FDI in Retail in India is a Boon or Bane?
Last Updated: Sep 21, 2013
FDI in retail industry means that foreign companies in certain categories can sell products through their own retail shop in the country. At present, foreign direct investment (FDI) in pure retailing is not permitted under Indian law. Government of India has allowed FDI in retail of specific brand of products. As India is one of the developing countries, so FDI must be promoted but must be kept under control as it can affect the economy of the country.
FDI in INDIA
FDI in my opinion is bad for the country’s economy. As we are in the category of developing country and to develop properly we need to control the country’s economy very carefully. If the % in FDI in retail sector (multi-brand) is increased then the investment in India’s retail market will be from foreign investors and the profits are also drained to the investors. And moreover in INDIA, the retail sector mainly depends upon the agricultural sectors and the producer and if FDI is increased then it is going to affect the agricultural sector of the Country very badly and which will affect the country’s economy. And if the % of FDI is increased to 100% in retail (both single and multi-brand) sector then government will lose the control over this sector completely and then it cannot help in controlling this sector with its rule and regulations as the whole retail sector would be privatized. And this privatization can make a very serious effect on the country’s economy.
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And one of the most disadvantage of FDI in retail sector is that as we know that the retail sector is one of the major employment provider and permitting FDI in this sector can displace the unorganized sector and leading to loss of livelihood the most favoring example is if wall mart entry in retail sector is allowed then it will kill the millions of local shops and jobs. The global retailers would exercise monopolistic power to raise prices and monopolistic power to reduce the prices received by the supplier. Hence both the consumer and supplier would lose while the profit margin in such retail change would go up. So from the above points i can say that FDI in retail sector is not good for India.
Advantages of FDI in Retail in India
- Growth in Economy
- Job Opportunities
- Benefits to Farmers
- Benefits to consumers
- Lack of Infrastructure
- Cheaper Production facilities
- Availability of new technology
- Long term cash liquidity
- Conducive for the country’s economic growth
- FDI opens up a new avenue for Franchising
Disadvantages of FDI in Retail in India
- Impact on Local Markets ( Kirana Shops)
- Limited Employment Generation
- Fear of Lowering Prices
- Negative Impact on Indian Economy
- Negative Impact on Indian Domestic Market
Please give your views in the comment section below. Any type of suggestion will be appreciated.
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142 Responses to FDI in Retail in India is a Boon or Bane?
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it should be banned as this would cut wholesellers and retailers completely who are the single earning member for a whole family. is just like making profit by loosing odds.who are they to decide whom to sacrifice?
fdi retail is good for our country. by fdi benifts for indian agriculture field and farmers get more profit then it is benefit for india. fdi connect small and medium business to the large business and chances given to the new company for our products launch in the market.
bur sometimes fdi is nor benefit for our country because it just down economy rate and rupees value.
fdi support for development business and agriculture field.
i am in favour of fdi in retail. because
1) it will obviously generate employment. as for the establishment of infrastructure workers will be required.
2) customer will get product at cheaper prices. due to breaking of middle chain only real prices will be
the cost of product.
3) as market will expand competition will increase. due to more and batter companies market will
good.
4) due to competition quality of the products will increase.
5) companies will directly take products from farmers. so farmers will also get real prices of products.
6) due to foreign investment foreign currency will flow in india.
7) due to more investment GDP will get improve.
In my view FDI is good in long term process and less effective for small term in the development of Indian economy. But one question arises “If it would have been so beneficial then why didn’t government try to impose it earlier?” or they want to fill their pockets through this as scams are over.
Government say “Due to conflicts, it wasn’t imposed earlier. ” But conflicts are still there and this time they have taken strong steps which is truly appreciating but it could have been taken earlier .
fdi is gaining more popularity in many nations..it is good in retail sector also because it is developing their economic growth and citizens are gaining chances in employement,bt it has a bad impact also on home services of manufacturing for a nation..attractions towards products of outside country decreases manufacturing of products, so as country’s economy in which fdi is started ..so totally it is good for job seekers and farmers who freuently commit suicide due to unemployement.but it should be kept in control in a specified limit so that it may not be harmful for others..
FDI…a bane..for sure.
All the popularising new terms of Wallmart,carrefour and what not in the list,is introduced by FDI system in India.
A respectable percentage of localites are into this sector..and with the arrival of FDI..the r going to lost on the part of their employement.The economy might get affected very badly.Probbaly it may sound,with full of lucrative offesr for customers but genuinly speaking,it wont be worth it.
Its involvement to Indian economy as a whole,wont provide affective results..the customers might find it easy and convinient but they might end up poor decision making abilities..since after a point of time..this so called revolution is going to influence all of us,lets say pretty adversly….along with that ,Indain branding will be going dwon..and so will our business ,affectng all the sectors adversly.
It has a number of negetive impacts,to counterpart the positive ones. Do hav a thought.
FDI retail in India is soo good,as it will create more job oppurtunities. As we are developing country,, and many of people are jobless. So they are unable to survive,poority also is there. It will create or will be a medium to earn. Many are arising point that foregin companies will take all profit. But why we are forgetting that we are living in that country where many people can’t take one time meal a day,,then why hell to talk about profit. Firstly look towards those who are surviving in a very critical condition. Many people are dying due to hunger in India, so FDI will create or will be a medium to those jobless people and its soo good in India.
According to me it is a Bane!
