Is Foreign Direct Investment FDI in retail in India sector good?
Last Updated: Mar 13, 2013
Is FDI in Retail in India good for country
FDI in retail in Inida
I strongly oppose FDI retail in India, because we already lost our country by leaving other countries to enter into our India, again we should not leave our mother country. Indians are having good skill. Indians are worth to set up Indian companies similar to Walmart. Even new technologies can be brought by us people also
FDI is just the mirror of falling Indian trading and administrative system. It is good in present scenario, but could proved ill in long term for the nation.
FDI in retail in Inida
For instance govt has invested 1000 crore of public fund inviting Walmart, what when Walmart fail all the govt investment goes to ashes, instead of govt I will suggest private branded firms would invest money if they are really looking it as a business, and I believe private firms could handle situations in better way as govt always fails.
I support FDI in infrastructure, services and less in retail.
India a huge consumer and thus very attractive place for trading of its loose foreign trading policy. Use nations for bringing technology and stable system with culture in India, but control should be in our hand.
For inviting the retail company like Walmart in India, Indian govt need to invest thousand of crores to let them in India, the govt will only use the public money for such investment. We hardly bother about our takes that we are paying to govt and how govt is misusing this,
For instance govt has invested 1000 crore of public fund inviting Walmart, what when Walmart fail all the govt investment goes to ashes, instead of govt I will suggest private branded firms would invest money if they are really looking it as a business, and I believe private firms could handle situations in better way as govt always fails.
Secondly FDI in retail in India is always preferred by the developed countries to increase their productivity not by developing countries, our politicians political bill is limited to get money only and nothing else, so FDI is not good for the time being, India again retain its credibility and stood on his foot, then FDI is good else its just solace to support.
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145 Responses to Is Foreign Direct Investment FDI in retail in India sector good?
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According to me FDI in retail sector is bad for India. Because companies enter in to the India they only take our profits. I think FTI (foreign trade investment) is good instead of FDI which is did by hero company in 1884 with honda company. FDI is good for other sector but this is harmful if allows in retail sector. FDI will give only sales jobs to Indian youth and made Indians their slave again like in British times. I can’t understand why Indians don’t think that they even have capability of having such technologies by their mind. FDI coming to India doesn’t mean that foreign currency is entering in India. Again their investment will flow from India to their country in terms of Rupee only. That concludes our rupee is becoming more and more weak. At last i would like to said that FDI is bad in india for retail sector.
YA IT IS GOOD FOR INDIA AS CABINET MINISTER KAPIL SIBAL SAID FDI GIVES US MORE OPPORTUNITY.IN JOBS AND IN MANY THINGS…AS WE ALL KNOW THE S AND P RATING OF INDIA THIS YEAR GOES NEGATIVE… SO THE CENTRAL GOVT. MUST HAVE TAKE THE NECESSARY ACTION .TO GROWN UP THE COUNTRY..
its not bad becuase indians have greate opportunities for jobs. the following resons for this investment……..!
Favor
This will bring modern technology to the country.
Improve rural infrastructure.It would help build infrastructure and create a competitive market.
Reduce wastage of agricultural produce.
Enable our farmers to get better prices for their crops.
consumers will get commodities of daily use at reduced prices.
Biggest beneficiary of this would be small farmers, who would be able to improve productivity and realize higher remuneration by selling directly to large organized players and shorten the chain from farm to consumers.
Government too stands to gain by this move through more transparent and accountable monitoring of goods and supply chain management systems. It can expect to receive an additional US$ 25-30 billion by way of taxes
Opening of retail can be seen as a solution for food inflation, which has been confounding policy-makers. FDI in retail would help in building much needed back end infrastructure. Additionally, he said, investments in cold storage chain infrastructure would reduce loss of agricultural produce and provide more options to farmers.
FDI in retail is surely a boom for the sector and following points clearly explain them :
1. Huge investements in retail sector will see gainfull employement oppurtunities .
At least 10 million jobs will be created in the next 3 years .
2. It will help farmer’s secure remunerative prices by eliminating middlemen who exploit the farmers.
3. More efficiency in supply chains .
4. help in contrlling food inflation .
5. a minimum 30% sourcing have to be from indian small scale industries.
Yes I agree with the topic, FDI will be good for India, but when govt. Used it properly.
FDI bring the new technology in India, which will be very beneficial in country growth, it will lessen the supply chain of product from farmer to consumer.
In my point of view, it will not affect the small retailer, because they maintain the relations with their costumers which will be not done by the Walmart, small retailers also give the whole month ration to their consumers on the credit.
51% FDI in multibrand retail will improve the infrastructure of the country. But govt should ensure that the foreign companies take all the raw material from India and not from outside.
Im not fully in the favour of FDI because it wil lead to loss to local vendors of INDIA,which will increase the rate of unemployment also.there must be some limits and laws applied on it by our goverment so that it wil b fruitfull for us.
Since FDI as first allowed for 49% in 1997, by the then Congress government; it has helped Indian economy flourish a lot. India remained a closed economy for many years after the independence, which kept foreign investors contributing to the country’s economy & this proved very harmful for it.
