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


@ : Home > Group Discussion > Economics - Discussion Room

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Ebin Thomas said: (Fri, Feb 21, 2014 02:49:02 PM)

Foreign direct investment incentives may take the following forms:

Foreign direct investment incentives may take the following forms: *. *. *. *. *. *. *. *. *. *. *. *. *. *. *. Low corporate tax and individual income tax rates. Tax holidays. Other types of tax concessions. Preferential tariffs. Special economic zones. EPZ - Export Processing Zones. Bonded warehouses. Maquiladoras. Investment financial subsidies. Soft loan or loan guarantees. Free land or land subsidies. Relocation & expatriation. Infrastructure subsidies. R&D support. Derogation from regulations (usually for very large projects).

Governmental Investment Promotion Agencies (IPAs) use various marketing strategies inspired by the private sector to try and attract inward FDI, including Diaspora marketing. By excluding the internal investment to get a profited downstream.
Rate this: +2 -1

Jibin said: (Fri, Feb 21, 2014 02:45:28 PM)

According to me FDI should be allowed as it will create win -win situation for both Consumers base (1.21Billion) and farmers (263million). FDI will benefit us through more efficient processes and price adjusted after eliminating middlemen share which will help cultivators to sell their crop at higher prices and consumers to buy product at low price.
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Utkarsh Dwivedi said: (Thu, Feb 13, 2014 11:46:15 PM)

Its a very important message to each and every citizen of India, so PLEASE DON'T NEGLECT IT. I want to convey my this message to all my dear friends, who took part in this long debate, especially the one who are in favour of FDI. Introducing FDI will be a great loss to our Indian Economy. As we all know that today our nation is counted in one of the developing nation in comparison to other countries of the world, so according to me first we shall try to develop our nation in spite of thinking anything else. We need money to develop our nation and if FDI will be introduced in our country it will take much part of our Indian Economy, by 85%, and for a developing nation really it will be a great loss. FDI is to increase our living standardization. All want himself to be standard, but before increasing our status, we have to be at that level. Unless our country is counted in developed nation, a FDI will just be a sucker of the Indian Economy, and instead of developing it will again be deepening in the terms of standardization as well as a good status in the world. Taking all aspects, government should be very clear to the topic because once introduced, it will not be easy to take it out from the country. Just imagine the situation after 20 years, when our country will be attaining a good position and at that time, any of the FDI company increases its rate very rapidly, where will the citizen, who are poor, go to purchase the things when our Indian market will all be closed. And also there is no doubt that the history may repeat itself and we, the people of India will once again the slaves.
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Aslam said: (Wed, Feb 12, 2014 11:29:28 PM)

Hello everyone !. According to me FDI Helps in transfer of new technologies, management skills, intellectual properties. FDI also can increases competition within the local market and this brings higher efficiencies. FDI helps in increasing exports and increase tax revenues. We can say it is the development of our country.
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Sonal Priya said: (Wed, Feb 12, 2014 11:57:37 AM)

Hello Everybody, In my opinion every thing have good and bad side so before forming any opinion about anything we should look at both its side. FDI has both benefits as well as loss.

The advantages of FDI are: 1). New jobs would be created. 2). India will get the facility of the latest technology in the world. 3). The economic condition of India will improve by the taxes paid by the companies that has received FDI or by the company set through FDI. 4). Competition among companies will generate better product. 5). Bribery, corruption, cronyism will decrease considerably. 6). The living standard of people will improve since goods will be available at lower prices. The disadvantages of FDI are: 1). Small retailer will suffer. 2). People living in small towns or village will not get its benefits. 3). The main aim of FDI is to make profit so it will not focus on environment of India or health of its workers which are Indians. So finally I conclude that FDI can be made a Boon to India if the government of India impose proper rules on them.
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Parag Tadhani said: (Tue, Feb 11, 2014 10:22:08 AM)

Hi friends, In my point of view FDI is helpful for our country but some kind of situations. Likes, - It takes 80% raw materials for our country. - It employ 90% Indian labours and 10% skill labours which it brings. - It take care of both farmers and customers means, in this condition farmers sell their Crops at higher prize but customer buy products at lower prize. - Means taxes are relieved. So, advantages of our country likes, - Our country GDP increase. - Employment is increase. - Technology and infrastructure are increase. - Our labours technical skill increase. - Quality of product increase. - Economy of our country increase. But, another thing is that above all thing already increase without help of FDI if our political department stop the corruption and also lokpal bill will pass. So in this thing I totally agree with kejrival. Thank you.
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Radhakrishnan V said: (Sat, Feb 8, 2014 10:50:46 AM)

Presently we are accepting investment from foreign countries in two ways. One in the form if FII - Foreign Institutional Investors and other in the form of FDI. Where we know that there is no physical investment in FII, FDI is different. FII can withdraw their investment at any time depending upon the market conditions. So here is the

is different. FII can withdraw their investment at any time depending upon the market conditions. So here is the story. Presently in many areas FDI is allowed like Education, Telecom, IT, Pharma etc. In some of the areas FDI is allowed upto 100%. Whenever FDI is promoted our country, Indian laws are not humanitarian to the foreign investor. The company cannot take the whole profit to their domestic country, but it should be reinvested in our country itself which makes it more fruitful. It creates huge tax revenue. As retail sector is not organized, FDI in retail will make it more organized which in turn creates Huge tax revenue for the government. It will help our country to bring down Fiscal Deficit as well as current account deficit. It will avoid middle men. We should know that to manufacturing a product, the maximum cost is 25% of the product. Balance 75% is divided among the middle men like C & F Agent, Zonal Distributor etc. So both consumer & manufacturer will benefit by bringing down the product cost. When FDI is accepted in other areas, these areas had become competitive as well as service oriented. Just imagine if we have only one telecom operator in our country (BSNL) and compare it with present situation. In a nutshell what our country need is more investment to create jobs as well as contribution to the GDP. Need of the hour should be, how to regulate and control FDI in Retail.
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Manish Malewadkar said: (Thu, Feb 6, 2014 07:34:30 PM)

Hello, Talking about FDI for retail in India the very most advantage we come to know is the increasing job opportunities. But is it really so. We live in a democratic country where we are said to live in unity. FDI has its advantage in many ways for both i.e. we Indians and for the Retailers. But practically the most for Retailers. As we know India is globally known for the cheapest labour. We here can create many job opportunities within India if the work is done in a unity. Why this retail chains form outside India are needed. Government should give emphasis on encouraging the small retailers to come together for a consensus. Number of retailers coming together can result into creation of Giant Retail Chain. Talking about the middle man for farmers why not government can try to make a authority which would legalize the middle man working and would monitor the exchanges are done within the given regulations which will ensure that both parties are well balanced appropriately.
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Ashutosh Kumar said: (Thu, Feb 6, 2014 04:26:18 PM)

Hello friends as we know that in our country a lots of unemployed are still searching for job, govt want revenue, and the farmer want to eliminate the middle man which usually charge high commission to make them sell their product so, if some company want to which invest in your economy and help you to get rid of these type of problem why not it should be appreciated. I think fdi in retail sector must be come into force it will curb the inflation as well as the other economy situation will also will get better. Gov should make policy which could be in the favour of our economy and should not make the MNC to charge or do the action against the economy of India.
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Mohit said: (Wed, Feb 5, 2014 11:00:14 PM)

According to me FDI should be allowed as it will create win -win situation for both Consumers base (1.21Billion) and farmers (263million). FDI will benefit us through more efficient processes and price adjusted after eliminating middle man share which will help cultivators to sell their crop at higher prices and consumers to buy product at low price.
Rate this: +10 -3

Antra Jain said: (Tue, Feb 4, 2014 04:44:38 PM)

Hello friends, Although Foreign Direct Investment in Retail will help in providing employment and developing our country but this will create a problem for small Indian retailers to exist in the market as this will increase the competition for them. For small Indian retailers it will become hard to compete with the global retail chains. Retailing in India accounts for

