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FDI in India Advantages and Disadvantages

Updated on September 20, 2012
FDI in India
FDI in India

Overview

First of all, FDI means Foreign Direct Investment which is mainly dealings with monetary matters and using this way they acquires standalone position in the Indian economy. Their policy is very simple to remove rivals. In beginning days they sell products at low price so other competitor shut down in few months. And then companies like Wall-Mart will increase prices than actual product price.

They are focusing on national and international economic concerns. There are four main working pillars of FDI. They are financial collaborations, technical collaborations and joint ventures, capital markets via Euro issues, and private placements or preferential allotments.

There are two types of FDI, one is inward FDI and second is outward FDI. Ongoing news suggests that largest retailer Wal-Mart has demanded for 51% of international dealings in FDI in Indian markets which had called nationwide strike. From positive and negative aspects FDI has its own advantages and disadvantages.

Advantages

  • Increase economic growth by dealing with different international products
  • 1 million (10 lakh) employment will create in three years - UPA Government
  • Billion dollars will be invested in Indian market
  • Spread import and export business in different countries
  • Agriculture related people will get good price of their goods

Disadvantages

  • Will affect 50 million merchants in India
  • Profit distribution, investment ratios are not fixed
  • An economically backward class person suffers from price raise
  • Retailer faces loss in business
  • Market places are situated too far which increases traveling expenses
  • Workers safety and policies are not mentioned clearly
  • Inflation may be increased
  • Again India become slaves because of FDI in retail sector

Video: Impact on India by Moneycontrol

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      josphin 5 years ago

      nice one

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      sharmila 5 years ago

      wow! nice explanation. thanks

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      Gayasuddin 4 years ago

      i am in favour of FDI because in india it provides 1croce per three years employment,and inflation decreases also.Plz support FDI all Indian

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      nasir 4 years ago

      govt. allowed fdi in retail sector

      but they also focus on the other aspect

      like disadvantages.no doubt fdi will creates million of jobs but it also affect to many life, i.e. sabhjewala ...

      than who is responsible for that?

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      sacbeetal 4 years ago

      Instead of allowing foreigner enter retail market government should make Indian merchant efficient by traning them

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      prateek 4 years ago

      kya guarantee hai ki kishan ko sahi rate milaga and india ka paisa profit ka tor par bhar chala jayega

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      anil 4 years ago

      only gray market product sold too much not india

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      parveen kumar 4 years ago

      i am not in favor of FDI, may be in starting it will create employment for country people but it has more disadvantages then advantage and i don't have any hesitation to say that it will be more harmful to our Indian who are working at very small level or labor. Because in India the rate of poor people is higher then rich and they can't afford the thing from these mega mart...at the end i would like to say that it's not good for our county and country people...

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      Brijmohan sharma Bemetara Chhatishgarh 4 years ago

      Policy of FDI are unexplained and hidden, figures given by Govt.are hypothetical regarding creation of job opportunity. Now a day political party of india are making policy for their party not for the country So I am not in favour of FDI

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      Sharad Chandra Agarwal 4 years ago

      The biggest advantage of FDI in retail sector that there would be initial flow of money to India & they (means MNC retailer ) would bring latest technology in storage , transportation & food processing segment . There would be overall improvement .

      But major disadvantage is that imbalance between import & export would increase . The India would suffer in the same manner when East India Company started business in our country . Initially everyone welcomed , but later on they overpowered whole country . Instead of the FDI we must improve our own companies so that they become global leaders . Reduce ED & all kind of taxes , reduce power tariff to enable Indian companies to outsmart China. To make India a Global hub , give incentive to R&D . Reduce government expenditure .

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      ilogin 4 years ago from India

      You don't know......Unemployed ratio will increase 3x more than employment ratio.

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      jaydip 4 years ago

      i m also in favor of fdi

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      RAVI 4 years ago

      I am suported to fdi

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      wilson paul 4 years ago

      I think govt is concerned only about country GDP...If the govt want to go ahead despite of many harm bells...then it must assure what steps it is going to take for the sake of victims of FDI.

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      4 years ago

      Before passing an bill Govt. should explain clearly to the citizens of this country the benefits or the limitations of FDI with out which it is like they are the dictators ruling our country and think that they are not aware that our country is democratically elected one.

      Also lot of people consider that both hike in diesel and gas plus this FDI in retail why govt has to bring it all of an sudden, its all bcoz they want the shift the peoples mind set from the scams like coal block and other scams so that people will forget it

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      ISHANT KUMAR 4 years ago

      FDI WILL JUST LIKE EAST INDIA COMPANY WHICH CAME INDIA AND LOOTED IT.

