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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advantages and disadvantages of retail markets(in points)……
yeah i totally agree with you that fdi in retail will harm kirana shops and hence indian economy. for a while cheaper products may be available but in a long run stores like walmart will destroy the market and will be monopolistic and then every price for the product has to be paid. this is quite similar to that of done by Britishers in India.
FDI is a boon or a bane is right now a matter of concern and it purely depends on the manner it is implemented
FDI is good bt it should be in Limited Sector not to in Agriculture Sector..and also require implementation of some check point in the path of FDI..
FDI IN RETAIL IN NOT ONLY EFFECT BUT ALSO AFFECT OUR INDIAN ECONOMY. AFTER THE ARRIVAL OF MULTI NATIONAL COMPANIES IN INDIA, IT HAS EMPLOYEED MANY UNEMPLOYEED PEOPLE, & HELPED THEM FOR THEIR LIVELYWOOD. BUT IN REVERSE, IT IS THE CAUSE OF THE UNEMPLOYEMENT OF MANY DOMESTIC RETAILERS….. MANY DOMESTIC RETAILERS ARE VERY MUCH AFFECTED BY ARRIVAL OF MULTI-NATIONAL COMPANIES IN THE INDIAN MARKET.
FDI IN RETAIL IS JUST LIKE SCIENCE WHICH GOOD AND BAD BOTH, BECAUSE WHEN FDI COMES IN INDIA THEN IT BROUGHT DIRECTLY FROM THE FARMER AND SELL IN MARKET. SO THIS THING IS GOOD, BUT PROBLEM IS THAT WHEN THE QUALITY OF FARMER COMPONENT IS SO GOOD THEN THE PRICE OF THE VEGETABLE, RICE , WHEAT Etc. IS DECREASE. QUALITY MEANS SHAPE AND SIZE OF VEGETABLE SUCH LIKE TOMATO, POTATO, NOT IN EQUAL SHAPE AND GOOD/PROPER SIZE WHICH IS DANGEROUS FOR FARMER. SO FDI IS NOT GOOD 100% THERE IS DEMERITS ALSO.
in my opinion FDI is bad for our developing country economy 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 privatised. And this privatisation can make a very serious effect on the country’s economy. 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 unorganised sector and leading to loss of livelihood the most favouring 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
FDI is a boon as quality of product will increase…many of the people will get job…product will be cost effective..as seen ninety five countries are under fdi and those countries are progressing continously so according to my point of view fdi is a boon and it should be applicable to india for better progress.
YES, IT IS BOON FOR OUR COUNTRY THERE IS MANY SCOPES BECAUSE OF THIS,N YOU ALL KNOW BJP ALSO FAVOUR THIS ..WHEN THEY ARE IN GOVT…AND A GREAT THING OF THIS IT IS NOT FORCEFULLY APPLIED ON STATE GOVT. …WHICH STATE GOVT. WANTS FDI IN THEIR STATE ONLY THEY ARE ACCEPTED FDI….
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 is certainly a boon in some and bane in major cases!
If we look back at the span of Indian market towards the commoners, i.e., the general mass, Indian citizens, then we come to know that a major section comprises of middle and lower classes of society which are involved in affecting the market prices.
If FDI is implemented more than the regular, i.e., 49% to current, then the issue would directly affect the pocket of the common man.
Precautions and unbiased implementation are the 2 requirements for FDI and the incoming of WALMART, as stated by the economists, would, to certain extent, not be fruitful as it’d then eat up the bread ‘n butter of many.
Despite it’ll give employment opportunities to many lacs but we can’t ignore the fact that snatching of the private entrepreneurship will also be threatened to a large extent.
FDI is may be good for other developed nation, but for a developing nation like India..it is not fruitful.
In my opinion FDI is good for our country as it has many advantages regarding the country’s development & growth.
