Wednesday 6 March 2013

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





Answer First


As far as I am concerned I definitely support FDI.

Government has made the clause that the raw materials which foreign investors will buy, they have to buy it from the Indian markets. Thus it will:

1) Increase our domestic productivity.

2) Quality of the goods available in the market will improve, as these days quality and cost are becoming inversely proportional to each other.

3) Definitely condition of farmers will raise economically because they will get a good market to sell their products.

4) Introduction of new technologies in various fields as FDI investors have to teach domestic traders new technologies as according to the government policy.

And the thing that our local retailers will come into loss, I totally disagree with that because no one is stopping us to become an entrepreneur, start our own business and all. The only thing will be required is the quality and dedication in our service that we will provide to compete with the foreign investors.


Answer Second


Hello guys I want to be apart of this discussion.

Friends have you think why India has been hit by recession partially. Only those sectors in which we depend upon foreign countries for our needs are completely gone down. Sectors in which we are self dependent has not been hit by recession.

In my opinion FDI should not be allowed in Indian markets it is because of following reasons.

1. It will vanishes the small scale industries of India and families depend on these small industries will be ruined and thus create huge uneducation and crime.

2. After a period of time they will be market regulators and will destruct our economy.

3. Some of my friend discuss that farmers will get huge benefit from this because there will be no middle man. Do you think our farmers have capability to earn large amount of profit they are not able to deal with our government it is because 70% of them are uneducated.

4. I think we should read our history books how one British company make Indians from a golden bird to poor and hungry Indians.



Answer Third


Yeah I agree that FDI is good for India if it is implemented properly.

As it will reduce unemployment rate in India by creating a large amount of job vacancies.

It will provide goods at their best cheap prices because of neck cutting competition so to be in the market.

N It will provide benefit to farmers by removing the inter mediators used to bring there stuff to market.

As FDI will be allowed so there will be huge foreign investment so it will develop Indian infrastructure.

Improve n bring new technologies to India.

As well as make rupee strong since there will be more demand of rupee in market. !

So I think that FDI is good but need to be implemented properly n government need to learn how to manage it to keep our economy growing.

As the fate of this policy That it is GOOD OR BAD is in hands of Indian Government And Time.


Answer Fourth


I Strongly opposed FDI in retail sector.

As many of them discussing that FDI is good as it is giving employment opportunities, new technologies, getting good quality at lower prices and many more. Then they must go through the detail experience of the other countries like china, Indonesia and many other where they welcome such opportunities of FDI and had faced many related problems.

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.

One of above candidate was talking that FDI will improve the strength of rupee and will bring Cold storage technology. But I don't think so.

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.

Some of them are just attracting with the attractive features -.

1. Getting good quality with cheaper price.

2. Getting employment opportunity.

3. Improving rural infrastructure.

But my dear friends just think before saying.

1. Do you want our India to become sales country which will work for others ?

2. Do you want we depend on others for each and every single thing ?

3. Do you want others to play with INDIA on the name of new new policies like FDI?

4. Do you want no Indians to become entrepreneur ?

So my dear friends please I beg you to go through the experience of other countries where these FDI entered and choke the domestic players and discouraged all their technologies. I really appreciate the china government who had faced these problems and handled it very carefully and Mindy way from this FDI by making their own policy so that FDI can't harm their country in any economic or any other mean.

Answer Fifth


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.

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