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      Anilkumar G 4 years ago

      I am against to FDI, at starting it will "makeup'(i.e,providing goods & services at low cost) and "attract us' but later it will destroy us

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      Archit Singh 4 years ago

      I think through FDI India will get more rapid development...... I am in favour of it.

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      maheboob khan 4 years ago

      fdi in retail sector affect the indian retailors and they can not compete with foriegners

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      shivaprasad hanji 4 years ago

      fdi is favor for rich people not for middle and poor people i appose fdi ,govt should know the conditions of all people before taking such kind of decisions

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      sani 4 years ago

      i am in favour of it . it will better for india .it will help us to developed as a devloped country. we will get different technologies and many things

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      mohnish srivastava 4 years ago

      mai FDI ke against nahi hu but agar other country ki baat kare to waha ke public ki income bahut jyada hai jo ki wo apne country me acche se survive kar sakte hai but india is agricultural country hai aur yahan par farmer jyada hai aur logo ki salary bhi bahut less , they can't survive if FDI comes

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      sandesh s s 4 years ago

      am not favor of it, it will be create the unemployment in india

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      pradeep 4 years ago

      Just like brain drain...Its Money Drain if we allow FDI.we will lose our money and also existence.Again we will be Slave.Its an indication of returning to our past i.e. ruled by others just like by British before

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      BSS 4 years ago

      Watchout the movie Zetigeist. Read about the phenomenon "Economic Hitman" as a measure to control Host Country's(India) power by West. You all in favour of FDI will get the answer!!

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      isha dhiman 4 years ago

      i m also not in the favour of fdi..... it is a punish 2 indians retailers... it is our country how we permitt to other to do bussiness in our country... no never..... stop it....

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      suman mukherjee 4 years ago

      india is now inviting foreign rulers and going to lose its sovereignty again by implementing FDI. it's a complete betray to the common people of india.

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      Milind 4 years ago

      It is increasing Govt. Revenue.

      Because The goods bring from foreign and that goods charge custom duty. It is a revenue of Our Nation And that is more help in our economy.

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      Akash 4 years ago

      I'm also against FDI, as it will just create the burden on 50 million indian peoples.

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      veera 4 years ago

      only fdi invest here........ how to indians invest the market... who support fdi ........all r depends by foreign investments. finally our products our income will be loss....

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      arjun 4 years ago

      i am also against fdi.........

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      Seema 4 years ago

      Nice Explanation..Thanks

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      dHIMAN 4 years ago

      Not only frustrating, but useless. Very little offered for or against as points.

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      sajib dhar 4 years ago

      im also againist of fdi............i

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      sunil behki 4 years ago

      I still remember the hue & cry when computers came in India, Several politicians were against...........Now every second person is appreciating that.........Same will happen with FDI........time will tell

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      Pradeep Phule 4 years ago

      I am not in favour at all the question is simple why govt is not supporting to our own companies so that they become global leaders . Reduce ED & all kind of taxes , reduce power tariff to enable Indian companies to outsmart China. To make India a Global hub , give incentive to R&D .

      Well this is like temporary solution from market condition and govt want to be hero to solve current problem but it is not actually , so govt should think globally at least now when condition is so bad , don't just run govt but be responsible to it .

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      Raj Kumar Mukherjee 4 years ago

      Mind it when the FDI will come in retail market it will not only effect the retail business class but also the common people. Let the place "A" in our country is the best producer of potato and the farmer is selling the potato at Rs. 6/= per Kg now and that we are buying from the market at Rs. 15/= per Kg. FDI will buy that potato from the farmer at Rs. 8/= so the farmer will happy to get Rs. 2/= extra in per Kg. But the FDI has the capability to sell that potato at Brazil, not in India. So the farmers who did not sold the potato to FDI will sell that one at Rs. 10/= and that we will have to buy it bu paying Rs. 20/=, by this way the price index will go up. So if we allow FDI in retail we will have to look after this point also.

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      Ruban 4 years ago

      I am also against FDI. Because,it should affect the retailers and small indermi..........................

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      shivanand 4 years ago

      I am not in favour of FDI because it creates 1 million jobs but kills the 50 millon merchants

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      preeti dubey 4 years ago

      fdi is like shadi ka laddoo. it will create employment & unemployent together.

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      ajay kumar 4 years ago

      bilkul bekar hai fdi

      it will destroy indian industry. Unemployment will be increased.

      example is china which destroyed indian home industry.