IN my opinion FDI would be bane for India because indias economy is reliable more on agriculture and it will be a great loss to farmers though to Indian economy.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 privatised. And this privatisation can make a very serious effect on the country’s economy. 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 unorganised sector and leading to loss of livelihood the most favouring example is if wall mart entry in retail sector is allowed then it will kill the millions of local shops and jobs.
so in my opinion it should not be be brought to INDIA
if the FDI is used in india ,so the jobs opportunity for younger is increase but the other hand the indian is depend upon the agriculture so that is the increase too much problems for those person whose life is depend upon the agriculture . and government is also in loss because the whole work is done privately so there is no interference of government the prizes is increases and decrease by the private company the government is not do any favor in these prizes so the fdi is bane in india . if the fdi is worked with government so it is may be use full to us .
I think fdi in retail should be banned otherwise i will cause lots fo problem not only to shokeepers but aalso for the consumers .Consumer should always pay money the can t get borrow when they required .So it is very hard for consumer to make relation with the retailer .fdi in retail would cuse lots of insecurity in the local shopkeepers mind. So it should be banned soon .
FDI will be boon for the India in this foreign companies will directly invest in the Indian business which will help the country in many ways like :
1. India has a shortage of godown due which every year tone of crops is “WASTAGE” .
since fdi provide this facilities to store the crop in their godown that by it should be adopted.
2. broker b/w the consumer and farmer consume crop at low rate and sell it at high rate
this encourage ” BLACK MONEY”. FDI provide Farmer to sell their produce directly to the investors and they also get better prices for their produce.
3. It provides jobs not only for educated person but also for poors and farmers.
and it also reduce the cost of product..
4. Due to foreign investment foreign currency will flow in India due to this investment GDP will get improve..so it will help to grow the Indian economy
5. FDI provide the opportunities transfer of skills and technology from overseas and develops the infrastructure of the domestic country.it also allow the country farmer product or service to enter into the global market.
So in my opinion FDI should be brought, but the sector in which it is to be allowed should be thought well enough.
FDI in retail is a boon in Indian Economy..If the percentage in FDI in retail sector is increased then the investment in India’s retail market will be from foreign investors and the profits are also drained to the investors..FDI basically comes from there,where the money was invested and slowly get a hike.So FDI have both positive and nagetive sides.this will depend upon that how much liberty will give indian govr. to FDI.
FDI can prove to be a boon as well as bane. But as per me, FDI rather is a bane for the retails and consumers. This will affect the indian economy as majority of the economy depends on agriculture. FDI will impose a multi brand marketing environment. Though i am strictly against FDI, but it will have an advantage of higher employment options. Majority of the youth will be provided with jobs that will decrease the problem of unemployment.
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 our Govt. is allow to FDI . the FDI(Forigen direct investment) I personally like to say that FDI would be the bane for India because most of the Indian economy depends upon agriculture and if FDI camed than it will greatly hurt the retail sector.in my opinion FDI is not good for our developing country as control of our country economy is greatly based on agriculture and retail field. approximately 70% of our economy is dependent on agriculture. if the % increment in FDI in retail sector then the investment in india’s retail market will be from foreign investors and the profit are also drained to investors and lot of money is out from country which is not good for our country .
in india yes there are almost 2 crore people which are directly or indirectly joint with retail sector. in my opinion FDI create strictness on the retail sector by allowing much more quality and price effective products into market. yes it create Bane on some product but Boon on more products which is necessary for the effective quality of the products so by allowing FDI create more Boon which is beneficial for our economy.
USA is the first largest country in FDI which gets more profit in this field, & second largest one is CHINA & then our nation i.e INDIA. INDIA is known by golden sparrow & i think to invest in it is more
efficient.
Agriculture experts seem divided on the issue of benefits to farmers from government’s decision to allow foreign direct Investment (FDI) in multi brand retail in India.
Planning Commission Member Abhijit Sen said the benefits of FDI in multi brand retail to the farmers needs to be analysed in the long run
Consortium of Indian Farmers Associations (CIFA) welcomed the move saying that it would help in raising the income of the farmers.