Because in our country the condition of our farmers and domestic sellers are not good, already they are surviving, If the FDI in retail comes then there will be more difficult to them. It will afect the growth.
And the no. of jobs which the FDI retailer gonna give will not as sufficient as the no. of domestic jobs will gonna increase in our country.
it should be banned in india coz it make us dependent on other copuntry.we should use our telent for making our product not for other like as FDI.
According to me it is a Bane.
Because in our country the condition of our farmers and domestic sellers are not good, already they are surviving, If the FDI in retail comes then there will be more difficult to them. It will afect the growth.
And the no. of jobs which the FDI retailer gonna give will not as sufficient as the no. of domestic jobs will gonna increase in our country.
FDI is a bane for Indian Economy. I dont know why we are still dependent on others? India is not that poor in economy! At one hand we say let the FArmers flourish and supported “swdeshi” on other hand we are debating on FDI whether its a Boon or Bane. Again we are doin the same mistake that our ancestors have done by Welcoming East India Company. If still we dont learn from our mistakes than “god Please Help”.
FDI IS BANE..
small retails shops will be closed…farmer have to grow crop acording to the demand of wallmart,this will surely have negative impact on them..
small farmers will be affected as wallmart focuses on large farmers..
CHINA being the most emerging economic power is against fdi then indian whose economy is in depreciated condition due to recent scams should not take this risk..
according to my thinking FDI is bane for india, because india is v developing country n the retail market of india is fully depended on the local retailers , a huge part of indian population depends on retailers not on super markets, if FDI comes in india then it will surely effects the local retail market and the unemployment rate will increase, because The FDI ‘s strategy is to give a hard competition to local shops n retailers.
in my point of view fdi in retail is a bane,fdi companies are redusing the profit of indian companies and the indian farmer are in loss and they will not capbale to gain products and agreeculture and there are not prudused the product in our nations and retails are in profid and farmer of india will in loss,fdi is very bad effect on the economy of india…..,
FDI is foreign deposit investment. it is ultimate or first option for indians.so i think it is boon for us. but it is also depends on the case we work that is in investment or deposit….
If we see the today,s inflation rate of India, it is too much high and a common man of India can’t afford it. And Broker’s commission is play a important role for high inflation rate. Thus, if we allow FDI then foreign companies invest more and sell directly our products to our customer. So the there is no dominant role of broker’s and products available at low cost and finally inflation rate will be reduce. The competition among companies will be more and customer get quality product at cheap rate, due to competition Indian companies will also improve our standard at global level.
(FDI) in pure retailing is not permitted under Indian law….. Government of India has allowed FDI in retail of specific brand of products. As India is one of the developing countries, so FDI must be promoted but must be kept under control as it can affect the economy of the country……!!!!
In my side, FDI is good for our country , beacause prices are lesser compare to present time, FDI is multi brand so present time many products prices very high so FDI is good …!! and but one disadvantage in my point of view economic rate of india is decreases..!!
fdi is need some field but fdi is benifit for agriculture system and devoleping country and fdi the ecomic system major benifit of this is helpful for our farmer and they get actual price of their crop
FDI is both good and bad for our country. It is bad for farmers and poor people because all prices of retail shop control in fdi agents so they can increase prices .
And good for our economy because our country is developing and want to maximum investment .
So it will be bane.
through my opinion FDI in retail industry might be a boon or bane. I can surely say it in two words: “ . Speaking about Wal-Mart, the company is in loss from last 8 years. I don’t feel that entry of Wal-Mart will kill all the market present today because of various reasons such as:
customer is man part and is aware of what is right and what is wrong for them. However, consumer behaviour can vary from region to region. Theories of perception can influence the decision-making capabilities of any customer. In short, country’s economy is definitely going to affect by introducing FDI in retail sector. Any change can create chaos for sometime in an existing system. However, I completely agree with the author’s point that global retailers will use monopolistic power and will play with the pricing of different products they offer.
it is bane because it destroy the indian market & create a market which provide most expensive things
FDI is effecting our indian economy…as if the pecentage of fdi increases then it will effect our agricultural sector and indian market very badly… fdi is both good and bad fdi should be implemented in india but only those products sholud be implemented which could not be produced by indian market…as per my point fdi are produced in huge sector then its profit will also be given to foriegn investors and india will suffer from this activity a lot..so to avoid this rpoblen fdi should be implemented in limitation so that it does not effect the indian market….on the other hand fdi can also provide job oppurtunities in indian market so we can say that fdi is both good or curse…the only solution for fdi is that only those product should be implemented in indian market which are worthwhile in indian merket..and should not effect the economy of indian market.
FDI in retail is a boon. Bcz, it will put a good effect on Indian economy. Many unemployed persons get recruitment inthese sectors. The Foreign Developement Investment in retail sector will bring forth benefits in terms of advanced employment, organized retail stores, availability of quality products at a better and cheaper price
FDI retaol is good for our country . FDI mean foregin direct investment . india is a devlopment country so fdi promote but in under control . fdi gave mass opportunity of jobs . because of fdi in retail develope oue growth rate . fdi is good for country but its also feed effcts to the the economy.
fdi provide more products for people . fdi is not good 100% ther is demerits also .
thank you
Fdi is good for country. india is a development coutry so fdi helps to promoted but in under control. fdi gave mass opportunity of job. reason of fdi indian market get growth and growth rate of indian market incresed. fdi provide more product for people and fdi gave indian market a new height of work…