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      a k gupta 4 years ago

      WHY GOVT. DOES NOT START FDI IN POLITICS ? GOVT. CAN GET BETTER LEADERS THAT THESE WHITE ELEPHANTS. WHY GOVT. IS DESTROYING INDIA AND ITS PEOPLE. WHAT WILL BE OF THE PEOPLE WHO WILL LOST THEIR JOB WHEN INDIAN INDUSTRIES WILL CLOSE ?

      SHAME ON INDIAN LEADERS

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      ROHIT RANA 4 years ago

      FDI is very good thing for indain market as this is an attempt to make india in the list of developed nation but right now its not worth if it is done it will be just a safe game played by government by temporary making good market so that they become hero and win again in next upcomming election.FOR FDI firstly indain government should make they country people ready to face its demerits no doubt fdi will come in indain market but right now we indain people are not ready

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      prajakta 4 years ago

      i thnk its tru FDI will raise our GDP or stocks bt wat about the majority people in india? the day indian govt welcomed walmart the same day US thrown out same walmart..Why so inspite US is an advanced country?its jst coz FDI means selling out nation...... it has led 78% affect to people in thailand & 2morrow same gonna b state of INDIA...

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      AYUSH CHOUREY 4 years ago

      The foreign direct investment is profitable both to the country receiving investment (foreign capital and funds) and the investor. For the investor company FDI offers an exclusive opportunity to enter into the international or global business, new markets and marketing channels, elusive access to new technology and expertise, expansion of company with new or more products or services, and cheaper production facilities.

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      lalitha 4 years ago

      Formalities and conditions are safe then we accept fdi to our country...If fdi is allowed only 3 years or minimum of year then we know what are the diffficulties and what are the improvement in our nation...This type of safe conditions only at least we take for if fdi came our country..

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      vikas suryavanshi 4 years ago

      As an ecnomist and prime minister of our country, he says fdi in retail should come in our country, it will help our farmers and there will be direct contact between farmers and shops, so they will get good benefit and their standard of living will increase, infrastructure and growth of our country will increase, and lakhs of people will get employment, there may be sum disadvantages, we should cope up with that, i support to upa government

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      saleem gous 4 years ago

      i am also against bc'z there is no profit

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      priya 4 years ago

      i m totally against fdi bcoz it has destroyed indian market,it brings a lot of loss to farmers and merchants...govt should take some steps 2 eradicate fdi from india!

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      kk 4 years ago

      1 million people get employment but at same time 50 million merchants will affect there is no doubt that we will become slaves i against of fdi

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      aloktapikar@gmail.com 4 years ago

      F.D.I. is a only idea given by our Hon'ble Prime Minister if it will come in India than I am sure employement problem will be solved and consumer will be benifited but if this policy is not accepted by the rural areas than adverse effect will come and India will be the sufferer of all the losses.

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      riyaz mk 4 years ago

      the big retail giant will not open their stores in all over the country. they will be selective while choosing the cities. and it is good for other small retailers since they will get quality goods from such giants at a cheaper price. And for the customers it is obvious that the decision is helpful

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      Thomas Panicker 4 years ago

      The decision to welcome 51% more investment is for the people and for the country.? When more investment comes, more big shops will come, the farmers get more opportunities, more prices, the damage to goods will be minimum, attract more prices, boost agriculture, 1000s more will get job, People will get good things in cheaper prices, people will enjoy shopping, price will be competitive, More investment means more financial pumping into our economy. Financial cycle/activities will increase, more people will come to that economical chain and more taxes to govt. to utilize for more welfare activities for the people. More more big buildings to construct, in such way more financial and job opportunities to people. Some more 1000s will come out of poverty. More nice good international products also will be available to our 600 million or more affordable, better product seeking, middle class population whom are able and capable to buy better and more products. To cater to the demand of the increasing affordable population is a govt. duty. Though 27% of our population is below poverty line, we have one of the biggest concentration of better opportunities seeking, affordable millions who want and who seek these types of world standard shopping malls and experience also. Up to the end of the world, we are not expected to live by the small Bakkala only.

      Now these 51% investment is allowed only for major cities, cities which have 10 lakhs or more population. Each state govts., has to take their own decisions. Central Govt. is not forcing anybody. If people appreciate, like, find it better and patronize only these Malls can survive. If people find it costlier and bad, they will desert it and they will close and go. Govt. cannot force our people to go and buy from these malls, India is not dictator country to do that like China. China you have to accept all govt. decisions blindly without protest and should think and believe that all govt. decisions are for the good of the people. India this cannot happen.

