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

Hello everyone.

As we all, know India started to liberalize its economy in 1991 so as to globalize Indian economy. Till now FDI has changed the way buisnees are run from pre L.P.G reform era. Regarding FDI in retail is concerned goverment has allowed 100% in single brand with some restrictions regarding local sourcing and 49% in multi brand retail sector. Retail sector in India is an unorganised sector with 90% or more business done by local shop owners such as kiryana shops , departmental store owners.

Benefit of FDI in retail sector could be:
1. Benefit of scales which further leads to reduction in cost and same product available at lower cost.
2. Improvement in infrastruture such as cold storage which in result reduces wastage from farm.
3. More tax compliance as organiszed player enter the market.
4. M.N.C which bring in FDI also integarate Indian economy with rest of the world which allows our product avilable in other country and vv.
As more FDI is coming in India we are moving towards organized retail market with players such as walmart, reliace etc

In my opinion, FDI to some extent is good for our country as it creates job opportunities for the youth. There will be a healthy competition between the foreign companies and local companies to capture the market which is good for the customers as they will get better quality products at cheap rates. But as we know that it has some drawbacks also as it directly affects the small scale industry in the country and the local retailers also. So it is very important that small scale industries should also be empowered by the government as we can't rely completely on foreign companies and we need to become self-sufficient which is very important for any country to achieve growth.

Hello, everyone.

I think FDI is a mix of good or bad in the retail sector for India. It should only be allowed relatively small percentage and not 100 percent. Yes, it is true FDI brings Job opportunities, technological advancements and much more. But we should not overlook the facts that it also has its set of disadvantage like it can control the prices of products both consumers and suppliers will be affected because of this, local shops will suffer too best example would be for this Walmart replacing local retail stores.

I am completely positive with FDI (foreign direct investment) it is good India if looking up on retail market there are lots of brands are out of India and they dealing good business with Indian customers one question is that how they've attracted our customers because they giving better price with better products which every customer like and second thing is that whatever we buy we gave tax to government whether it is Indian product Or foreign product if we are considering our economy points of view it helps us!

Second thing is that we knew which one is better product with better price for example the cost of Coca-Cola is less than 1 rupee and selling price of product is 9 or 10 so it will directly impact on USA economy.

In our point of view, FDI is good for growing up the economy. Foreign companies can invest money in India establishing it branches, it will create a huge employment opportunity as well as make an own indigenous product. Hence, it used to reduce the import from other foreign countries and increase the export. Our country GDP increase double times compared with past growth. The retailer is buying a product directly through manufacturer company with cheaper price. It will increase the making in India product with higher quality. We are ready to confront combat among the developed countries.

Firstly, it's important to understand what does FDI actually means. It means that a company from foreign country invests in one country to set up a buisness which would be helpful for them and for the country tuey investing too. Here, Retail sector is the part of country economy, a kind of buisness which supplies goods through store, internet etc. To buisness in our country, FDI was banned till 2011 then the government allowed the foreign investors. With FDI, our country's economy would develop which is very much necessary for a developing country. It also provides employment to youths in our country and somewhat of unemployment isssue would be solved.

Foreign direct investment is very important in our country because India is a developing country lot of things we need to develop India in present scenario facing many major problems such as unemployment poverty over dynamic leader pm Narendra Modi taken several steps to boost our country economy FDI will help India to the growth of the country.

Hi guys,

FDI helps to develop our country. For ex: If foreign investor like to invest in India then our country will grow in economy. But if our country grown more than US then obliviously the investor started to think to borrow money from India and invest in their home country. Another ex: China products, the people are more attracted on China products because of packing, cost, features of the products, etc. This is not helping to our country economy to grow.

Finally, India should not depend only on one thing like FDI. If FDI is not there then choose other option to develop our country.

In my opinion, yes FDI is good for our country; as India is a developing country and it needs more development work over here, for that foreign investment is required in our economy which creates employment and help in reducing to the problem of poverty.

Hello friends, in my point of view the F.D.I means foreign direct investment would be done in our India because when a foreign industry come in India to setup their branch in India first of all they buy a land and they pay a tax to government this is the first reason, then they build the infrastructure of their industry so they can hire a builder and builder also earn money from them this is the third reason, then they would buy a machine from the machinery store so the store will also earn money this is the fourth reason, they employee workers which help them too producing goods so our people also get job by them this is the fifth reason, so all these reasons are true and valid which I gave in above lines. So, in my opinion, F.D.I. (foreign direct investment) must be done in India. So thank you for reading my points.