However, later hen it gradually started to turn into an open economy , Companies like Suzuki with Maruti , Honda with Hero & many other foreign companies like this flourished into our country & gave it a technology boom. Quality factor got introduced & customer satisfaction became the most important thing.
Still, telecommunication sector sees not many domestic competitors to the foreign brands & they don’t even match them up.so, in this context FDI is good.
The biggest factor which hampers Indian market is the existence of middlemen & unprofessional corruption, that would also be perished with the FDI execution.
But still, we cannot overlook the amount of freedom which FDI allows to the foreign investors, which gives a setback to domestic market & also foreigners would have an easy approach to our country’s natural resources which might prove very harmful to it.
So, overall FDI is good, but under a limit & closely monitored.
yes we have to generate a walmart like system in our country too, but still then we cannot leave our profit unseen which can be completed through entry of FDI in India,FDI is revenue generating ,agro- waste reducing and provide high employee rate and providing good rate to farmers than shopkeepers and introducing global competition in INDIA.
yes i think foreign direct investment (FDI) is good for india because i think it is good for all of citizens whether it was a buyer or it was seller because by this there is lesser mediator between the buyer and the seller so that the cost will be decreased. because the mediator increases the cost of the product to give it to the retailer on which it buy from the farmer. farmers get the proper cost for their work which they had done to grow up or making the product. And also by FDI inflation is decreases at some level. also farmer get a good platform to get the proper cost of their product.
Foreign Direct Investment in retail should be allowed in India so as to benefit the Indian farmer and to increase the employment opportunities for the people of India. Also, FDI will provide international products in the Indian market at a common platform to all people. Only drawback of FDI in retail is that the small retail businessmen will lose their identity.
Foreign Direct Investment in retail is a boon or a curse? it is still a question because although the FDI in retail is passed but not yet established. but in my opinion I purely support FDI in retail sector. As it is going to provide large employment opportunities. the farmers will be benefitted directly with no intervention of mediators. As mediators take food from farmers at low cost and in market they sell it at higher prices. The farmers have been the victim of this from a long time. FDI will help farmer to get the correct price of their vegetables. this in turn will improve the life of common people by providing good quality of food, better life of farmers and growth of the nation economically.
fdi retail has both the point positive as well as negative in india..
positive point is that if the foreign companies are allow to sell their products in india then their will be competition between the indian companies and foreign companies in terms of cost and quality..and the thus indian consumer will get the good quality products in sufficiently low cost..secondly many products will be available to the consumer under one roof..so he can also compare the product and choose accordingly to this need.
negative point is that if the foreign companies are allow to establish there market in india it will affect the indian economy..!!because if this happends then the profit will be take by the foreign companies and our farmers will not get the profit..!!and this our ecnomy will decline..!!
according to me the fdi is not allow s India is a developing country, for some time foreign investment robustly increases local productivity growth at a time and at a same time demoralize the local companies where government can invest to increase the local productivity and create more employment by itself. For instance govt has invested 1000 crore of public fund inviting Walmart, what when Walmart fail all the govt investment goes to ashes, instead of govt I will suggest private branded firms would invest money if they are really looking it as a business, and I believe private firms could handle situations in better way as govt always fails.
Every company will invest only if it get 3 times more profit from its investment. Opening Indian market for foreign compaines is one of the good decision in many aspects like
– More employment opertunities for youth.
– FDI will bring some new technology to the country that leads to growth of our country.
– Tax evasion will be reduce as company will pay tax to indian government on every purchase of items and many more benifits we have.
But One question always arise in my mind, Is indian market and indian people is ready for all this?
– Indian domestic retail firms are not so powerful to compete with the FDI and this FDI will directly affect these firms.
– Will it be successful in cities where people bargain and argue for every kind of product.
People talk about quality of product that we get because of FDI but If government invest this 1000 crore in indian market then we can easily overcome from all the demerits and problem we face in indian market.
And yes if FDI will succeed in getting 3 times more profit then that mean we are letting our money go outside the country which will definalty effect us more on indian Economy then what we will getting from it
FDl is a risk taking part for the Indian economy . FDI is just the mirror of falling Indian trading and administrative system. It is good in present scenario, but could proved ill in long term for the nation.Our interest rates today are as high as 14 per cent to 16 per cent how do we compete with the economies which have a 4 per cent interest rate. FDI allows more and more opportunities in India and it gives more better product .Even if big retail companies help the farmers in resurrecting their economy, what plan does the government has for millions of middlemen who are part of the business process chain that ensures manufactured products reach end users.
i think FDI is is not quite well but it is good in some cases because in the present time our country is suffer from inflation rise if we apply this in our country .we are grow financially in another manner.or if we implement it for long time.it may possible foreign compney might grow the prise of materials.so it have another worng part .so i think it is not requied in our country.if our govt. think about it so that it definately rise the money problem in india…
if we are not implement in our country it can not deteriorate inflation rise in any way our indian govt. should take right decision .i think is not necessary but should apply.
in my view, FDI in retail sector in INDIA is good , and beneficial for our country. We are opposing it without any valid reason, as most of us gives the reason for unemployment of the farmers and grocery vendors. But we forgot to realize that we are already having FDI in the form of many Indian companies such as Big Bazzer and Reliance fresh etc. these are the companies which also provide the FDI but we do not oppose them , as they are Indian companies. One more Fear of FDI is that local vendors will loose their business, but at the same time we forgot to know that still we like to buy household items from the nearest shop. One more profit of FDI is it increases the competition which improves the quality.