      Lulu Hyper has 100 shops in different countries. If they stop foreign investment in other countries what may happen.? China progressed by allowing 100% investment in almost all and especially retail. All international retail brands are in China. CPIM never opposed or criticized Chinese policy of allowing 100% foreign investment in retail. Hence, the decision is for the people of India.

      Moreover cross country business is the norm of the day. Bilaterally allow only investment can go and come. When all countries develop with liberalization and cross country business, we cannot only close our doors and progress.

      When Aluminum, steel utensils came, (fear of loss of job for Velanmar, Kumars) when new modern textiles came, (fear of loss of job for hand weavers) when color tv came, when computer came (fear of loss of job) when modern equipment and Tractors came to agriculture (fear of loss of job for farm workers) such types of resistance happened in our country due to ignorance and bad politics. The same CPIM, who opposed all that time regret now.

      China, and almost all countries , Gulf Countries, Egypt all other world countries allow our Lulu, and other big brands. In Africa our people are the big Traders.

      No small scale traders will be affected, Even if affected they will find new opportunities also. Over all it will be good for the nation.

      No country in the world perished due to 51% foreign investment in retails business. No history.. New job opportunities will emerge and people will readjust. Oppose blindly everything is not good... The opposing people are the same who opposed all good things the govt. did in the past, all foreign investments earlier also. When 2-3 % oppose, 90 % are welcoming these hyper markets.

      Our stock market also appreciated and welcomed the news of this investments. Market boosted on hearing this good news.

      The people behind this decision are more patriotic, intelligent and experienced than us. They took this decision after much discussions and thinking.

      Regards

      THOMAS PANICKER

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      pankajtiwari 4 years ago

      i am in favour of it . it will better for india .it will help us to developed as a devloped country. we will get different technologies and many things

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      rakesh 4 years ago

      Thank you to all, i am agree with all.

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      priyank 4 years ago

      fdi ko aanna chaiye ni to hamare desh bik jayega karje main dubba hua hai desh agar fdi ni aayi to ek din aisa hoga hamari currency he sold hojayegi

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      priyanshu 4 years ago

      i think fdi shud nt cum coz it the local shopkeepers will nt be able earn their living ya i know fdi will increase the employment but how much thts the main point...

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      dharmender yadav 4 years ago

      i am also fever in fdi ....it should be not eliminate in india..because new ideas,technology,and employement comes in india by fdi. export and import increased others countries.

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      kavitha 4 years ago

      fdi is very useful for our country, because india is a developing coutry, so our economic growth is very essential .. fdi make a new job. and formers are benefit more level.. they are getting a true price for our product.. and fdi not more affect retailers. 10 lakh people living the cities saids only allowed the fdi ..

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      siddharth 4 years ago

      I am 12 years old and I want that FDI should be activate in our India

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      d3 4 years ago

      u ppl just analysis if fdi comes , wall mart take place in india then every 17 employees loos thr job comparing to us employees

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      SWEETY 4 years ago

      I am against FDI

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      RaHuL 4 years ago

      Today's india need this. if FDI not comes in india then sure one day our economy & market get collapsd.

      So, I want FdI.

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      GOUTAM 4 years ago

      BEFORE INVITING FDI,GOVT SHOULD SURVEY THE RETAIL MARKETS, IMPACTS OF FDI ON FARMERS,ON EXISTING RETAILERS,ON UNEMPLOYMENT SECTORS,ON ECONOMICAL GROWTH, SHORT TERM AND LONG TERM EFFECT ON SOCIO-ECONOMIC CONDITION. EVERY THING DEMANDS COUNTRYWIDE DEBATE. INDIAN COMMON PEOPLE DO NOT KNOW ABOUT FDI WHETHER IT IS HAIR OIL OR PAJAMA.GOVT. IGNORES THE THINKING OF THE COMMON PEOPLE AND THEIR BETTERMENT STRIGHTWAY,BUT FDI WILL SPREAD THEIR BUSINESS BY SUCKING THEIR BLOOD.POLITICIANS KNOW IT VERRY WELL,THEY NEVER DONATE BLOOD,THEY THINK THAT THEY HAVE ONLY SOME LITS OF BLOOD FOR THEIR OWN, BUT VOTERS HAVE CRORE LITS FOR MAKING THEIR MONEY, INDIAN GROWTH (JUGLLERY OF ECONOMIC DATA) COLOURFUL SCAMS.FDI (FOREIGN CURRENCY) MAKES THE POLITICIANS HAPPY WITH HEALTHY SWISS BANK A/C . ACTUALLY FDI MEANS FINAL ( COUNTDOWN) FOR DESTROYING INDIA.

