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

As far as, India is concerned. The direct investment of foreign is quite good because it increases competition in the retail market and indirectly it improves the quality of product. Monopoly in market can be removed.

FDI helps in the economic development of the host country (where the investment is being made).

For origin and host countries, FDI provides access to new technologies, products, skills and organizational and management strategies.

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.

Yes, it's important because it will increase the money worth of the Indian rupee.

FDI is the mixture of beauty. This opportunity is big bang for India, FDI benefits for all types of people and products, FDI always follow the instructions process so perfect place for business and accurate database, because of this nobody can escape from income tax, tell me which one we have to support is it manufacturing in India or just only assembled and really we appreciate some desi products although we really addicted maximum foreign goods because advanced quality, my dear friends we have choice for everything, because of in India out of hundred more than sixty percentage only youth, frankly entire world worried about this. That's why everybody interested in India if increase FDI our income also raises think about.

Fxvinu.

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.

FDI invests in India is good. It has some disadvantages also but it has more advantages in compare to disadvantages.

1) It increases the employment by establishing plants in India.

2) it also helps to improve technology.

3) It also causes competition among industries/ companies, due to which customers get better quality of things at a reasonable price.

4) It will increase the value of Indian currency.

1. Integration into global economy: Developing countries, which invite FDI, can gain access to a wider global and better platform in the world economy.

2. Economic Growth: This is one of the major sectors, which is enormously benefited from foreign direct investment. A remarkable inflow of FDI in various industrial units in India has boosted the economic life of country.

3. Trade - Foreign Direct Investments have opened a wide spectrum of opportunities in the trading of goods and services in India both in terms of import and export production. Products of superior quality are manufactured by various industries in India due to greater amount of FDI inflows in the country.

4. Technology diffusion and knowledge transfer " FDI apparently helps in the outsourcing of knowledge from India, especially in the Information Technology sector. Developing countries by inviting FDI can introduce world-class technology and technical expertise and processes to their existing working process. Foreign expertise can be an important factor in upgrading the existing technical processes.

5. Increased competition - FDI increases the level of competition in the host country. Other companies will also have to improve their processes and services in order to stay in the market. FDI enhanced the quality of products, services and regulates a particular sector. Linkages and spillover to domestic firms- Various foreign firms are now occupying a position in the Indian market through Joint Ventures and collaboration concerns. The maximum amount of the profits gained by the foreign firms through these joint ventures is spent on the Indian market.

6. Employment - FDI has also ensured a number of employment opportunities by aiding the setting up of industrial units in various corners of India. So according to my knowledge FDI is good for India. Because it helps to utilize the resources of our country, provides job opportunities and helps to build our country strong in economically.

It's good for India because it creates a value for an product which already exists. And then it makes an employment opportunity which was struggled by the Indian government. Then it improves an updated technology to survive the new market trends.

A coin have two sides likewise, it has demerits also which cause our domestic products.

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.