is fdi in fmcg really bad for india?

Answer :FDI investment in retail sector -- is it bad for India? -- This is a ticklish question indeed. this can be answered for and against. It can be said that FDI in retail sector it is allowed -- 1) India may receive more money inward from foreign countries. Money circulation will go up. investments will go up. Stock market index may go up. it may help a few mutual funds, banks and high investors to make gain. 2) Cost of living will automatically go up because money available in the hands of public increases. 3) It will be affecting the already affected poor people of India. their income levels will not increase. The expenditure alone will increase. It will put them into strain. 4) Retail traders -- small traders may be losing business to big retailers and some of them may have to go out of business or be without job or employment. 5) If Indians also go abroad and invest in other countries and earn more --it is not possible because China will not permit and there is no increasing market as that of India in other countries --it may enable India to earn foreign exchange and help its economy. But this is not likely to happen. 6) Producers may receive initially higher amounts. Later on these big companies will become monopoly and then they may pay less only to producers. 7) Initially employment may increase in this sector. But slowly when small retailers lose business the effect may be the same position or worse. Finally FDI is not advantageous for India.

Answer :first they need to make sure that the farmers and the manufacturers in India become competitive with their global counterparts and then they can bring in FDI. in current scenario being FDI will mean that US companies will setup retail chains and they will sell china products and the only jobs indians will get are of sales boys and sales girls. first they need to make sure they have setup a good system which helps the local manufacturers and farmers to produce goods at cheaper rates..

No comments:

Post a Comment

Thanks for your Interest.

We will get back to you shortly on this.

Blog Archive