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

FDI is not good for India, India is made in India, we peoples are buying a ration rice from government for 2 Rs or free, why I am conveying above point means because of FDI.

Small investment owners are affected by FDI.

Hi guys.

Every coin has two sides. From my point of view its has merits & demerits also. But FDI will move towards more merits rather than demerits. Because of FDI we get more jobs, new technologies, growth, relation with other countries. FDI may affect slightly in the retail sector but not that much of influence. As we know in India we are suffering from unemployment. So FDI will give the solution to this problem somehow.

I think no it's not good, as this type of investment is affecting the middle-class business people severely. The opportunity for less educated people to start a small business is directly snatched away resulting into the affecting of GDP. The hard work of small towns people in retail sector become competitive with the big companies through their direct investment in retail sector.

No, according to me, it's not that much good for India.

I would like to go against full direct investment. Example take KTM - Bajaj joint venture. When we buy a bike a percentage of profit goes to Bajaj comparing to fully international company. Also when we work in FDI companies they only need to pay less wage (comparison with international wages) hence they are able to produce product at least cost getting profit. Ultimately they are only profiting. But when we take joint venture we have some profit and also control over company.

Thank you.

I think foreign direct investment is good for development of India. It will create job opportunity. But on other side it will not in favor of small-scale retailers because foreign companies like Walmart will provide goods on very cheap price so competition with these companies will not possible for small scale retailer.

It's good for India because it creates a value for an product which already exists. And then it makes an employment opportunity which was struggled by the Indian government. Then it improves an updated technology to survive the new market trends.

A coin have two sides likewise, it has demerits also which cause our domestic products.

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.

FDI invests in India is good. It has some disadvantages also but it has more advantages in compare to disadvantages.

1) It increases the employment by establishing plants in India.

2) it also helps to improve technology.

3) It also causes competition among industries/ companies, due to which customers get better quality of things at a reasonable price.

4) It will increase the value of Indian currency.

FDI in retail sector is positive in the sense that,

- Increases employment in host country.

- GDP of the host country will improve.

- Foreign currency inflow which leads to increase in foreign exchange reserves.

- Inflow of technical skills and knowledge.

- Competition will increase in d host market.

- Improved national income as it provides greater employment opportunities with lucrative salary (especially those with greater knowledge).

- Customer oriented products hence leading to greater customer satisfaction.

Cons:

- Generally, such firms engage in price wars. They force the home markets to keep their prices low as well even if it is unprofitable for them to do so. This is because such large firms with huge production base manage low cost through economies of scale and small firms lose on this.

- May misuse natural resources of the host country.

- MNC's usually end up bringing obsolete technology to the host country.

- A major % of retail sector in India is owned by small or middle businessman, who unable to meet the competition usually sell their business to MNC's. This in turn gives birth to a cycle of problems like decrease in Personal Disposable Income, employment opportunities etc.