For small Indian retailers it will become hard to compete with the global retail chains. Retailing in India accounts for 14 to 15 percentage of GDP. Allowing FDI will benefit the consumer by lowering the price of the commodity and eliminating the middlemen but definitely it will create unemployment for semi-skilled personnel. As global retail chains will prefer to hire trained and skilled personnel. If Govt, inspite of many drawbacks, still want FDI in retail, it should have to create rules and regulations to keep control and maintain the growth level in India. Govt need to consider all the facts regarding FDI positive as well as negative before taking any step. FDI may benefit in short term by providing employment and increasing the competition to bring out the best in all the respective areas but in the long term it will benefit the global chains only. They will use our India for its own development. Instead of allowing FDI we should develop our Indian retailers to compete with global retailers by providing different growth opportunities.
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Little.Spark said: (Mon, Feb 3, 2014 06:51:26 PM)

Hello friends, I considered your pros of FDI in retail and made some arguments as below: Do let me know if I am wrong. Thanks. 1) Some say it provide employment: Why India is eager to do jobs when we can start business, as Income has contribution margin associated with it, while businesses run by Indian people can attract jobs and profit stays within Indians (so overall India is improving because 100% of profit is with India). 2) Elimination of middlemen between farmers and retailers: It Can be done by Indian govt and Indian retail start ups if they want, But I think govt want a huge capital so that they can start new schemes from that amount and eat up that money as always. 3) Prices will decrease: I agree but only at the start, to eliminate the local retailers. You would say anyways I am getting cheap products, so what is the problem. Problems is in the long run i.e. after 15 years they will decrease prices when there is competition, suppose they somehow manage to eliminate opposition so you know they will raise prices to increase their profit and weak and corrupt Indian govt as usual can't keep them under check. I mean they would bribe the govt as earlier to get things done their way. So to conclude: In all FDI can be beneficial when govt monitors pricing, employment and contracts of foreign retailers, For that we need stringent rules (law) , but the system of order in India is dull, corrupt. So first before implementing FDI in retail we need our system to be clean, so that India can really benefit from it.
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Pratikash said: (Sun, Feb 2, 2014 12:07:34 AM)

Hi All, There is much hue and cry over allowing FDI in retail sector in India. Let me put down some points. On a overall note, I think FDI should be allowed in retails with proper stringent policies in order to prevent manipulation of markets and economy and opportunities to an extreme extent. 1) Given the demographics of Indian economy, FDI wouldn't impact the entire market. It's just that people will ow have an abundance of options. 2) Going by the history of Indian economy, FDI would definitely contribute to Indian GDP. 3) India's Forex reserves would see an upswing. 4) It will definitely drive competition among the local markets both to sustain as well as excel. The government can

4) It will definitely drive competition among the local markets both to sustain as well as excel. The government can chip in to make norms easier for entrepreneurs to start business. 5) A lot of both industrial and civic infrastructure growth would take place. The government should make the policies for allowing FDI in retail to make sure of this. 6) Tax revenues will enhance significantly, which can help the government in turn to allow it for subsidies for Indian entrepreneurs. 7) Policies while allowing FDI should make it mandatory to employ local people with inflation adjusted remuneration at all times. 8) There should be strict clauses indicating termination of business in-case of any foul play by these retail giants. 9) Better technology will lead to efficiency in process, and less wastage, efficient utilization of resources say for e.g we still lack proper cold storage infrastructure which leads to huge wastage. 10) Overall inflation will be in check. So it all boils down to the manner in which government negotiates and sets the norms for allowing retails giants to set shops, so that it does not lead to complete monopoly, corruption, redtapism and exploitation of Indian people and resources.
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Bikash Sethy said: (Sat, Feb 1, 2014 09:39:33 PM)

Friends. I think FDI is very necessary in our country, because there is huge profit & taxes comes to our county. The main profitable thing is many freshers are engaged in those company. Secondly our country is not well developed like China, America, Australia etc. If we want to developed our country from grass-root level, then FDI is very necessary.
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Eklavya said: (Sat, Feb 1, 2014 02:25:19 PM)

The answer to "is FDI good for retail sector in India " is no. As India is a developing country the fdi would be a good option but we have to look basic market structure. In India the inclusion of fdi in retail sector will centralizes the marketing to a few big malls or marts and this will create a havoc among local shopkeepers they will be forced to go for jobs which are already a major issue So my solution for this is government should focus on strengthening present retail sector and bring more transparency rather than bringing FDI to India.
Rate this: +36 -4

Renjith said: (Thu, Jan 30, 2014 07:05:25 PM)

Hey guys. In my opinion FDI doesn't bring much of a change. In the long run there may be increase in the revenue & a slight increase in the GDP but what about the Indian retailers. Bringing FDI may have given jobs, but the retailers & others who depend on them will be troubled by it the most.
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Guri Sandhu said: (Thu, Jan 30, 2014 01:17:45 PM)

Hello friend. In my opinion FDI has both advantages and disadvantages, but as we India is a developing country and our economy is also not very strong, so there is a need of foreign investments but that also some conditions:. 1. They must employ the 90% Indian labourers and 10% skilled labour they will bring. 2. 70% of raw material should be taken from our country. 3. The incoming tax should be released. Advantages: 1. Increase the GDP of India.

1. Increase the GDP of India. 2. Improvement iv infrastructure. 3. Competition in market will lead to decrease in inflation and increase in quality. 4. Utility of our own raw material. 5. Learning from the skilled labourers. 6. Recognition at the world market. When these MNCs are well settled, the local companies will also increase the infrastructure, qualities, low prices. AS soon as we become more capable these foreign companies can be uprooted. By releasing them from the incoming taxes it will attract them but in turn we will earn more profit when they will export their products.
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Aman Kumar Sharma said: (Wed, Jan 29, 2014 09:22:27 PM)

Hello everyone. According to me FDI should be there in our country because of following advantage:- Inflow of equipment and technology. - Competitive advantages and innovation. - Finance resource for expansive. - Employment generation. - Contribution to export growth. - Improved consumer welfare through reduced cost, wider choice & improved quality.

- Provide access to global markets for Indian producer.


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Dhaniya Laxman said: (Wed, Jan 29, 2014 07:06:28 PM)

According to my point of view, FDI sector is good for India. 1. FDI will raise the level of competition for local retailers and due to this competition local retailers will make cheaper, effective and good quality product. 2. Consumers can choose products that suit them better. 3. FDI will increase the GDP of our country. 4. Yes, it is true that FDI can kick local retailers out of the market but the fear of getting out of the market will force local retailers to improve the quality, reduce the price and make effective products.
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Subs said: (Wed, Jan 29, 2014 05:14:23 PM)

I see a lot of Pro FDI people here. I have a view point. If we let big HUGE companies like WAL-MART in, they will no doubt benefit the people by providing. 1. More Jobs. 2. Better quality products. 3. Middle Men get kicked out. But these are the EXACT reasons that I am against FDI. By allowing these companies to come in, we would be giving too much power to them. Imagine in next 20 years, these companies would have their roots deep inside our economy and would have too much power. They will slowly start influencing decision making of our country in their favor and by then we would not be able to keep

slowly start influencing decision making of our country in their favor and by then we would not be able to keep them under check. Only Because these companies are too damn huge. Initially farmers would be happy because of no middle men. But later on, just because there is no competition from the Indian side, these huge companies from abroad could demand to raise their prices at will and the Indian farmers would have no say in it. All I am saying is this, think 15 - 20 years down the line. Of course our economy would be better than today. By that time these companies would be so huge that they could blackmail us into bowing down to them to every one of their demands or they would just exit and our economy would come crashing down. FDI, to me, seems to be easier alternative to bringing up the economy as against promoting our own companies like say Airtel, which would promote healthy local competition and hence keep prices under check.
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Rohit said: (Wed, Jan 29, 2014 12:24:32 PM)

In my opinion introducing FDI is already present in retails also in our country. There are a number of products and brands dealing in retails we can look for example in the clothes industries, there are a number of brands. Infact it was the FDI which saved our country while Globalisation and Liberalisation was introduced in our country. As in FDI an investor invests in a country in the country's currency only and therefore it helps in increasing both GDP and economy of a country. And where India stands today, if we compare it back with the India prior to 1991 is a really huge difference. So the gates should remain open for the foreign investors to invest in our company. That would certainly modernize our society and also make our economy grow at a faster rate. In addition to that it also produces a large number of employments for the people. If our people are not doing so much fir the growth of our country, if Indians don't have such a big vision or dream, let the government take appropriate measures to make our country reach at a good level. US is very much open to any kind of FDI in it and you can see the rate of development there. Considering the millions of retailers in our country, they are still there and would always be there. Its just if they produce a product good enough with reasonable rates that people don't mind in buying than how is it possible we as a common man would buy the same thing from a foreign brand (except for the few cases of brand conscious people).
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D Sridhar Rao said: (Wed, Jan 29, 2014 12:19:06 PM)

