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

Hello, everyone.

All of you said very well.

I respect all your opinion.

But according to my point of FDI in India is good. Because they invest much-needed money it leads the nation economically strong as the Europian countries. India is also suffered from unemployment problem FDI creates job opportunities for the nation. FDI makes the competition in the market increases because of everyone like become no 1 that leads the Indians also put more efforts to produce the quality of the product. This competition in the people will get the quality of product with cheaper rate. We also get a more tax from FDI that leads economically strong. Govt make strict rules it's definitely more helpful.

In my point of view, FDI is good for Indian economy. It will benefit the whole country in various manners. First and foremost it will bring a lot of employment and bring a lot of competition among companies. It will help in improved product quality and more reasonable pricing.

> Until 2011, FDI in multi-brand retailing was not allowed in India.

> In 2012, 51% FDI was allowed in multi-brand retailing, opening doors for international companies to show their presence in retail sector.

> This has helped to rope in new skills and new technology in the retail market.

> In 2015, 100% FDI in single brand and multi brand retailing was announced by the Modi Government.

> FDI makes this particular sector more organised.

> Foreign exchange brings a boost to Indian rupee.

> Increases employment, and competition.

> In countries like India, Malnutrition is a major problem. Whose direct or indirect cause may be the unhygienic or improper storage of goods in the retail outlets. The presence of foreign companies assures a better product improving the quality of product available for end customer at affordable prices.

> Therefore, Foreign Direct Investment in retail sector is a boon for India.

I think its good for Indian GDP as it can boost the current GDP speed moreover different industries will be investing and providing employment in India.

Technology dependence on foreign technology sources is just the facade that has been created to build a political case to avoid FDI in retail, lot of this software that run in the background are being made and serviced through the IT companies that have their bases in India which in a way is a source of employment to our fellow countrymen. Currently, rise of inflation in commodities is largely due to Agri sector's heavy dependence on seasonal rainfall coupled with various middlemen in the supply chain who hoard the commodities contributing to high levels of inflation. Creating a leaner supply chain in marketing will ensure that goods are reaching the consumer directly from the producer or manufacturer. With more middlemen involved in the supply chain, we end up adding their margins to the end cost of the commodity at the time of purchase by the consumer.

Moreover looking at the consumer behavior and the demography of the Indian market small retailers will always have a prominent place. Certain examples of placing my point; Indian consumers by and large depends on touch and feel of the product before buying it. Particularly the everyday fast perishable items that we consume like Milk, Veggies, and Fruits we always prefer to go to the local store and pick up. Certain products that are needed immediately or are unplanned purchases, I would resist driving 3 km's to a mall to purchase it, I will largely depend on the corner store to complete my immediate need. Another glaring example of the divide in the Indian society or I must say the rich and the poor divide, the Indian middle class will perhaps go to the mall for their planned purchases, however the daily wage earner will still depend on the local Kirana store to fulfill his daily needs, it again is the source where this daily wage earner can pick up his ration on credit as well.

More than 270 million people are currently a part of this sector that is largely unorganized. With FDI in retail the same shopkeeper has an opportunity to be a part of the organized sector with access to more products in the portfolio. This sector will bring with it the warehousing technology such as RFID in its supply chain thus ensuring transparency in the entire system and ensuring that all the taxes direct and indirect are paid which contributes to the growth of the economy and infrastructure needs of the nation. In the unorganized sector currently a lot of this is going unnoticed leading to evasion of taxes that robs our government access to funds that are necessary for development. As for people losing employment due to mega stores opening up, I have a different take, the same people will be an asset in the organized retail sector owing to their extensive experience thus generating employment for people.

Hello everyone, its a very good topic to be discussed I want to say that FDI in retail sector is good for developing country because it will help to generate tax revenue which can be utilized in other sector and at the same time it will increase employment opportunities and people will get variety of product at less price and the important part is that farmer will be benefited by this because of the elimination of middlemen from retailer to farmer the organisation will buy product direct from framers and they will get fair price for their product but at the same time the government must put certain restriction and proper strategy to support farmers and poor people like the benefit should not be limited to big organisation.

Before starting, first we need to understand what do we mean by the term FDI. FDI i.e., foreign direct investment is the investment by any foreign country in home country here India. This FDI can be fully owned by foreign player who wants to start business in India. Also, it can come under joint partnership with any private player of that country.

Now coming to the pros that why FDI in retail sector is good for country India. Firstly it enhances competition in the market which lessens the price of the goods, that is the consumer starts getting best quality at cheaper rate. Secondly, consumer gets lots of option to choose from that suits his/her budget. Thirdly, by bringing in foreign entity, it leads to the regional development of the country, thus leading to more employment opportunity for the people and also improving quality of life of the people.

Now, looking at cons, that why FDI is not good. As we can see our markets are already filled with Chinese products which are far cheaper than the Indian goods, and thus the price point at which these Chinese products are made has no match with the Indian goods. Thus, this has resulted in the shutting down of lots and lots of Indian companies due to failure. So, in my opinion, there should be FDI, but also there should be check in the products so that our own companies do not collapse due to foreign goods at cheaper rates.

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.

In my point of view, FDI funds should be help for poor people. People in High sectors are taken the most of the funds from Foreign for their needs. Corruption increased all over in India. That's why India is still Developing country.