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

Hello friends, according to my point of view FDI is not good for India because if we allow the FDI then the Indian market goes down and the job opportunity for Indian people become less. India is the 2nd fastest economy country in world. So we can create our own investment and spread through the world. Then the market of a Indian investment will go high and the job opportunity for Indian people is also high.

As you can see example of Patanjali (Ramdev Baba products). After launching the product Patanjali Maggie, the selling of a foreign brand of Maggi is gone down. This is best example and you can easily understand and banned the FDI product.

Thank You.

Every Coin has two faces just like in FDI too.

Good faces:

1. Give opportunities to young blood to work with them and learn new technologies.
2. Better quality product.
3. Economic growth.
4. Graph of employment is increasing.
5. Competition increases.
6. Better living condition.

Bad faces:

1. Indian investor hesitates to compete with them.
2. Local brands could not breathe in freely.
3. An entrepreneur could not develop their market.

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.

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.

FDI is always welcomed in a Capital deficient Country like India but as far as FDI in retail sector is concerned, there is a lot discussion for and against the motion. Let's have a little look about that;

Arguments by those who favours it -.

1. Allowing FDI in retail sector will create millions of employment as some Giant MNCs like Walmart and Tesco will come and open their Malls and they will need man-force to operate it.

2. Customers will be able to find almost all their required items under one ceiling. They don't need to go from one place to another. It will save their time and efforts and at the same time will decrease fuel consumption as well as traffic congestion and help improve the environment (Pollution). I think this is more important for us at present.

3. Land in the centre of the city is very expensive so big MNCs may establish their building a little far from the centre (Must be connected with proper transportation). Thus, a lot of traffic will divert from centre to outside.

4. India will get a huge investment which will not only generate employment but revenue as GST and other taxes.

5. The competition will increase and thus customers will get better services. Customers will get products on competitive prices.

6. MNCs will buy retail items from India and thus can boost our domestic industry and generate employments indirectly. If they require, they can buy vegetables (to sell) from the farmer directly- this will help farmers get more prices for their products. Thus, help to double farmers income.

Arguments against it;

1. It will directly impact the employment in retail shops. The shops whose income will get down and not be able to pay even rent of shop building, they will cut man-power or it may be possible that they stop their shop.

2. There are more than 650 districts and around 4100 cities (administrative units) in our country. Suppose at least one such a big Mall is opened in each of cities give job to 50 people (the number can vary- it just an example), then 4100 Mall will give employment (Direct jobs) to 0. 2 million people almost. On the contrary, In our 13-14 million retail outlets (Wikipedia) suppose each gives the average job to 5 people (as there are some little big outlets and some small outlets) , then this sector may give a job to 65 to 75 million people (direct jobs). So the point is, FDI in retail sector may impact the livelihood of these 75 million people (not necessarily all).

3. A mall consumes a lot of electricity. It will increase the demand of electricity. To fulfil their requirement, we need to increase production which is still based on coal-based thermal power-plants (unhealthy for our environment). Thus will increase pollution (water, Air).

4. Big malls will impact competition environment in future. Some big malls can keep their prices less and get their rivals to throw out of the market and then can increase it (price). In absence of competitor, they can charge more prices on products (of course not more than MRP).

5. They can import all their needed retail products from abroad and thus, can destroy our domestic industry. It will result in more unemployment. (Govt. Can put a condition to buy at least some portion of their products from India).

Suggestions-.

1. We should allow FDI in the retail sector but there should be some limitations on it. Like as an experiment, we should allow some MNCs to open their mall in some districts in a state or in any Union Territory (no opposition from states in UTs) and then observe and examine how these MNCs impacting the retail market (retail shops) there. According to this experience, the Government should take further steps whether to allow it in the entire country or not.

2. No doubt, it will create employment but at the same time, it can generate unemployment on other places. So We have to deeply consider its pros and cons and then take any step.

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.

FDI is basically the investment done by the parent company in the host country. FDI is more secure way of raising capital. More of FDI in India will eventually help the country to grow at a rapid pace. It will boost the economic growth within the country and will establish globalization in a better way than usual. GDP will also improve and hence the national income. FDI in every aspect will help the country to grow. At beginning, it might affect the small businesses, rural areas in country but in a long run it is beneficial for the country.

Indeed, FDI plays a vital role to surge our economy. Foreign companies not only provide their technology but also creates a level of competition among domestic as well as with other foreign companies. Moreover, there should be a certain limitation that these foreign companies shouldn't influence the domestic market.

For instance, Amazon is totally killing the market of Flipkart. Most of the product are available in Amazon with more discount as compared to Flipkart. There should be proper equilibrium so that Indian companies wouldn't be influenced.

May be or may be not. If we look from customer's and Government's point of view than Yes because a consumer can got a lot many choices and government will earn revenue in terms of taxes.

But a local retailer may not be benefited because it will decrease it's market share.

Hello everyone. FDI ie. Foreign direct investment is investing in a country by the companies of foreign country. In my opinion, FDI in retail sector is beneficial. As it increases the GDP of our country, give more employment opportunities to people of the country, make the market more competitive so the companies of our country also make its performance better, give consumers more choices from all over the world at competitive prices, raise the standard of living of people.