Hello Friends, In my opinion bringing FDI will definitely increase our GDP, by creating more jobs and increasing purchasing power etc. But at the same time we should see that exports of our products to other countries also should be increased. When we are importing their products then why not our products exports are not at par. If you see the history of any developed country, their GDP is high only because of exports not because of imports. So, we should increase our products quality levels in-order to match with foreign brands and should be export to other countries. We should see that our exports is always greater than imports. This is the thumb rule to increase the GDP. It is not so easy task. We have to compete with world business leaders. Our political system should be very strong. We have to create our brand image in the World.
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Risha said: (Wed, Jan 29, 2014 11:45:17 AM)

Hello, I don't think that FDI would really affect the small retailers because the shoppers of small retail store are very loyal to them, they even don't go for shopping at the supermarkets and hypermarkets. It is true that FDI will bring employment, variety of products, great infrastructure but when there are organisations such as future group, reliance, etc then the Indian Government should encourage Indian retailers in association with the farmers to serve the country with quality and fresh products.
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Ujwala said: (Wed, Jan 29, 2014 11:06:37 AM)

Hii all, FOREIGN DIRECT INVESTMENT will be a disadvantage. I'll explain it with example, suppose a pen costs rs 10/- local retailers are buying some 100 pens selling each pen at 11/- to earn a profit of 1/- on each pen, whereas FDI will

retailers are buying some 100 pens selling each pen at 11/- to earn a profit of 1/- on each pen, whereas FDI will buy a bulk of 1000 pens and when they are buying more quantity then local retailers, the producers will show interest by selling them to FDI people. When they come into the market, at starting they will sell it at 9/- people would prefer buying from the malls then the local retailers, this slowly makes local retailers to loss, then slowly vanish from the market, Then the pen which costs 9/- will be increased to 12/-, people who don't have an alternate choice will be buy this pen at 12/-They are attracting the consumers and also earning the profits, This is a disadvantage to the local retailers, and further also to the people, who are purchasing. As India is a developing country, it entertains FDI Only 100% on one sector which is tourism sector which is less disadvantageous, when compared to other sectors.
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Ajay Agarwal said: (Tue, Jan 28, 2014 08:43:22 PM)

Good evening everyone, According to my point of view FDI in retail should not be allowed in India because of the following reasons: 1. FDI would mean demotivating the Indian entrepreneurs, who are capable enough to start up their own industry but due to constraints of fund there fail to fulfil it. 2. Government should rather try to provide opportunities to Indians so that they can grow there own business well and create employment. 3. The fact is that allowing FDI is not the only way to improve the CAD, because we are very strong on the export front be in fields of iron, cotton or agriculture products, so we should focus on this. Government should try to ease the export norms. 4. Government should make a serious effort to remove the service of middlemen who are eating away lot of margins so that the business can prosper well. 5. FDI would strongly destroy the local Indian market. 6. I don't think FDI infusion can provide employment to every Indian situated in backward places. 7. So far as infrastructure is concerned Indian government has enough source to provide better service but due to its own slow policy structure and corruption it fails to do so. So instead of focusing on FDI' India should try to improve its own policy structure and norms.
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Ankita said: (Sun, Jan 26, 2014 08:16:56 PM)

Hello everyone. In my opinion FDI in retail sector would not help to combat current economic situation due to these reasons:. 1. It would not serve any good to those who are involved in UNORGANISED retail. Our organised retail sector is still at a nascent stage. 2. Retail sector is the largest source of employment in our country after agriculture and has a deep penetration into India's rural segment. So, rural people are going to get jobs easily in malls and air conditioned branded showrooms due to lack of proper communication skill. 3. Due to lack of transparency and proper regulation norms in the country, it would act as another source of increasing corruption and red tape in the country. 4. Small scale industries and MSME enterprises would slowly disintegrate and move out of the market. 5. Even if foreign companies employ Indians, how much are they going to pay? A mere salary of Rs. 5000/ month isn't enough for a youngster to fulfill his/her dreams or to fulfill family needs! Instead of introducing FDI, our government should rather support the industries and retailers in the country itself with better policies and financial aids. Even if there is no other option than FDI, then also it should be not implemented like this at a war footing. At first, it should be implied on a small segment of retailers while taking care of the consequences properly analysed. Yes, China did prove to be a great success in implementing FDI but we should not forget that India has LAW but China has both LAW and ORDER.
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Sudhakar Anand said: (Sun, Jan 26, 2014 11:50:53 AM)

Sudhakar Anand said: (Sun, Jan 26, 2014 11:50:53 AM)

Hello friends. In my point of view FDI is good for India because in India corruption is more. Foreign investment was introduced in 1991 under Foreign Exchange Management Act (FEMA). Current Population of India in 2014 is estimated to be 1.27 billion. Favor: This will bring modern technologies to the country. Improve the infrastructure. Consumers will get commodities of daily at cheap cost. Reduce the wastage of agricultural products. Improve the gross domestic product. Which are the sectors where FDI is not allowed in India? I). Atomic Energy. II). Lottery Business. III). Gambling and Betting. IV). Business of Chit Fund. V). Nidhi Company. VI). Manufacture of cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes.
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Ashish said: (Sun, Jan 26, 2014 01:13:27 AM)

Hi good morning to all, as per FDI is concern, it will obviously bring the benefits for india, that may be seen to improve economic growth or it will also be helpful to remove the unemployment in India. See by means of FDI the company will also be benefited and on the other hand it will also create somewhat opportunity among the indians.
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P.Dineshkumar said: (Sat, Jan 25, 2014 09:36:10 PM)

Everyone says that if FDI is allowed to India it will give number of job opportunities for Indian people. But my question is why can our Indian not people start the company? because ashok leyland, TATA EICHER, maruti mahindra etc these are the some of Indian companies they are giving job for people. If number of companies are started by Indian we can fulfill our job satisfaction ourselves. It will improve economic growth. Technology is being grown in India so that we no need to work with other companies. I say reason why FDI should not be allowed to India. It will affect small manufacturer's growth it will lead to reduction of taxi to government we think that we can get job. We can get more salary by FDI. But the foreign companies will get more income this will help to their countries growth only not for India. So that the Indian government should encourage and give offer to Indian people to start company. THANK you.
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Moin Khan said: (Sat, Jan 25, 2014 09:08:55 PM)

Hello friends, As a coin has two sides, everything has its positives and negatives. I think due to FDI many retail sellers are being destroyed. These foreign companies are acquiring the whole market and attracting all the retail customers. Many lives are on stake due to these companies. Though these are giving benefit to the govt and Indian economy they are ruining the lives of common people who depend on trade. I think FDI should be allowed in India but the govt must take decisions in interest of people not against the people. I think govt must keep some limitations to FDI investing in our country.
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Raja said: (Sat, Jan 25, 2014 06:05:45 PM)

Hello everyone, fdi in retail sector is a good idea for the point that it creates employment and development but on the flip side it has disadvantage too. Since many of the families who depends on farming and small size retail, it would be surely affected because majority of the country include villages and towns.

would be surely affected because majority of the country include villages and towns.
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Rohit Sharma said: (Sat, Jan 25, 2014 11:01:36 AM)

I think that If FDI comes in India then the situation in India will again become as it was before 250 years ago. The History will repeat itself. India will again become a slave of english country. As East India Company had taken control over India this time Wal-Mart will do the same thing.
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Vineet said: (Fri, Jan 24, 2014 11:49:19 PM)

I think FDI is good for India. It will not only help in improving our GDP and economy but also it will increase job opportunities for Indian's, Because I don't think foreign companies are going to bring their workers or all of their product's to India with them, but absolutely they will heir worker's from our country and buy good's from Indian Industries and Farmers directly which will also help our farmers and industries to get appropriate price for their products.
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Rishu said: (Fri, Jan 24, 2014 11:41:59 PM)