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      Manjunatha.c 4 years ago

      I hate the fdi because foreign companies enter in our market and produce foreign goods and destroyed our product and earn profit,and that profit started another branch then continue foreign business and totally destroyed our culture also; please i request don't help to FDI.

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      IMAMUL HAQUE 4 years ago

      Good explanation THANKS

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      MEHAK MEHTA 4 years ago

      I AM IN FAVOUR OF FDI .FDI AANA CHAIYE INDIA MEIN TABHI TO INDIA KE RETAILERS COMPETE KARENGE FOREINERS SE.OTHERWISE KUE KE MANDAK BANE RAHO

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      kvrao 4 years ago

      The bottom line is: to create employment for 1 million the government inclined to make 50 million traders to lose sleep.

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      TASLIM 4 years ago

      I agree with FDI..introduces innovation across an industry, tourism devpmt, upgrading in agriculture ,growth in market size,, small retailers wil not be crowded out, but would strengthen market positions by turning innovative/contemporary,,farmers wil get another window of direct marketing and hence get better remuneration...

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      zaman mukul 4 years ago

      how fdi help common men?

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      SACHN MISAL 4 years ago

      i am not sure about fdi iske pehle bhi bohot kuch india mein aya hai , lokpal bill accept karo uske bad.......................

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      pankaj kumar saini 4 years ago

      nice explanation.india is happy in self sufficiency. i think it must not concern on international affairs

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      AMAN 4 years ago

      I AM ALSO AGAINST FDI IN INDIA

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      sree 4 years ago

      use full for presenting seminar,debatetc.......

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      lovely nikunj bhuva 4 years ago

      intermidiaris are put to lose...

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      sunil 4 years ago

      if there is a lot of FDI into one industry eg. the automative industry,than

      a country can become too dependent on it and it may into a risk.....

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      dev brath gautam 4 years ago

      FDI GOIN 2 BE PLAY A GR8 ROLE TO TAKE THE RELL TASTE OF DEVELOPMENT...!

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      sagar 4 years ago

      I am suported to fdi

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      vijayraj 4 years ago

      it not not nessesary to india and indian market.............

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      Barun kumar 4 years ago

      what is the guarantee to get a perfect retail market from FDI?????

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      vishal N harry 4 years ago

      Advantages

      • Increase economic growth by dealing with different international products

      • 1 million (10 lakh) employment will create in three years - UPA Government

      • Billion dollars will be invested in Indian market

      • Spread import and export business in different countries

      • Agriculture related people will get good price of their goods

      Disadvantages

      • Will affect 50 million merchants in India

      • Profit distribution, investment ratios are not fixed

      • An economically backward class person suffers from price raise

      • Retailer faces loss in business

      • Market places are situated too far which increases traveling expenses

      • Workers safety and policies are not mentioned clearly

      • Inflation may be increased

      • Again India become slaves because of FDI in retail sector

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      priya 4 years ago

      i dn't noe wat 2 say :/

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      TANAI 4 years ago

      i am not in favour of FDI because now INDIAN economy may improve due to intake of FDI but in future what will happens who knows so first we have to analyse future happenings then we have to take decision about FDI

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      Arun Shandil 4 years ago

      Fdi system will directly attack on indian farmer,retailors and poor pepole . So i m disagree with fdi .If FDI comes in india it will creat the same situtations like East India Compnay. Our govt. will be responsible for it .

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      ROHIT SHARMA 4 years ago

      FDI KA FAYDA BHI HAI OR NUKSHAN BHI BECAUSE CRORO DOLLER INDIAN MARKET MAI INVEST HOGA . IMPLOYMANT MAI INCREASE HOGA. BUT ITS NO VERY GOOD RESULT FOR OUR COUNTRY. BECAUSE INDIAN ECONOMY IS A AGRICULTURAL

      ECONOMY. HERE 70 % FORMERS IN INDIA.

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      sudhakar (PU)MBA 4 years ago

      i m also not in the favour of fdi..... it is a punish 2 indians retailers... it is our country how we permitt to other to do bussiness in our country... no never..... stop it....

