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

Hello Everyone,

FDI to some extent is important for our development of our economy, some people argued that if Giant like Walmart comes to India it will remove the middle man system and provide good income to our farmers but in reality these giant are themselves big fish act as mediator, they will buy things from farmer in cheap rate and will sell it in market with much-increased price, eventually making poor more poor. Government of many developed countries where Walmart is operating used to give upto 200% subsidies to farmers but for the developing countries like India it will be very difficult to provide such big amount as subsidies, so we need to have limits defined for FDI in retail.

In Favour :-

Employment increases in the host country.

Origin country (the country which makes the investment) also develops economically.

Competition increases. So that, with the competitive spirit, every company improves to its best.

Through FDI in production companies, the price reduction is possible.

FDI is a boon for the small companies to become more actively involved in international business activities.

Agriculture related people get a good price for their goods as middlemen will be eliminated.

In Against :-.

With the FDI in the retail sector, small companies and merchants will suffer a lot.

Inflation (the rise in prices over a period of time) may be increased.

Technological dependence on foreign technology sources.

In my view, where FDI help to grow the economy of country where it keeps also few bad effect on it because when all the production and supply will be done by multi brand unit and that will demolish local shopkeeper and small businessman and we rest only consumer and servant nobody would be able to install any small biz. Small biz can not stand before multi brand market.

Partially good or bad!

The Reason behind that is, now recent times India is world third last country to received FDI in the year 2016-17, but people generally think if FDI inflow increase than employment as well as technology will boost up. But we know that our prediction is going wrong cause FDI has generally come in existing country, now foreign country's are investing their money in it as well e-commerce sector due to this reason India is growing jobless.

2nd reason is that India's tax policy is not constant its changing time to time and our intellectual property rights is not enough strong as required so many companies are scared to in retail sector.

Hi guys, first we need to know about FDI. FDI termed as foreign direct investment which means foreign investor invests for other country. Example Investor invests money for Indian companies because they seeing an opportunity for growth due to the rising market and purchasing power of the citizens in lower cost. Yes, we can say that FDI is good for India. If there is FDI, Companies will get profits and more revenues. Employment increases, jobless people will get a job in companies. Technology will also be developed, we also that our country is still developing country, the companies bring with them research opportunities and new technologies from their land which helps India to develop.

In my opinion, FDI is good for long term business but its impact on Indian retail market is very worse as it may lead to ruin Indian retailers and may ruin India market for short span but for long term goals it increases our GDP, foreign trade, employment, improved quality and services and economic growth.

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.

With FDI, the retail sector, small companies and merchants will suffer a lot. Inflation (the rise in prices over a period of time) may be increased. Technological dependence on foreign technology sources.

Yes, I think FDI in retail sector is good for our country because it has many benefits it increases the GDP It makes the items of same quality and same brand to be available at low prices and it helps to grow India with greater pace but the most important thing is that it generates huge employment and we know that our population is increasing very rapidly so we have to create employment at much faster rate to decrease the unemployment from our country and FDI will help us in that.

Yes, according to my opinion, FDI in retail sector will be beneficial for our Indian economy. Foreigner investors will invest money and bring new technology in India and this will help to improve employment rate and standard of life as well as a healthy competition will be developed between indigenous person and foreigner to sales their products and for this, they will work on new technology to improve the product quality in cheaper amount. But with this FDI will put adverse effects on small business. So, FDI should be implemented with strict rules.