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

Hi Friends,

As per My opinion, FDI helps the economy for short time period.

If country is self-depended then it takes lots of advantages.

Likes increase the value of currency in the world.

Everyone get the job by developing the industry in Indian company.

Hi, FDI is good for India. Many countries would like to invest in India because India has the huge young power and a very skilled people. So they would invest in India. It really helpful to India, as they invested, the people of India would get the employment opportunity, the Indian market value plus economic growth would be developed. And they introduce innovative technics and make technology easy and simple. Of course the investors also earn more apart from that they contribute to our country too. Therefore I wish FDI is really good for India.

Hi friends, good afternoon.

The word FDI sound interesting to some people because they are considering few good point about that but we should talk about consequences of FDI too. It will help our country to generate employment at the same time increasing the burden on Indian companies. As we know India youth population is highest in all but in quantity not in quality, so FDI going to help us to train and to make our quantity skill so to make India house of quantity and quality.

As far as, India is concerned. The direct investment of foreign is quite good because it increases competition in the retail market and indirectly it improves the quality of product. Monopoly in market can be removed.

Yes, I think it's good for India as FDI creates a lot of employment opportunities within the country and moreover whenever there is a competition there are always better products in the market. So anyway this is a win-win situation for the Indian economy as well as for the product consumers plus the opportunists!

Yes, FDI in Retail Sector good for India. FDI is necessary for Indian economy growth. It will help to generate revenue taxes as well. Huge competition in market will lessen price of products so the customers will get good products in cheaper price.

On the other hand Mom and Pop stores will also face challanges which are not good for those who are unable to afford to visit malls, adding to that who often buys products on credit from mom and pop stores.

Yes, There are so many benefits in the country like increase employment opportunities, increase exports, good effect in national income etc.

Hello everyone,

I am Rajwardhan.

While Foreign Direct Investment (FDI) brings certain advantages, such as technological advancements and improved infrastructure, I believe that large-scale FDI in India's retail sector poses several challenges. India's market, being one of the top five globally in terms of consumer base and retail opportunities, requires a balanced approach to FDI. Here are three significant concerns:

1. Threat to Local Industries:

Local manufacturers and businesses form the backbone of India's economy. These enterprises may find it difficult to compete with multinational corporations (MNCs) that possess advanced technology, vast resources, and efficient supply chains. The dominance of MNCs could lead to monopolistic practices, which would marginalize small and medium-sized enterprises (SMEs) , potentially pushing them out of the market.

2. Economic Drainage:

FDIs, being foreign investments, often result in profits being repatriated to the investor's home country. While FDIs can initially boost economic activity, the long-term effect might be an outflow of wealth from India, enhancing the GDP of other countries rather than ours. This could lead to a net economic drain, undermining India's economic sovereignty and growth prospects.

3. Impact on Employment in the Unorganized Sector:

The unorganized retail sector, which includes Grocery shops, pan shops, and small vendors, employs a large portion of the semi-skilled and unskilled workforce in India. The entry of large retail chains could lead to the displacement of these jobs, as smaller businesses may not withstand the competition. This would not only increase unemployment but also disrupt the livelihoods of many families dependent on the unorganized retail sector.

In conclusion, while FDI can contribute to economic growth, granting complete liberty to FDIs in the retail sector is not beneficial for India. The government must implement regulations to protect local businesses and ensure that the benefits of economic activities remain within the country. Initiatives like "Vocal for Local" and "Atmanirbhar Bharat" are crucial steps toward fostering self-reliance. By supporting local manufacturers and MSMEs, we can drive sustainable economic growth and elevate India to new heights.

FDI brings competition in India, in my point of view, it increases the large scale sectors. It should be implemented in small scale sector India will become developed country.

In my point of view, bringing FDI up to a certain extent will no doubt boost the competitive market in India as it will bring more potential among companies for better quality and competition makes them grow faster and thus generate more employment which is necessary for a developing country like India. But it should have a limit for this because 100% FDI will affect the middle-income people and small businessman which is of large percentage in India and will increase the gap between rich and poor.

So in my conclusion, FDI is good if it hasn't any adverse effect on the small businessman and low-income people.