      SUDHAKAR FROM PALAMURU UNIVERSITY

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      aditya narayan tiwari 4 years ago

      thnx ur commentz helped in my debate ................. :)

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      sarthak 4 years ago

      its completely reckless

      before any decission govt. should thing of roadside shop keepers

      i m against it

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      Chahat... 4 years ago

      I m in favour of FDI.....It can help our country to develop in each & every field.

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      BIBUNA MATHEW 4 years ago

      I AM ALSO AGAINST OF THIS FDI IN INDIA BECAUSE THE DISADVANTAGE IS MORE THAN THE ADVANTAGES. ECONOMICALLY BACKWARD PEOPLE SUFFERS A LOT, EXCEPT THIS THERE are MANY WAYS FOR THE DEVELOPMENT OF OUR COUNTRY

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      bharat 4 years ago

      I am against of this FDI in india ...........

      aam admi ka jina haram kar dega ye FDI

      govt. keval apna fayda dekh rahi hai janta ka nahi

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      pratyusha 4 years ago

      i m against fdi bcoz it will make 30 crore people unemployed directly or indirectly......

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      akshay 4 years ago

      FDI will develop india , like other countries ... those who are against of it now soon they wl see india to have international level of technology , un-corrupt product , no milawat , genuine price .

      small and medium retail can live with large retail. I don’t see people abandoning their local shops and drive 15-20 miles to a large retail outlet unless he is getting some real benefit out of that

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      vedprasad mishra 4 years ago

      only the time is differs, it will repeat the history when jahangir allowed british east india company and now the govt. doing so to fdi.

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      krish 4 years ago

      i don't know why some guys are supporting fdi.it has serious impact on our indian economy and also employment.supporting fdi is indirectly giving complete command over our economy to a foreign country.

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      AMK 4 years ago

      The UPA govt is not looking at 50million famillies, they are looking at 1million jobs. Govt has to think like a common man & act, i think they got birth in india to loot india......strsnge but true.

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      lakshmi 4 years ago

      i am also against to fdi. it is not useful in a developing country like india.

      GOVERNMENT SHOULD TAKE INTO CONSIDERATION THE VIEWS OF GENERAL PUBLIC

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      www.anupria25@gmail.com 4 years ago

      due to dis act of govt india vil becom totally dependent on foreigners n never b able 2 becom a worldwid power itself.fdi vil surely enlarge n increase the gap btween rich n poor in our country.

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      Vivek Chaudhary 4 years ago

      Our govt. is going to sell us.

      I am very diappointed.

      Yesterday was a blackday for all indians.

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      Balli Lehal 4 years ago

      I am favor of FDI, because

      Increase economic growth by dealing with different international products. 1 million (10 lakh) employment will create in three years - UPA Government. Billion dollars will be invested in Indian market. Spread import and export business in different countries. Agriculture related people will get good price of their goods

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      Naina 4 years ago

      I'm fever in FDI ....Bcoz ye nhi rha to humara india age kaise aayega humesh piche hi rahega ....so FDI aana chahiye.

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      SWATI SWETALINA PRUSTY 4 years ago

      Many are of the opinion that untrammeled liberalisation ,as exemplified in the relaxation of FDI regulations,will cause a revival of EAST INDIA COMPANY,albeit in an American Avatar..They must remember that India in the 21st century is not what it was in 17th..

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      SARAT KUMAR 4 years ago

      FDI -the easiest way of transformation of black money of big companies ,corrupt politicians and others into white..

      REGARDS:

      SARAT KUMAR

      ODISHA

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      Vinod Verma 4 years ago

      I am also in the feavor of FDI... It will expand indian market, and also help full for farmer.... That's great support to FDI

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      sweet me 4 years ago

      hey!

      don't just think about an individual like farmer or more 10 lakh employments in next 3 years

      think for india as everyone's nation being slave under retail sector of fdi.

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      sudhir 4 years ago

      I am not in favour of FDI in India. It is a good as FDI will provide 10 million jobs in three year but why not govt is trying to create 10 million jobs in India itself. By allowing FDI, we will go back 250 years back as british had came to India. Again we beccome independent. Now our country is good economical conditions. So govt should plan to establish more and more new industries in all states, which automatically create more than 10 million jobs in India itself. My view we should not depend upon other to increase our economic.

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      cherry 4 years ago

      once again india had taken risk of FDI, just doing experiments and it gains nothing rather than a big loss

      as we all know there are both advantages and disadvantages of every thing that exists , why our UPA govt can't understand India's situation

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      pallavi saluja 4 years ago

      i am against the fdi ..!!i read this n realise that ..!!

      n nw m against the fdi..!!! as i think there are also mre votes for those persns who hd typed 4 disadvantages.......!!!!