Hi All, I think FDI in retail is definitely good for India due to numerous reasons. FDI will. 1. Boost Indian GDP by bringing in money. So development can be done in country. 2. It will create numerous jobs in India where unemployment is large. 3. It will help in curbing inflation by removing middlemen and taking care of consumers directly. 4. It will benefit farmers as it will help them in getting more price for their crops as no middle men is involved. 5. By removing Middlemen it will help in decreasing black marketing (hoarding) of certain food items as we see in case of Onion prices. FDI in retail has helped in communist country China and we all know that where China is today in terms of GDP. Some people will definitely say that it will impact small retailers. But I think keeping in view that these stores will not be present everywhere and people will prefer nearby stores this problem will also be solved. 6. FDI will help Government getting more money in form of taxes from these stores too. 7. Steps such as minimum sales of 30% has to come from small traders will help small traders. 8. FDI will help getting better quality and different variety products to the consumer. So in short FDI in retail is really good for developing country like India.
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Nitin said: (Fri, Jan 24, 2014 10:02:07 AM)

Now days in every corner we see people are discussing the pros and cons of FDI in retail. In my opinion first we should understand the proposal of the cabinet. In the initial stage only 53 cities will be covered having population not less than 10 lakhs. So I do not think it will impact a large portion of our population and it will suddenly create job loss to the middlemen. Already we have reliance and bharti, which are Indian companies in multi brand retail but that does not mean all the local shops has been vanished from the localities. The biggest advantage of FDI in multi-brand retail will reach to the farmers and consumers. Farmers will get the right price by selling their crops to these companies directly and as the margin of middlemen is not their so it will definitely control the price of final product.
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Mausumi Mohanty said: (Mon, Jan 20, 2014 11:01:30 PM)

Hi everyone. I am Mausumi,

Hi everyone. I am Mausumi, I think FDI should be allowed in India because it has a lot of positive impacts. But it won't be correct to take a step forward every time towards FDI thereby ignoring its negative side too. It won't raise the living standard of every Aam Admi. India should only welcome FDI if it has successfully restructured its economic and financial infrastructure, marketing networks, transport and communication systems etc such that the benefits of FDI can reach each and every rational animal. Only then can the fruits of FDI can be enjoyed in India.
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Harbeer said: (Mon, Jan 20, 2014 07:53:54 PM)

Good morning every body, I am totally against foreign direct investment. I want to discuss it's disadvantage through some following points read carefully. 1. If FDI comes in India then increase the no.of unemployment in India. 2. It is like a poison for India because due to FDI the abroad companies stable in every field even in rural area. 3. If the USA company Walmart and other companies is fruitful then its stable in India. Its will be stable in own country. 4. According to Indian government FDI don't invoked in production companies. 5. If we are gives Indian companies preference to foreign companies and we (Indian) used only used domestic products. Then India become almost richest country again. 6. If FDI invoked in our country then the foreigner companies sell only own country things then the Indian companies are automatic closed because Indian companies can't sell Indian things in India. India become again servitude of foreign countries.
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Rishabh Devgan said: (Mon, Jan 20, 2014 03:57:30 PM)

In my opinion FDI in retail sector is good for India because of many reasons it will help India in improving its economy through increase in GDP growth rate, farmers will be benefited through this and its will also raise employment in our country.
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Ishu said: (Sun, Jan 19, 2014 03:20:21 PM)

FDI in retail has become a hot topic of debate now a days in our country. I am completely against the FDI investment in India. Though FDI is a great tool to increase our GDP rate but the common man of India is not getting a single benefit of it as a large number of Indians belong to poor and middle class. This leads to large number of local uneducated people unemployed and has created a big difference in the lifestyle of rich and the poor people. The poor are not getting even the basic facilities. So, I think the government should focus on first providing the basic amenities to these poor people and then should allow these companies to invest in our country. There is no less brain power in our country. IITs and IIMs are producing the world class professionals. The need of the hour is to utilize their brain power to maximum level and reduce the problem of brain drain. Government must try to enhance the entrepreneurship skills so that we ourselves can produce better and cheap products affordable by a common man. I completely agree with Arvind Kejriwal's decision for withdrawing the permission for FDI investment in Delhi. We need a change like this.
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Prashant Gade said: (Sat, Jan 18, 2014 09:18:44 PM)

I think it is not good to our country to accept FDI System because it is not beneficial to our country, it is totally profit gain by foreign companies not to our India. Our shopkeepers provides a good facility to us, they can agree with the bargaining as well as give us warranty of product.
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Rasu said: (Sat, Jan 18, 2014 02:36:46 PM)

Rasu said: (Sat, Jan 18, 2014 02:36:46 PM)

According to me, FDI is not good for our country growth. Why our country depend on some foreign country firm. If foreign country set up firm in India then there will be loss for small business. People are willing to buy more foreign country product and this will effect our India business.
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Nishant Patil said: (Thu, Jan 16, 2014 11:38:43 AM)

I think FDI is good for India. Because population of Indian country is high. Therefore new investment of new companies is must require. They create job. For most young country in world. And there is no more Indian companies In India. Most of companies are foreigner. Therefor can't stop FDI.
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Mangesh Khade said: (Tue, Jan 14, 2014 05:45:47 PM)

As per my point of view, yes FDI has two sides. In case of positive side FDI introduces new technology that are implemented in other country, also gives good quality of product in attractive price and increases the economy of country. In case of Negative side impact of FDI falls on small retailer. Thank you.
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Anuj Gupta said: (Sun, Jan 12, 2014 03:48:06 PM)

Hi Friends, I am not the against of FDI. But the thing is that we should ask to our self that "DO WE REALLY NEED FDI" in India? I want to take your attention to the our political situation and corruption in our country. All of us are well aware of it. If Indian governments really want to improve the economical condition or want to increase GDP. Then why not they are stopping corruption and taking back the BLACK money from Swiss bank and not even passing the "STRONG LOKPAL" bill. So it is as simple as that, they are looking for their benefits their profit not ours (citizens of India) or for country. So if they really want to improve the country's GDP or they want to improve the living standard of Indians. Then there are so many things to do. 1. Pass the Strong lokpal bill. 2. Support the domestic companies. And so many thing is there to do. Thanks!
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Akash said: (Sat, Jan 11, 2014 09:08:17 AM)

I am in favour of this topic of debate whether FDI is good for India or not. As we know that there is problem of economic slowdown in our country, many foreign investors are now pulling out their money from India because of which India is facing serious economic issues. So FDI is a good option for India via which our economy can improve. FDI will provide the following benefits to India: 1) High GDP growth. 2) Growth in Infrastructure. 3) Low Inflation Rate. 4) Farmers will be gainers as money will flow directly from customers to producers. 5) All products will be available under a single roof. 6) Customers will get products at cheap price.

6) Customers will get products at cheap price. 7) Exports will be more, bringing in more Forex reserves to India. 8) CAD % will decrease to normal. 9) More employment opportunities. Etc and lot more benefits. I think after getting so many benefits, it's wrong for BJP opposing FDI in India just to protect its domestic manufacturers. Domestic manufacturers should compete with FDI by formulating various strategies to survive in the market. Competition between the two will take India's economic growth to the next level.
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Shridhar said: (Fri, Jan 10, 2014 10:46:16 PM)

In my pt of view, the FDI is the one which can improve our economy but upto a certain limit because firstly they will provide the products with cheaper rates then energy consumption will increase in INDIA itself. But the local products would not be money friendly with the customers so that they will remain as it is, it may leads the local unemployment. So FDI may be or may not be power of economy.
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Arindam Jaiswal said: (Thu, Jan 9, 2014 07:12:27 PM)

I can give pros and cons but I think taking a side and convincing others on it, proves how good I am at convincing. I am against of FDI in retail. I think Indian government should correct its system, ease the procedure for starting a business for an entrepreneur and help in financing those entrepreneur. It also should increase the investment in research and development in each sector whether it is food or in technology. If we have a better products and technology we our self will be capable of making a good quality products at cheap prices. We will also be able to sell our technology in foreign country and do business over there. We should not be very proud that foreign co's are coming to India. We should be proud when our products are available in all the countries (like KFC, pizza hut or McDonald). Foreign co's are very much aware of the corruption level in India, they will try to take advantage of this situation and buy those middle men and get their work done. They will make India more corrupt. We all must have heard how WALL-MART has paid for lobbying in India. It was reveal by the US itself. It is said that FDI will create jobs. I agree. But I want to ask one thing why India is so eager to do jobs? when they have the ability and opportunity of doing business. Why America has so many co's ? because their has promoted entrepreneurship not jobs. All big food chains of America sell a very simple foods but what made them to earn billions of dollars its r&d and help from government.
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India GDP Retail Sector Retail Prices

