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

Hi Guys,

Yes, "Foreign Direct Investment (FDI) in retail sector is good for India" because India is a developing country and there is need of these types of process as these are helpful to grow our nation towards best possible manner. With the help of "FDI" not only money comes but also many things come from country to country and each thing becomes useful for the nation whether it be technology or any better idea for manufacturing process. Customers always try to find out better things at lower price and this particular mind set up is possible with the help of "Foreign Direct Investment".

As we all know that unemployment still is the biggest problem of our developing country and FDI is one of the best way to overcome this problem from the stages. Retail sector is that sector which interacts directly with the consumers whether it be on line or off line overall I can say that all benefits are being received by the end user I mean end user is effected directly under this process.

And on base of these types of investments there is a healthy relationship which is improving day in day out among the countries that is strong bone of this business. Because a spread relationship many ways open easily to do multiple things at a time.

Finally, Foreign Direct Investment (FDI) in retail sector in India is magic stick through many problems are going to solve from the nation.

Thanks.

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.

Hello everyone, today's topic is very much relevant and important in current economic scenario of our country. FDI no doubt plays a vital role behind surge of economy. Now India is one of the e country where retail market is prosperous and evolving day by day. This of course is possible due to FDI in this sector. Now govt allows 100% FDI in multi brand retail as long as the product made in India. By the hand of online shops like Amazon, Flipkart, Bigbusket etc retail market is now being controlled by FDI. It includes food market to electronic market. This is boon for growth. Departmental stores or big shopping mall surely generates employment. Every commodity comes under tax, natuarally when we go to supermarket to bye a product, it may be a pen or a detergent soap or vegetable or fish, we are paying tax for that commodity which in turns boosts the govt income. This is boon for development of a country. But in the other hand small shop owners like grocery to vegetable vendors in neighboring market lose their customers. They can not compete with big investors naturally. Govt should think about them because big investors in retail market in one way or another snatching the bread from their mouth. And growth of a country depends on better living quality and better earning from every section of the society.

Hello everyone, as far as the FDI in retail sector is considered I am partially against with it. First of all, I would like to tell you all the growth of the economy through these business affects the life of three groups of people in three different ways. If we have to decide whether the result of applying such business strategy will flourish or not then we will need to decide that which group will face the atmost impact and thus we will realise it is beneficial or not. I would like to tell you all that a survey from NCARE claims that middle-class people in India is about 267 million, far greater than rich people but less greater than poor people. Hence the opportunity of jobs for the middle-class people will increase at the same time among these middle-class people about 30 percent people have local shops or kiranas. For these people their shops are considered to be the source of livelihood. These people will suffer serious loss if super malls or malls replaces them.

Why one will buy things from these if can it from a supermall with more varieties. Apart from that, FDI will increase the difference between the rich people and the poor people.

Indian economy depends much on middle-class people but if these people will get poor, the will be quite different from growing India to suffering India.

Foreign Direct Investment (FDI) in the retail sector offers several advantages for India, including boosting the economy and employment, improving supply chain and infrastructure, providing consumer benefits like more choices, competitive prices, and better quality products, access to global brands, and improved customer service standards. However, there are concerns about the threat to small Kirana Stores and traditional retail, the potential for market domination, the impact on domestic retail chains, potential farmer exploitation, and cultural and social concerns.

In the short term, FDI in retail can bring investment, technology, jobs, and consumer benefits. However, in the long term, strong regulation is needed to prevent exploitation of small retailers and farmers, maintain healthy competition, and prevent monopolistic behavior. India must frame policies that protect small retailers, enforce fair trade practices by foreign companies, ensure technology transfer and job creation, and prevent monopolistic behavior.

In conclusion, FDI in retail is beneficial for India if implemented with safeguards, modernizing the sector, and benefiting consumers. However, without proper checks, it may harm small shopkeepers and farmers in the long run.

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.

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.

FDI invests in India and gives the better opportunities and enhanced technologies to Indian peoples. It's good. But after 2-3 year company decide to increase the value of product and it's service. If it is not done by government then the owner of company decided to block the marketing then we to purchase the product from other country. That's very bad for Indian market, employees, GDP, consumers, Indian economy etc. I think not go through FDI.

India is the country of youth. So block the FDI in country and to decrease unemployees, Indian government to start programs in which there is 50-50 percent partnership between government and peoples. It will better to use skill and ideas to do public and for people beneficial. It will remove the hesitation of people to invest money in market.

Advantage:-

* Wealth of India in its control.

* Wealth of India is in country itself.

* GDP increases.

* Better job opportunity for peoples.

* Decrease unemploys.

* To see India as developed country as US, China, Japan etc.

* Currency will be strong respect to other.

* Better understanding between government and company.

* Reduction in other country products.

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 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.