Thus FDI retail is good.
In my view , FDI in retail sector in India is good , and benefitial for our country. We are opposing it without any valid reason ,as most of us gives the reason for unemployment of the farmers and grocery vendors. But we forgot to realize that we are already having FDI in the form of many Indian companies such as Big Bazzar and Reliance fresh etc. these are the companies which also provide the FDI but we do not oppose them, as they are Indian companies.One more Fear of FDI is that local vendors will loose their business, but at the same time we forgot to know that still we like to buy household items from the nearest shop. One more profit of FDI is it increases the comptetion, which improves the quality.
Thus FDI in retail is good.
As per the current regulatory regime, retail trading (except under single-brand product retailing — FDI up to 51 per cent, under the Government route) is prohibited in India. Simply put, for a company to be able to get foreign funding, products sold by it to the general public should only be of a ‘single-brand’; this condition being in addition to a few other conditions to be adhered to. That explains why we do not have a Harrods in Delhi.
The retail industry is mainly divided into:- 1) Organised and 2) Unorganised Retailing
FDI as defined in Dictionary of Economics (Graham Bannock et.al) is investment in a foreign country through the acquisition of a local company or the establishment there of an operation on a new (Greenfield) site. To put in simple words, FDI refers to capital inflows from abroad that is invested in or to enhance the production capacity of the economy.
as what i personally no body exactly knew about fdi it simply stated the foreign retailers they come to your country buys something and pay to you and gave your product to global market in general if we go to the basic benefits you find that it helps in the economic development of the particular country where the investment is being made. so as our country is developing day by day we need strong economy policy which allow fdi for some extent to make profit from it without neglecting our policy of liberalization and globalization. so in short it is beneficial to some extent we have to adopt it for better growth.
Hi friends, I think there are some hearts to listen me.
I strongly oppose to FDI, because we already lost our country by leaving other countries to enter into our India, again we should not leave our mother country. Indians are having good skill. Indians are worth to set up Indian companies similar to Walmart. Even new technologies can be brought by us people also.
I too agree that it creates huge employment opportunities, but we will be depending upon those MNC. FDI will ruin the small scale industries. If they started growing, they may fix their own price thinking they are monopoly in market. We already have some companies in India similar to them. Like TATA, RELIANCE then why can’t we expect such like companies in our future.
Many are saying through FDI, we are able to purchase the good in cheaper price, with good quality. Why our Indians can’t built a company which sells them in cheaper price with good quality. Don’t we have any care our mother land and our people, now through FDI people may see some benefits and but will not good for us and for our country in our future. So I request all youths not to support FDI.
Hello friends:
I would like to contribute my views regarding FDI in front of you all.
Brings of FDI in India having positive as well as negative aspects as well.
First of all i would like to show some positive aspects:
1. FDI will bring some new technology in our country that leads to growth of our country.
2. We will get bill on each purchase of product which reduces tax evasion.
3. Middlemen will get eliminate from the market.
4. Farmers are able to sell directly to these retailers and hence get good rates.
Negative aspects:
1. Later on, due to their huge investment in retail they are able to make their rivals eliminate from the market and they are able to establish their monopoly. Sometimes they became so powerful that they can threat the sovereignty of a country.
2. There will be no bargaining on the products customers will get product on the same rate.
So, if our country allows the FDI so government has to make such policies to protect the domestic retailers like:
1. Government can set the limit of the price that they cannot sell below this rate.
2. Government should provide tax benefits to the domestic retailer so that they will get encouraged to sell and able to survive in the longrun.
3. It should impose more taxes on the earning of Wallmart.
There is one major point which government should focus is that think about those middlemen who get eliminated from the coming of FDI and provide them new work so that they are able to earn their living and country will able to protect them from unemployment.
If the government use proper strategy so they will able to get benefit from the FDI and it will enhance the development of our country.
Yes, FDI is good for indian economy. Foreign Direct Investment (FDI) is used for good marketing in many country. FDI is most economically power in market, If FDI come in India then easy provided the goods for our purpuse and chepest as compare to retail market. FDI recruit the many jobs, then the unemployed people to employed person.
i think fdi is not so good for india because as we know that in fdi there is offer for foreign companies to direct investement in india.Due to this the rises price must be go something low and so infletion is low.But fdi totally spoil the small companies of india and there is danger of unemployement in india.Also there is another problem that if foreign companies raise there product price then people faces problem.so fdi is not good .
The main thing is that we have to raise the oppourtunity for small companies.
yes I think that FDI .father to help for companies of this fdi . all people of are not with agree in fdi . it is fdi of poor family .this fdi of benifit of business this of fdi consitutes of lower family.