Dinesh K Baragaon said: (Wed, Jan 8, 2014 09:01:58 PM)

Hi, Dear friends, we have discussed a lot on profits & losses by FDI. But as I think FDI will boost our Indian economy, Because our purchasing power will not going to reduce If they will give us little cheaper we will buy more, else we will be with our Indian Shop keepers Or If they kept their promise, they will need Human Resources because It is not coming from their countries as they already facing this problem that's why they are Outsourcing in India (As BPO's are very developing business in India because of Foreign companies). Or If we talk about Indian cultural products, then we already started neglecting these as we are moving towards Western culture day by day, we are following or competing foreign countries in technological development. Or If we are more attached with our Indian taste only then It may not be a big deal for them, they are coming to sell us in retail, they will surely sell us what we want. Like McDonald (A foreign food chain) has not launched any food item made with Beef, Only because we never wanted that. So same can be in Retail (FDI) also. I am sure we will earn with FDI as much as we are earning by self, even little more.
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Shweta said: (Tue, Jan 7, 2014 03:33:58 PM)

Hello friends, I think FDI itself is a hot topic in market, from my point of view, we should see only its ultimate results on aam aadmi daily life, because India has 70% population of lower & Middle class peoples. Who can not afford the products worth value higher than their needs, they will never go to with those products. If a man buying his daily needed things in thela also in cheap prices than why he will buy the same product in higher cost. On the other hand yes FDI will increase GDP but what's the point, Aam population will not get even 1% of profit from it, because of our politics. So I think if government has decided to take FDI in retails, then we should fight for our rights and try to get better results from it rather than thinking on FDI Pros. And cons.
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Janak Maheshwari said: (Mon, Jan 6, 2014 09:19:08 PM)

I'll not take a specific side on this topic. FDI in retail has its own pros and cons. On the positive side, there are obvious reasons. FDI or Foreign Direct Investment will increase investments in our home country leading to boom in the market. Income of people will increase leading to increase in purchasing power. On the whole, there will be economic growth of a country. Looking at the current scenario of globalization, a country cannot be restricted to its domestic produce only. On the other hand, increase in FDI will drive out local competitors and retailers from the market. Domestic market will decline leading to a bit of slowdown in economy. So, FDI may be very advantageous if used in a right proportion.
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Shalabh Saxena said: (Mon, Jan 6, 2014 08:32:31 PM)

No doubt that FDI policy would be considered as good for the country. However the small retailers can't take so much profit from FDI in Retailing because in India, the retailers are required to keep more benefits with building the healthy relationships with the company for promoting their products for the end customers. They generally require more benefits with the small investments. Besides these activities of moving goods from one country to another the chances of growth of the economy is much higher but fulfilling of the commodity is beneficial for satisfying the needs of the customers which leads to enhance the market share of the company in another country then the demand of the customer diverts to another company's product. With providing a variety of products beyond the country, customer enjoys a supreme importance in the market.
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Vineet said: (Sun, Jan 5, 2014 05:29:24 PM)

Yes, FDI is in retail sector good for India. Firstly I want to tell you about the FDI. FDI means Foreign Direct Investment, When any foreign company are investing their money directly in host country then is called FDI. Through FDI. The Economy of the country will increase because of consumption will increase in India. Purchasing Power of people will increase. The flow of Money will increase in India.
Rate this: +17 -30

Prabhu said: (Sat, Jan 4, 2014 07:13:53 PM)

In my opinion is the fdi will affect the Indian retail market. Why because most of the foreign companies directly invest to the Indian market. I have agree onside the Indian economic should be increase but the small business men should be affect adversely their business and the local market tend to lose their leadership. Please if you

revise the history we know the foreign companies foot their prints and then what happen. So please avoid to buy these fdi companies and compete against these companies.
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Vishal Kumar said: (Sat, Jan 4, 2014 12:06:46 AM)

See first of all I would like to say that FDI in retail contributes to about 14 % in GDP and approx. 8 % to the employment. Now looking at its benefits : 1. Definitely more employment generation. 2. Increased infra. 3. No middleman. 4. Economic growth. Now the one who is saying it will spoil India for them I would like to say : Look at the rules of government they clearly say that it will be implemented in those towns which have more than 1 million population and out of 800 towns only 54 (approx) cities fulfill that criteria. So how it can destroy the market. For general stores and others ?
Rate this: +74 -11

Nishikant Subhashrao said: (Fri, Jan 3, 2014 10:42:20 PM)

Hi friends, From my point of view fdi in retail sector is good, because it not only create employment but also provide growth opportunities to Indian companies who can collaborate with foreign companies to start business in various sectors also. So its one forward step.
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Nishu said: (Fri, Jan 3, 2014 01:40:18 PM)

In my opinion it is good to have FDI in retail sector in India though it got some side effects but if done with complete supervision and proper execution by government and bureaucrats it will be quite beneficial for our country. Below mentioned are the points in its reference. Benefits: 1. Improves the foreign exchange position of the country. 2. Will help in economic growth at the time of inadequate capital. 3. Employment generation and increase in production. 4. Help to transfer the technical, management and intellectual skills. 5. Capital formation by bringing fresh capital. 6. Build competition in the local market and thus leads in increasing the efficiency. 7. Increase in exports. 8. Increase in tax revenues. 9. Helps in increasing the GDP rate and boost up the economy by reducing the CAD of our country. 10. In the context of local farmers, will help them to get what they deserve for their agricultural products by elimination of brokers who tend to consume part of the actual product price and farmers left with 1/3rd of the price. 11. Generation of more good storage facilities which our country is deprived of and hence there is lot of wastage of the crops and grains. 12. Yields better quality and there will be lot of varieties. 13. Due to lack in planning and execution no proper prices are set for the products but with this FDI policy there is a possibility that it will be vanished.

a possibility that it will be vanished. Losses: 1. Local market tend to lose their ownership. 2. Not able to compete with the advanced strategies and implementation that the foreign companies will come over with. 3. Outsiders tend to build the monopoly in the market and taking over the profitable sectors. 4. The government will not have much control on the wholly owned subsidiaries. 5. Foreign companies emphasis more on investing in machinery and intellectual part rather than paying wages to the persons. So, to conclude this I would say its far better to have such policy in retail sector in India instead of picking out the drawbacks as its has less bad effect and would not last long if executed properly by our respected government.
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Dhara said: (Fri, Jan 3, 2014 11:01:23 AM)

I am against of FDI because. If FDI will come to india, then people will stop buying Indian products only because it is cheaper than domestic products. In that case retailer will affect adversely. Not only retailer and kirana shopkeeper but whole chain, starting from manufacturer to retailer. They all will become unemployed. And FDI will give employment to only skilled people. & right now India is facing a problem of unemployment. It will increase unemployment instead of decreasing. !
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Dinmab said: (Tue, Dec 31, 2013 12:38:40 PM)

I don't understand who gave authority to govt to dictate how I should spend my money or where I should spend my money. I see a lot of hypocrisy in this topic. 1) We call ourselves democratic but want a authoritative action in this issue. Let companies come in and then let people decide if they should shop in those places or not. That is democracy. I don't have the right to tell other people where they can or cannot shop. 2) Another hypocrisy is with all of us, we are OK with Pepsi, coca cola destroying our local beverage companies, we are OK with buying cars, phones, computers from foreign companies, BUT if these products are sold in a wal-mart it is wrong ? If people who say this will affect local business are sincere, shouldn't they buy only made in India products ? All these imported products are causing greater damage to the economy in that case. 3). IS it a good idea to prevent foreign companies to protect local business, I say no. Local business should be able to compete with any foreign brand. IF we have a son/daughter we want them in the best school and compete with best students to get the best results from them. Competition drives performance. We won't tell, I want my kid to be in top 5 ranks in a bad school. We want our local businesses to compete and do better than foreign companies. Then we want them to go out of India, open shops in other parts and drive exports. Govt should not show partiality to companies based on their origin. People can if they want to, if people decide we should buy made in India products that is ok. Govt dictating that all people in state/country cannot buy products from a shop A is totalitarian and very bad for personal liberties. We as citizens should not give up our liberties to government.
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Rahul Jayker said: (Sun, Dec 29, 2013 09:40:09 PM)

