Owing to you 2nd disadvantage Mr. Manish Kumar, I would quote down that despite being all the buffed up advantages of FDI’s implementation.. this little disadvantage will cause a huge and considerable amount of capital drain; which is not at all admissible.
If the foreign companies are going to take major chunk of profit to their own then what would we obtain?
Recession..?
Inflation..?
Scarcity..?
Price hikes..?
Whatever may happen, these are not at all desirable.
So, FDI should not be encouraged.
Retailing is an essential service in any large modern economy (or any economy that has hopes of being modern). Organised retail is a necessity only for developed economies because it is the bridge between the production of a large number of goods and a large number of people with specific preferences and varied choices. For poor underdeveloped economies, informal retail suffices given that very few goods are produced and people have little choice.
Organised retail is a good thing in any sufficiently large economy. It increases distribution efficiency, and increases production through increased efficiency in resource allocation. In the absence of organised retail, a good deal of labour is involved in low productivity retailing of small amounts of goods.
Organised retail requires investment, in terms of capital and human resources. This is an obvious fact but is often overlooked. Even if desired, organised retail will not happen if required human resources are missing.
Foreign investment augments domestic investments and is good for the economy. If domestic investable resources fall short of what’s necessary, it is a good idea to attract foreign investment. One large poor economy (which we need not name) did very well over the last few decades by attracting hundreds of billions of dollars in foreign investment.
India needs an efficient retail sector — again an obvious fact that is overlooked by some, perhaps because it is not in their interest to recognise this fact.
India’s domestic resources are insufficient for creating an efficient retail sector.
Therefore inflow of foreign investments in retail is good for India.
at a time fdi is our need bt it shld nt allowed in retail sector bcos aftr 2yr they will not purchase our goods like crops,veg n they only bought so dat our gdp will fallen n dollar will nt saved in our country bcos every tme india will depend only foreign countries..
manish kumar
As we know that the Quoin have two side the same thing is also there FDI have there own advantage and disadvantage.
First I want to focus on Advantages of FDI when its came to India:.
1. The consumers are got product on very cheaper price.
2. Quality of Product will be increases.
3. Consumer have lot of choice on very low cost.
4. Our supply chain will increases because farmer direct sell there product to the whole sell there is no intimidatory in between.
5. Wastage of goods can be reduced.
6. India Technology will be increase.
7. Demand of real estate will increase because they need to big space and whole sell store.
8. FDI promise that they buy 50% of product from the India.
9. FDI said they provide 10 million jobs in next 3 year.
10. India revenue will increase.
Disadvantage of FDI:
1. It is direct effect to the small retailer. There demand will decrease.
2. They take money India to there own country.
I hope freshers will be get soon job. It’s good for mall, bad for small outlate.
Siddhant Tripathi
Owing to you 2nd disadvantage Mr. Manish Kumar, I would quote down that despite being all the buffed up advantages of FDI’s implementation.. this little disadvantage will cause a huge and considerable amount of capital drain; which is not at all admissible.
If the foreign companies are going to take major chunk of profit to their own then what would we obtain?
Recession..?
Inflation..?
Scarcity..?
Price hikes..?
Whatever may happen, these are not at all desirable.
So, FDI should not be encouraged.
Retailing is an essential service in any large modern economy (or any economy that has hopes of being modern). Organised retail is a necessity only for developed economies because it is the bridge between the production of a large number of goods and a large number of people with specific preferences and varied choices. For poor underdeveloped economies, informal retail suffices given that very few goods are produced and people have little choice.
Organised retail is a good thing in any sufficiently large economy. It increases distribution efficiency, and increases production through increased efficiency in resource allocation. In the absence of organised retail, a good deal of labour is involved in low productivity retailing of small amounts of goods.
Organised retail requires investment, in terms of capital and human resources. This is an obvious fact but is often overlooked. Even if desired, organised retail will not happen if required human resources are missing.
Foreign investment augments domestic investments and is good for the economy. If domestic investable resources fall short of what’s necessary, it is a good idea to attract foreign investment. One large poor economy (which we need not name) did very well over the last few decades by attracting hundreds of billions of dollars in foreign investment.
India needs an efficient retail sector — again an obvious fact that is overlooked by some, perhaps because it is not in their interest to recognise this fact.
India’s domestic resources are insufficient for creating an efficient retail sector.
Therefore inflow of foreign investments in retail is good for India.
nisha10rana@gmail.com
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.
kaushal agarwal
at a time fdi is our need bt it shld nt allowed in retail sector bcos aftr 2yr they will not purchase our goods like crops,veg n they only bought so dat our gdp will fallen n dollar will nt saved in our country bcos every tme india will depend only foreign countries..