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      hayasnc 4 years ago

      against fdi

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      Rajesh Baria 4 years ago

      It is very challenging and must needed decision to cop up development and competition in today situation.

      There is some advantage and disadvantage in FDI but it is the need of today to stand in international market and grow up and compete in international competition.

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      Kavya 4 years ago

      i m against fdi bcoz it will make 30 crore people unemployed directly or indirectly......

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      Thayyaba Sulthana 4 years ago

      i am also against fdi kyunki is se zyada disadvantages plz don't support it.

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      radhika rawat 4 years ago

      i think fdi is not good...bt atlest we shuld give them a chance....

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      karan 4 years ago

      Disadvantages

      Will affect 50 million merchants in India

      Profit distribution, investment ratios are not fixed

      An economically backward class person suffers from price raise

      Retailer faces loss in business

      Market places are situated too far which increases traveling expenses

      Workers safety and policies are not mentioned clearly

      Inflation may be increased

      Again India become slaves because of FDI in retail sector

      Major disadvantage: Money will not stay in India. It'll go to the home country of the foreign investor. With Indian retail chains, at least the money will stay in India.

      i am not in favor of FDI, may be in starting it will create employment for country people but it has more disadvantages then advantage and i don't have any hesitation to say that it will be more harmful to our Indian who are working at very small level or labor. Because in India the rate of poor people is higher then rich and they can't afford the thing from these mega mart...at the end i would like to say that it's not good for our county and country people...

      But major disadvantage is that imbalance between import & export would increase . The India would suffer in the same manner when East India Company started business in our country . Initially everyone welcomed , but later on they overpowered whole country . Instead of the FDI we must improve our own companies so that they become global leaders . Reduce ED & all kind of taxes , reduce power tariff to enable Indian companies to outsmart China. To make India a Global hub , give incentive to R&D . Reduce government expenditure .

      I am not in favour at all the question is simple why govt is not supporting to our own companies so that they become global leaders . Reduce ED & all kind of taxes , reduce power tariff to enable Indian companies to outsmart China. To make India a Global hub , give incentive to R&D .

      Well this is like temporary solution from market condition and govt want to be hero to solve current problem but it is not actually , so govt should think globally at least now when condition is so bad , don't just run govt but be responsible to it .

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      gnesh 4 years ago

      The decision to welcome 51% more investment is for the people and for the country.? When more investment comes, more big shops will come, the farmers get more opportunities, more prices, the damage to goods will be minimum, attract more prices, boost agriculture, 1000s more will get job, People will get good things in cheaper prices, people will enjoy shopping, price will be competitive, More investment means more financial pumping into our economy. Financial cycle/activities will increase, more people will come to that economical chain and more taxes to govt. to utilize for more welfare activities for the people. More more big buildings to construct, in such way more financial and job opportunities to people. Some more 1000s will come out of poverty. More nice good international products also will be available to our 600 million or more affordable, better product seeking, middle class population whom are able and capable to buy better and more products. To cater to the demand of the increasing affordable population is a govt. duty. Though 27% of our population is below poverty line, we have one of the biggest concentration of better opportunities seeking, affordable millions who want and who seek these types of world standard shopping malls and experience also. Up to the end of the world, we are not expected to live by the small Bakkala only.

      Now these 51% investment is allowed only for major cities, cities which have 10 lakhs or more population. Each state govts., has to take their own decisions. Central Govt. is not forcing anybody. If people appreciate, like, find it better and patronize only these Malls can survive. If people find it costlier and bad, they will desert it and they will close and go. Govt. cannot force our people to go and buy from these malls, India is not dictator country to do that like China. China you have to accept all govt. decisions blindly without protest and should think and believe that all govt. decisions are for the good of the people. India this cannot happen.

      Lulu Hyper has 100 shops in different countries. If they stop foreign investment in other countries what may happen.? China progressed by allowing 100% investment in almost all and especially retail. All international retail brands are in China. CPIM never opposed or criticized Chinese policy of allowing 100% foreign investment in retail. Hence, the decision is for the people of India.

      Moreover cross country business is the norm of the day. Bilaterally allow only investment can go and come. When all countries develop with liberalization and cross country business, we cannot only close our doors and progress.

      When Aluminum, steel utensils came, (fear of loss of job for Velanmar, Kumars) when new modern textiles came, (fear of loss of job for hand weavers) when color tv came, when computer came (fear of loss of job) when modern equipment and Tractors came to agriculture (fear of loss of job for farm workers) such types of resistance happened in our country due to ignorance and bad politics. The same CPIM, who opposed all that time regret now.