I definitely disagree to FDI in India. In the begining FDI brings down the cost of each and every product that it sells in the market, since it has trade in many other countries it gets the product from the country where it is cheap. So people move to those products and there will be no one to buy the products from our own retailers. Thereby it supresses the retailers. As day goes by, there will be no competition and FDI has great impact in raising the price of the goods.
Rate this: +28 -9

Ram Sharma said: (Sat, Dec 28, 2013 01:02:41 PM)

Hi friends. In my opinion fdi has some good points and some bad point. I think we should evaluate the ultimate result of fdi rather than advantage and disadvantages. I think ultimate results are bad for us from fdi as. (1). Loss of control in market. (2). Net profit earned by foreign companies. (3). Middle class who never afford the these purchases and small grocer are closed. (4). It is not good that outsider earns money by selling our products to ourselves. India is a self depended country and no need to revise the history like east India company came in 1600 century.
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Racheal said: (Thu, Dec 26, 2013 03:46:39 PM)

Hi, Every coin has two sides, similarly FDI also has its own pros and cons.

Pros: 1) Elimination of middlemen between farmers and retailers. 2) Farmers will get better prices for their products (gain by eliminating the middle man). 3) Lower / Reasonable prices of products for the consumers. 4) Increase in employment. 5) Improved quality of products. 6) All above contributing to a better livelihood. Cons : 1) Un regulated FDI. Indian government should bear in mind that the amount of FDI to be allowed should by no means give the control of Indian market in the hands of outsiders (foreign nationals). 2) It may even result in Indian products losing its stand to the imported goods. 3) Though its said and believed that FDI would majorly provide better prospects of growth for farmers, its easier said than done. Thank You.
Rate this: +41 -8

Ashwini Tarkar said: (Thu, Dec 26, 2013 12:44:39 PM)

Saying no to FDI is like saying no to development. Our economy has already opened up for foreign direct investment since 1991 and it had helped us a lot on improving the economic condition of our country. Adopting this conservatism for FDI in retail is not a good sign of developing economy. FDI is not only a matter of foreign investment coming into the Indian market but also more employment, elimination of wholesalers and a good price to our Indian Farmers who had been exploited by these middlemen.
Rate this: +12 -8

Arjun said: (Wed, Dec 25, 2013 10:57:16 AM)

Hi friends. Allowing FDI in retail sector its will to the Indian economy as well as GDP. Benefits:

Benefits: 1). 2). 3). 4). Infrastructure will develop in India. Formers will benefit directly. Increase the employment. All brands in one roof.

5). Quality products and best price. 6). New technology.


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Ambar said: (Mon, Dec 23, 2013 09:58:52 PM)

In my point of view I think that FDI is not increasing the economy of India. Because whatever the the FDI is investing in our company they take all the profits every year and they leave nothing. So, India government had to thing for this.
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Akilan said: (Mon, Dec 23, 2013 04:59:34 PM)

According to me FDI is not good for our country. Most of our friends told FDI is good for INDIA only because farmers will be taken advantage and employment opportunities for us. But why can't we can do the same kind of system by ourselves. Now a days we can't see the Indian made pocketed snakes in any stores. Everywhere the colored cover foreign chips and cool drinks I don't want to mention the brands. The same will happen for our own agriculture products if we allow the FDI. At initial stage rate can be mutually beneficial for buyer and seller. But later the rate is in their (fdi) hand. We should be aware of that. Thank you.
Rate this: +60 -6

Amit Sharma said: (Sun, Dec 22, 2013 09:28:03 PM)

Hello friends. FDI in retail sector is a good decision. By fdi we will get valuable products and our quality will increase. Also through fdi we will get more option. But there is a big loss also, as India is already suffering from unemployment problem, so this will lead to more. In fdi we should convince to public that it will be prove a better option in retail sector and we should corporate it.
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Nehal said: (Sun, Dec 22, 2013 03:32:29 PM)

Because of FDI many companies are entering into Indian Retail market and their might be a possibility that employee would join foreign Retail companies or would prefer to work there instead of working with Indian retail companies. So what changes Indian retailers should make in their recruitment policies so that employees stay & prefer to work with them rather than joining foreign companies?
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Vartika Jhindal said: (Sat, Dec 21, 2013 07:09:28 PM)

Hello Friends, In my opinion FDI should not be encouraged in India as it will lower down the small retailers because people will try to buy foreign products. And as a result small retailers or say small businessmen would be forced to work under these FDIs.
Rate this: +6 -9

Gaya3 said: (Sat, Dec 21, 2013 05:48:16 PM)

Hello Friends, According to my view, FDI is a bane to our society. Since, we tend to lose our own socio-cultural products by their inherited one. The hybrid and genetically modified products has great chance to affect the health of our people. Inturn we as an individual entity or an organisation can made FDI in other countries, which will provide a greater chance for increasing our economy and GRD.
Rate this: +10 -3

Trisha said: (Sat, Dec 21, 2013 12:56:15 AM)

Hello friends, I have drawn a simple conclusion from all of my friends that. FDI is good and bad also like if there is a employment the unemployment also resides there, if there is a advancement of technology then its side effects also resides there. With this I just want to clear out that every coin has two phases it depends on we peoples which side we would like to choose. Good or a bad. Boon or a ban.
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Pallab said: (Sat, Dec 21, 2013 12:31:44 AM)

FDI is retail has both its positive as well as negative impact in a country. FDI in retail will provide a ground for the unemployed population by providing them jobs. But on the other hand FDI may also exploit the domestic resources and make the small retailers as well as the kirana shops are going to suffer to a great extend. Another benefit of FDI is that it will bring technology and paved the path towards development of our country. So, it completely depends on the policies of the government how they would imply upon FDI in retail.
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Rajkumar said: (Fri, Dec 20, 2013 01:38:50 AM)

According to my point of view, yes FDI is good for India, because it provides employment services which is the major problem nowadays for us and also it leads new technologies in India and thus also we can adopt their technologies which indirectly will help to raise up our economy.
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Aims said: (Tue, Dec 17, 2013 08:37:51 PM)

HI, FDI and FDI. What is the Core Issue? We needs development in Retailing, Food Processing and Marketing. FDI is a good concept but should we adopt this? In my View Government Should think of alternative policy in which we can develop our skill to achieve the goal of FDI in an indigenous manner. The Corporate, Cricketer, Star, Politicians, and Individuals should come forward to develop our retailing sector to an advance step in PPP mode instead of FDI.
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Vivek Kumar Sharma said: (Tue, Dec 17, 2013 08:00:08 PM)

Hello friends, According to me I would not agree that FDI in retail will allowed because it will increase the competition for domestic players as well as affect the economy by taking part of their profit to their own country. It will increase their GDP. Instead of allowing FDI we shall bring same technology which a foreign players are bringing and by using local labour force we should produce within the country. In return all the profit will be within us which increase our

economy growth.
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Bhargav said: (Tue, Dec 17, 2013 05:29:46 PM)

Hi friends, In my view FDIs are a good opportunities to pull foreign currency in to India. Government is aiming to attract them for the same purpose. But many times, we Indians belittle Indian retailers and buy foreign products at their retail stores at an amount that foreign retailer need not bring new foreign currency to establish new retail store. He can open a new retail store with the revenue he has got from existing store. This is defeating the purpose of bringing foreign currency in to India.
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Mani said: (Tue, Dec 17, 2013 05:17:19 PM)

In my point of you, FDI is very indispensable one to India. Because of FDI our country is being developed. FDI companies make employment for people. Though there is problem for small companies in retail. FDI increases our India's GDP. Recent analysis shows our GDP rate got decreased to 4% that is to 4.5 millions from 5 millions. So according to me FDI is very important.
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Sunil Kumar said: (Mon, Dec 16, 2013 08:47:45 PM)

Hi friends in my view FDI had made benefits to us. By introducing FDI products it increases economy of foreign country not ours. It also helps creating popularity of foreign products, decreases the demand of ours products.
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Bhaskar said: (Sat, Dec 14, 2013 03:04:25 PM)

