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Thread: ►► is FDI good or bad for India ?? Guys need ur view for my presentation. :)

  1. #1
    Wise Old Owl kool's Avatar
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    Lightbulb ►► is FDI good or bad for India ?? Guys need ur view for my presentation. :)

    Guys... in next 5 days i've to show PPT in my class, either in favor or against of FDI. so what u guys think? I'm against it.



    FDI in India Advantages and Disadvantages

    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


    reply guys...........
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  2. #2
    Alpha Geek webgenius's Avatar
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    Default Re: ►► is FDI good or bad for India ?? Guys need ur view for my presentation. :)

    "An economically backward class person suffers from price raise" -> I think this is not true. If anything, prices will get more competitive. If prices increase substantially, a normal guy will purchase from a local nearby store. Prices will be more competitive since there are no middlemen involved, and in the end it is a win-win situation for both the manufacturer and the consumer since both benefit. Manufacturer gets more amount for his goods, and consumer benefits by paying a lower price.
    But it will affect local retail shop owners and distributors.

    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.

    One major advantage: Lot of new jobs will be created. Many retail chains abroad offer pension too for their employees. Just imagine how helpful this would be if they offer the same here in India.

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    Default Re: ►► is FDI good or bad for India ?? Guys need ur view for my presentation. :)

    Your disadvantages defy logic.

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    Default Re: ►► is FDI good or bad for India ?? Guys need ur view for my presentation. :)

    Yes, FDI will increase the economic growth of India with the cost of eliminating last of the local-brand out of the market.

    If it's a joint-venture based, there's a possibility of growing us along with them as like Maruti-Suzuki. (Correct me if i'm wrong).

    There should be some strict policies that needs to be developed that will effect their each and every action, if they do anything wrongly. Else, the sentence will end like "there's not a specific clause in the legislation regarding for a company when it engaged in activities like this". This very sentence will surely serves a HOLE for them to escape off the situation.

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    Wise Old Owl kool's Avatar
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    Default Re: ►► is FDI good or bad for India ?? Guys need ur view for my presentation. :)

    Quote Originally Posted by webgenius View Post
    "An economically backward class person suffers from price raise" -> I think this is not true. If anything, prices will get more competitive. If prices increase substantially, a normal guy will purchase from a local nearby store. Prices will be more competitive since there are no middlemen involved, and in the end it is a win-win situation for both the manufacturer and the consumer since both benefit. Manufacturer gets more amount for his goods, and consumer benefits by paying a lower price.
    But it will affect local retail shop owners and distributors.

    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.

    One major advantage: Lot of new jobs will be created. Many retail chains abroad offer pension too for their employees. Just imagine how helpful this would be if they offer the same here in India.
    1 million people get employment but at same time 50 million merchants will affect there is no doubt that we will become slaves......
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    Default Re: ►► is FDI good or bad for India ?? Guys need ur view for my presentation. :)

    Quote Originally Posted by kool View Post
    1 million people get employment but at same time 50 million merchants will affect there is no doubt that we will become slaves......
    Agreed. Instead of FDI, Govt could have given more importance to India based retail chains by giving them more subsidy. FDI will just increase the unemployment rate and benefit foreign retail chains, with little money staying back in India.

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    Default Re: ►► is FDI good or bad for India ?? Guys need ur view for my presentation. :)

    More subsidy? i think govt needs to cut down on that.....and give a nice kick so that they get a bit "inspiration".
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    Default Re: ►► is FDI good or bad for India ?? Guys need ur view for my presentation. :)

    Quote Originally Posted by sumonpathak View Post
    More subsidy? i think govt needs to cut down on that.....and give a nice kick so that they get a bit "inspiration".
    By more subsidy, I meant less taxes. It is time we saw some organized retail chains like in other countries.

