to a wider global and better platform in the world economy.

2. Economic Growth: This is one of the major sectors, which is enormously benefited from foreign direct investment. A remarkable inflow of FDI in various industrial units in India has boosted the economic life of country.

3. Trade - Foreign Direct Investments have opened a wide spectrum of opportunities in the trading of goods and services in India both in terms of import and export production. Products of superior quality are manufactured by various industries in India due to greater amount of FDI inflows in the country.

4. Technology diffusion and knowledge transfer " FDI apparently helps in the outsourcing of knowledge from India, especially in the Information Technology sector. Developing countries by inviting FDI can introduce world-class technology and technical expertise and processes to their existing working process. Foreign expertise can be an important factor in upgrading the existing technical processes.

5. Increased competition - FDI increases the level of competition in the host country. Other companies will also have to improve their processes and services in order to stay in the market. FDI enhanced the quality of products, services and regulates a particular sector. Linkages and spillover to domestic firms- Various foreign firms are now occupying a position in the Indian market through Joint Ventures and collaboration concerns. The maximum amount of the profits gained by the foreign firms through these joint ventures is spent on the Indian market.

6. Employment - FDI has also ensured a number of employment opportunities by aiding the setting up of industrial units in various corners of India. So according to my knowledge FDI is good for India. Because it helps to utilize the resources of our country, provides job opportunities and helps to build our country strong in economically.

In my opinion, FDI to some extent is good for our country as it creates job opportunities for the youth. There will be a healthy competition between the foreign companies and local companies to capture the market which is good for the customers as they will get better quality products at cheap rates. But as we know that it has some drawbacks also as it directly affects the small scale industry in the country and the local retailers also. So it is very important that small scale industries should also be empowered by the government as we can't rely completely on foreign companies and we need to become self-sufficient which is very important for any country to achieve growth.

Hi friends.

As per my opinion, everything has pros and cons.

So positive impact of FDI:

A) It will surely boost the economy.
B) it will generate the employment but only in MNC;s because the investment will not be done in the unorganized sectors.
C) It will make the India a huge market in terms in every feild.

Cons-.

A) Generate more unemployment because it leads the downfall of unorganized companies.
B) threat to startups because majority investment will be done in established companies.
C) India market will lose its value.

Suggestion:

A) some part of FDI should be in unorganized sector and startups.

As per my perception it's totally unjustified to allow foreign direct investment even in retail sector because it can cease the chances of indigenous company to grow. And also one of the most important thing is that India will have a smooth economy when it's export would exceed import. Further I would like to correlate this incident with our history.

I would like to take a flash back to our history that British had also come in India in disguise of investors but later on they captured India deceitfully and ruled over India. So keeping in mind old incidents I would like to emphasise that some restrictions should be imposed on foreigners in context of their investment in retail sector. Am not saying that FDI is not a good thing but there should be some restrictions over it.

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.