Hello everyone, As per my opinion FDI in Indian retail sector is good to our country economy why because If we see in the point of farmers they are suffering with reasonable price for their crops. If we allows FDI then the Indian farmers get more opportunities to sale their products and also get reasonable price, and also in our country the major problem is unemployment with the FDI many of our people get employment and the communication skills will developed technology will develop Our country GDP will go high.
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Surendra said: (Sat, Dec 14, 2013 12:29:08 AM)

Hello friends. According to me FDI should allowed in the form of two term. 1 - Short term. It should come for a short time of period by this our technologies. Intelligence will become modern like developed country. And when foreign investment more in India then $. Comes more and GDP ^ employment increase. But, 2 - Long term. It should not for long period of time because of it may become Monopoly after a long time. Mainly it affect domestic and unorganized employment.
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Mr. Nv said: (Fri, Dec 13, 2013 05:42:48 AM)

Hello friends,

In my opinion the FDI is better in retailer sector is good for India i.e. by introduction of FDI in market the competition will arises high for Indian retailer, thus people have the choices of buying the better quality product insuring secure free from health problems.
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Ravi Kumar said: (Thu, Dec 12, 2013 10:30:44 PM)

Hi friends, Every coin has two sides. This is also true in case of FDI. I think now I don't need to explain what is FDI. Every one here familier with this topic. I am going to say positive and negative effects of FDI. POSITIVE EFFECTS. 1. Instead going abroad we can get better job in India. 2. As we know storage is a big problem for Indian farmers. So with the help of FDI infrastructure will develop which reduces the wastage. 3. Variety of products at low cost will be available. 4. With the help of FDI, we can enhance the GDP of our country. 5. Today farmers are not getting good price for their products and no guarantee of purchase. This will be removed after FDI. 6. Better employment opportunities will be created. NEGATIVE EFFECTS. 1. Small retailers will be slightly effected. 2. Only a group of skilled people will get job. 3. Their main aim will be more and more profit. So in conclusion we can say FDI is more beneficial. We can neglect its negative effects.
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Swapnil said: (Thu, Dec 12, 2013 08:16:55 PM)

In my point of view FDI is good for India, As it will : 1. New job opportunities for the country. 2. Remove the mediators, contractors who are a major reason for inflation and corruption. 3. Improve the economy. 4. The value of rupees as compared to dollar will improve. 5. New varieties of species will be formed. 6. No fear of being cheated on the base prices.
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Mritunjay said: (Tue, Dec 10, 2013 09:38:25 AM)

FDI in Retail sector, I think that its best of any market not only retail market because Foreign direct investment is an connectivity of national currency and international currency, We invest money and we get it in dolor price and we get extra benefit for this type of investment and our Unemployment rating is goes down.
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Hemu said: (Thu, Dec 5, 2013 11:01:26 PM)

Hi friends! according to me FDI in retail sector is that positive step which INDIAN govt took very late. Its a great step taken by our government because it will allow foreign direct investment in our country which will not only boost our economy but also will create a lot of employment opportunities.

We talk about saving our local kirana walas but we forget that this kirana walas are the person responsible for child labour because almost all of them has child labours which are paid in very less amount. Imagine the pain that FMCG companies goes through and those extra cost in distribution which they incur due to highly unorganized retail stores, the traffic they create on roads, the unfair competition they promote, the farmers who are not getting what they deserve for their agri products, the employees who are getting very less salary. All this problem can be dealt in one shot. It will be beneficial for farmers also because there's a clause in FDI which says that 30% of the procurement has to be done from the local farmers. Its a win win deal for all of us.
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Srinivas said: (Thu, Dec 5, 2013 11:58:49 AM)

Allowing FDI into our economy is not at all good for us, due to FDI many small stake holders are going to face problems. It causes more unemployment in India as we all see many people who had excellent academic backgrounds are still remains unemployed. So due to lack of job opportunities many of the people turns their attention towards business. There is no concern about small or big. FDI helps our economy on one side but it damages our pride on many sides. I am not saying that FDI should not be allowed, it can be allowed but the role of FDI in our economy must be limited. Our government must give preference to our own products.
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Mangai said: (Wed, Dec 4, 2013 11:51:16 AM)

Hi friends. In my point of view, FDI is not good for India. Because, Foreign direct investments affect the domestic market and the retailers in India are much affected by FDI. Cheap imported goods may wipe out Indian products. Local farmers will get benefit only if these companies procure from them. What if they don't? So, FDI is bad for our economy. Thank you.
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Nikhil said: (Sun, Dec 1, 2013 08:06:33 PM)

Hi everyone. FDI in India has its own pros and cons, if we look at the brighter side. 1. Fdi brings a lot of forex to our country, it strengthen our economy by reducing current account deficit of our country. 2. If I'm not wrong, it will generate at least 8 million jobs. Unemployment, which is one of the major threat in our economy will subside. 3. It will create market competition, providing immediate benefits to Indian customers by providing quality product. 4. Many points are already discussed by friends. Now if we look at darker side. 1. Our local retailers and shopkeeper will feel insecure. 2. The mnc will have monopoly. But if we have holistic approach we can easily mitigate the drawbacks. By implying stringent rules and regulating the mnc will reduce their monopoly. In rural areas shopkeeper still will have upper hand. It all depends how our government and bureaucrats handles this opportunity. Thank you.

Thank you.
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Vikas said: (Sun, Dec 1, 2013 02:57:01 PM)

Hello everyone. FDI is good for our economy. As India is a developing country. We can't make progress so effectively without the help of foreign investments. The main reason for GDP decrements was that foreign companies had stopped investing in India. And the result come from it was the GDP of 4.2 in the month of September. India again started progressing and GDP again raised to 4.8 till now according to BBC news. Moreover, If you are thinking of cutting the snake's head it is just like destroying yourself. But one thing we can do is Holding tightly the snake's head.
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Himanshu Bansal said: (Sun, Dec 1, 2013 12:27:16 AM)

Hello friends, FDI in retail sector gas advantages for Indian economy because: A. Fdi in retail sector is beneficial for farmers as it eliminate the role of middlemen who earn huge amount of commission from both sides i.e. farmers and retailers. B. Increase the employment opportunities. C. Infrastructure will be developed which reduces the wastage. D. Enhance the GDP of our country.
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Evagreen said: (Sat, Nov 30, 2013 11:52:59 PM)

Hi friends, If we see the Indian economic conditions since independence, we can clearly say that India is not self-sufficient. Measures like FDI will open opportunity for business, jobs, with this technology will come, competitions will be there, which we need for our development. Again, in FDI policies, there are reservation for controlling the foreign companies, they will deal with our indigenous small/ big producers for their intake.
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Manju said: (Fri, Nov 29, 2013 09:04:11 PM)

Hi friends, I think every thing in the world is having good impact and bad impact also. Its depend on us how we are using it, overdose of everything is harmful. In the case of FDI also. If government control the access of FDI in Indian market, we can get all the positive result as earlier discussed like we can get better employment opportunity. Instead going abroad we can get better job in India itself. We can better technology. Variety of products at low cost.
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Ami said: (Fri, Nov 29, 2013 02:44:16 PM)

Hi friends good morning to all of you. I would like to say that due to FDI absolutely our economy is increased but as we have not proper plan to storage the grain and vegetable. But if we developed these technologies ourself then more no of employees and our economy is increased. For example in India no one manufacturing company is established in electronic field from which we have to export these devices and our economy is decreased. So at last I want to conclude that these are developed ourself not for other countries. Only we should take a idea from those country where fdi is established.
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Pradeep Singh said: (Tue, Nov 26, 2013 09:12:33 PM)

I really appreciate the FDI. As FDI is good for Indian economy because India being the country of rich economical resources but due to lack of technique and sources it is not able to utilize all those for the well being of Indian economy, so FDI will boost Indian market policy, many unemployed get evolved, Indian high rating goods improved with better quality, especially farmer will be benefited who are generally exploited. So overall it has rousing effect on the country.
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Pradeep Isukapati said: (Tue, Nov 26, 2013 11:37:45 AM)