      China, and almost all countries , Gulf Countries, Egypt all other world countries allow our Lulu, and other big brands. In Africa our people are the big Traders.

      No small scale traders will be affected, Even if affected they will find new opportunities also. Over all it will be good for the nation.

      No country in the world perished due to 51% foreign investment in retails business. No history.. New job opportunities will emerge and people will readjust. Oppose blindly everything is not good... The opposing people are the same who opposed all good things the govt. did in the past, all foreign investments earlier also. When 2-3 % oppose, 90 % are welcoming these hyper markets.

      Our stock market also appreciated and welcomed the news of this investments. Market boosted on hearing this good news.

      The people behind this decision are more patriotic, intelligent and experienced than us. They took this decision after much discussions and thinking.

      Regards

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      ganesh 4 years ago

      Privatization and liberalization...Has the Government's policies made the rich; richer, and the poor; poorer? India is ranked as a potential destination; globally, in terms of financial attractiveness during 2010. Current declaration of pumping FDI into the retail sector has sparked debates for and against the act.

      Benefit of FDI in retail industry superimposes its cost factors. Opening the retail industry to FDI will bring forth benefits in terms of advance employment, organized retail stores, availability of quality products at a better and cheaper price. This would result in increased market growth and further expansion. On the contrary, it is also argued that FDI would create a 'survival of the fittest' situation in the retail sector. This move of the Government is feared to cause unrest among small industries. Foreign retailers would always prefer to invest wherein they get options for management control. It is been criticized that, initially they might sell the products at inexpensive prices, but later on they may force the indigenous retailers out of the market, and hike prices.

      Inviting FDI would augment Indian retail growth unquestionably, and the sector is already getting the rush. But, how successful would it remain in the long run?

      by

      sastra university students

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      priyanka 4 years ago

      FDI is great in India. It affects will be good. Some who think that FDI is not good I want to say them that please be think positive and act likewise

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      pramodgokhale 4 years ago from Pune( India)

      Sir,

      If it comes let it come , we face and it is customer who has choice to buy a product from local retailer or foreign.

      We can promote indian retail chains to compete.

      pramod gokhale

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      Kushalpal Singh 4 years ago

      i think FDI is more beneficial for indian people because it will be comes with innovative idea and technology .

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      MUKESHMALIK 4 years ago

      I THINK FDI IS NOT BENEFICIAL FOR INDIA BECOZE FDI USE MANY OUTCOUNTRY PROUNDS USE IN INDIA

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      Anurag Jain 4 years ago from Jodhpur

      fdi is not good for the country's retail market because although it will create benefits in the beginning and jobs also but it will create a large scale unemployment as it will disturb the un organised sector of today....so fdi should not be allowed at this time in the country......

      So this should be fought and dealt with certain possible ways

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      vinoth 4 years ago

      i m oppose

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      anjali 3 years ago

      fdi is benifited becoz investors cn diversify their holdings in outside countries.. nt only dat diversifictn helps in minimizn risks thus incrses in returns...

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      pramodgokhale 3 years ago from Pune( India)

      Sir, let us aloow them to start up because in Globalization era there is little scope to prohibit foreign retailers and we need to make a system to free from all regulation and let us see results and healthy competition.

      We can promote Indian retailers and support them.

      The bogey of Americanization of economy is a false propaganda and media needs to be more cautious before publishing controversies of this issue.

      pramod gokhale

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      PRIYANKA PATIL 3 years ago

      I DON'T THINK SO THAT ESTABLISHMENT OF FDI IS GOOD FOR OUR COUNTRY BECAUSE ONE IT WILL RULE OVER COUNTRY

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      nikhil 3 years ago

      please don't support fdi

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      supritha ganiga 2 years ago

      Nice explanation...Thankz

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      suresh chandra 2 years ago

      fdi in retail market will not affect small businesmen.They can stay in market as to sell products on reasonale profit.customer turns first to sea the glitter of big shop but get back to local shop where he can feel satisfication.so please let allow and see market growth.

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      Manraj shergarh 2 years ago

      it is so benefitial for projects of young genetation

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      swati k a 20 months ago

      there are some merits n demerits but development of our country our ability is important

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      reshma 20 months ago

      FDI should allow in India only to certain extent because being a developing country it needs good relationship with other helping countries FDI would lead to more comprehensive

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