Hi every one, I have read comments given by many and I am sure some are not having proper understanding on FDI. First of all I would like to bring some facts in Indian Scenario. 1). We are not having proper storage facilities to store the produce. 2). No proper logistics support. 3). More than 30 percent of perishables and 20 percent of food grains are wasted due to improper logistics and storage facilities. 4). Means for every 100 Kg produces 30 Kg are useless and thrown away. 5). Farmers are not getting good price for their yield and no guarantee of purchase. 6). Irregular prices because of no proper planning and execution. 7). 1/3 rd of product price only reached to farmer hand due to presence of many hands in between. With FDI there is solution to all. I ll explain how it is possible. 1). First of all infrastructure will be developed which reduces the wastage. 2). Farmer will get good price as middle men will be eliminated. 3). Some are saying middle men will loose their livelihood. But there is a option that companies can employ these middle men as procurement officers in which they are well expertized. 4). Quality of the product will increase due to specific quality standards the companies are maintaining. 5). Some stated that small retailers will be effected. No, it is very minimal. The foreign companies who ever having retail chains maximum are B2B, means a kind of wholesalers and can't be located in every place. There are some criteria to open a store which is not possible in all locations. Small retailers can purchase at more cheaper here and can do their business. 6). Some stated that these companies are paying less to farmers and selling at more prices and earning profits and taking money back to their countries. Remember you will get products more cheaper here than any other place. Their secret of this low prices is they do their business based on volume. For example if I want to purchase 1 cricket bat costing Rs. 1000 shopkeeper sell to me at hardly Rs. 950 keeping its original cost in mind. But if I purchase 100 bats then? automatically price comes down due to volume and my transportation cost is also shared to each and becomes minimal. This is how WALMART is saying EVERY DAY LOW PRICE. 7). Some stated that why we are not encouraging our Indian MNC, s in retail and running towards foreign companies. This is a competitive world and if we are not allowing others to do business why they will allow us then? and Indian economy will become stagnant if other players are not there. The way the global companies do business is not easy for all. We all know Mc' Donalds. It is operating in India since 1996. To open a store it has done six years of research in India and developed an excellent supply & value chain which made it top. If possible I suggest all once to check out the way of Mc'D procurement. All the major Indiam MNC's know how Mc'D is doing such good and then also why they unable to implement such kind. 8). These foreign companies are major source of Income as tax payers. 9). If our Indian companies are moving outside India and doing bussiness globally, Why can't foreign companies do business in India. 10). Some said that they employ highly skilled. No, first they employ and they train them. They employ people from surrounding localities and train them accordingly. 11). Huge employment opportunities will be created.

12). Indian economy will raise. 13). Customer will have wide range of choice for a product. 14). Due to competition companies try to provide products at low cost and more quality to customer by improving their supply and value chain. 15). Farmer will have ensured buyers and farmer becomes a suppliers. Due to more players the bargaining power of supplier increases and farmer can demand his price. 16). For small farmers the assurance will come in the form of Contract farming and vertical integration. In all the way FDI is more beneficial than harmful. But, only thing is Indian Government should be strict with some stringent rules and regulations which makes foreign companies to be under Indian ethics and prevent monopoly.
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Mr Batth said: (Tue, Nov 26, 2013 12:07:39 AM)

Good morning to all. As per our country economy is concern we are facing three threat right now. 1). Inflation which just crossed double digit mark (nov 10.12 as per gov survey). 2). Rupee depreciation which reached historical low @68.18 in august write now near about 62. 3). Current account deficit which gov trying to maintain at 4.5 mark. This is directly or indirectly related to FDI. As our country is lower developing country which mean we don't have funds (gov) to do all the expenditure on infrastructure development like bridges, gov school, food security bill etc technology advancement (except pharmaceutical, ISRO) , Walmart and many more. So by FDI or fii (liquid money) both bring money to our country which utilize by our gov to meet current account deficit like paying of import diesel and petrol bill and meet the expenditure of various gov program like MGNEREGA. So I m not in the favour of FDI but if it is meeting our demand for time being we should favour FDI even gov done that in past (100% FDI in telecom, FDI in defence increased to 50 % etc) to bring back the economy growth which is below 5% and stop rupee depreciation which is the need of the hour for our country right now until we reached the situation when we don't have to rely on this investment (FDI specially fii) to do our expenditure. So FDI is neither good nor bad but it is situation or economy condition of the country decide this. Thank you.
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Remya said: (Mon, Nov 25, 2013 03:46:44 PM)

FDI is some extent good to India and the people who believe it will eradicate intermediaries are not at all possible. If FDI comes the huge enterprises will come into picture and they won, t meet farmers directly to get the products, so that they need intermediaries to take care of that. The result will be fast growing intermediaries and the farmers will come into trouble again. So if the government would likely to start FDI, they should for see the consequences and want to take powerful measures to vanish the intermediaries. The FDI will create job opportunities for us and moreover we will get quality products at cheaper price. But after complete eradication of small retailers, the huge enterprises will increase their prices in the future. So it is good to the near future and will affect the economy very badly in the coming decade.
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Anish said: (Sun, Nov 24, 2013 09:55:46 PM)

In my opinion FDI in retail sector has advantages for Indian economy. If Foreign companies invest in India, our economy will boost. This will lead to more investment. Job opportunity arises. Gradually people livelihood will improve. Although India is a service sector, FDI investment may increase an opportunity for India to focus also in manufacturing sectors. This will makes India, a stiff competition for China and other developing/developed countries. Indian companies has to compete with foreign companies to sustain in the market which pushes Indian companies to focus more on quality of the product. This may increases our export of goods. As our Rupee falls to around 62.72 (23 Nov 2013) against dollar, it may reach 70+ in a few months if foreign companies shows unwillingness to invest in Indian market. This may leads to price rise of all products. To avoid

that Government has taking steps to improve the flow of dollars in a market by relaxing the rules for foreign companies to invest in Indian market. According to E&Y survey, India surpasses China and US as most attractive investment destination. Undoubtedly, India will find a place to become one of the world leaders if it make a good policies for long run.
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Shubhash Sharma said: (Sun, Nov 24, 2013 08:26:37 PM)

Hello friends, Foreign direct investment are somewhat good as well as bad for retail sector. As every coin has two faces and hence foreign investment in retail has its advantages and disadvantages as well. (1). As most of us are quite familiar with the names of existing retail store i.e. Big bazaar found that are the goods are available in under one roof and time to time they announce some discount offers, or combo offers to attract consumers. We get quality products from these stores. (2). And any case of inferiority or malpractices of product can spoil the image of brand in the market and thus chance of inferior goods are very few. (3). On the other hand FDI also help in generating employment in country. (4). FDI in retail sector is beneficial for farmers as these bi retail stores directly buy goods from farmers which eliminate the involvement of middlemen who earn a huge amount of commission till now from both the sides. (Farmers and retailers). (5). FDI is also brings investment in our economy which is need of the hour. (6). FDI is not harmful for small retailers because despite of there attractive schemes they did not provide goods on credit which small or medium size retail stores do especially to regular customers. (7). It is not possible to set up these retail stores in rural area because of lack of demand and lack of infrastructure facilities.
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Prashant Pandey said: (Sat, Nov 23, 2013 01:02:42 PM)

Foreign direct investment is the investment by the foreign companies in creating our infrastructure like airports, ports, etc. This can also be in specific areas like healthcare, retail, hotels, etc. The foreign established companies will also open their stores in India. FDI has many benefits. 1. Huge investment in retail sector will make great employment opportunities. 2. At Least 10 million jobs will be created in next 3 years. 3. FDI will help farmers secure remunerative prices by eliminating middlemen who exploit farmers. 4. More efficiency in supply chains.

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Kannappan said: (Fri, Nov 22, 2013 12:35:24 AM)

Hello Everyone. Foreign Direct Investment affects retail traders, farmers and consumers in heavy time. The huge some of money which is being floated into this industry will not be withstand by the small time retail traders in this industry. So by which this small time retail traders will be vanished. So farmers have to sell their products only to these people, where the MNC will have upper hand. Farmers won't get the money as it would have been. And at last consumers, India is country where every section of people lives. In most of the cases, these small time traders are the lenders to the deprived sections. So if we are about to vanish that, we are going to affect the livelihood of each and every person of this country. I accept the fact that the middle men benefits a lot in present system, but instead of streamlining how could we collapse the system? It is duty of the government to provide with storage facilities, this is act of escapism which the government possess in form of FDI.
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