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    Super Moderator Anorion's Avatar
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    Default Re: ►► is FDI good or bad for India ?? Guys need ur view for my presentation. :)

    advantages
    expertise and methodology in the relevant sectors
    technology will help increase productivity and reduce waste
    consumers will get better quality products
    Govt's protectionist policies and prohibitive taxes will no longer allow local manufacturers to get away with sub-standard products
    many sectors will get more organized, and their operations will be streamlined

    better media options hopefully

    we either need 100% across the board, or 0% and closed, with 51% there will just be more confusion, and more procedures when it does get to 100%, more heart ache for the companies, more brand disillusionment for the consumers

    disadvantages are made up, kirana stores have changed to the off the shelf format seen at malls, and the one-stop-shop concept has not clicked here yet. eg: supplies from Star Bazaar, clothes from Brand Factory.
    the argument that retailers and merchs will lose out does not hold, there's only one day market in many places in India even today, you have to buy everything you need on that one day
    remember when the kirana stores came up, those guys who used to walk down the road with carts selling their wares (pots and pans, veggies, fruits etc) disappeared? well no one complained about that. No one is complaining about mobile shops and internet shopping. But Walmart means everyone has to shut shop and go home. Yeah right.
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    Default Re: ►► is FDI good or bad for India ?? Guys need ur view for my presentation. :)

    I see nothing bad in FDI...
    Advantages -
    1.Lot of modern technologies like RFID,ERP integration,SCM integration with retails (Some have it some not)
    2. Why should indian company monopolise the market...do u think we should only drive maruti cars coz we have 51% share in it or u dream of driving BMW too which is almost imported..compitition is always good
    3. Billion dollar investment will increase the growth rate and finally ruppee will be strong again and prices of foreign goods will come down...oil prices too
    4. If u think of common merchants are getting effected then big bazaar and reliance freash have already done the damage...wall-mart will only come down to give compitition...
    5. If u think that the money earned will be earned by people of other country then again u r just targetting one segment...y not automobiles, mobiles, camera cosmetics, medicine...u r already spending millions on foreign products...even each parts of the PC or laptop u are using is imported and u paid to foreign country.
    6. U see 1 million jobs by these FDI ...think big...big bazar will be automatically afraid of them and will open more markets in every city and they will need more people...this way the employement estimated may be double up

    ok for the sake of sanity only one disadvantage I see is we may see more china ka maal if indians dont produce products at affordable rate...BTW wall-mart is the biggest importer from china...there they produce there own brand products and sell in USA (Ref -case study in MBA )
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    Default Re: ►► is FDI good or bad for India ?? Guys need ur view for my presentation. :)

    @OP, you are doing a presentation on FDI in India but the material you posted seems to be containing "your thoughts" and "newspaper article". Is that you call a research?

    To do a presentation on such topic you have to have some strong logic based on facts.
    Go though this link and read in details on why and how about FDI
    Reserve Bank of India

    And, to make your life easier someone more mature already did research on it and presented a paper. Read it here http://cci.gov.in/images/media/Resea...d%20Sector.pdf

    Few points from that link,

    (new)FDI policy in India
    1. Single brand retailers such as Apple and Ikea, can own 100% of their Indian stores, up from previous cap of 51%.
    I hope this obviously does not impact all those poor farmers and shopowners.

    2. The retailers (both single and multi-brand) will have to source at least 30% of their goods from small and medium sized Indian suppliers.
    The catch phrase "at least 30%". So small and medium suppliers are already included in plan. What to understand here is that the market for these suppliers are growing rather squeezing. More options to sell your goods and at a regulated price and organised manner.

    3. All retail stores can open up their operations in population having over 1million.Out of approximately 7935 towns and cities in India, 55 suffice such criteria.
    The stores are allowed to open in cities where the population is over 1million i.e. 10 lack.

    4. Multi-brand retailers must bring minimum investment of US$ 100 million. Half of this must be invested in back-end infrastructure facilities such as cold chains, refrigeration, transportation, packaging etc. to reduce post-harvest losses and provide remunerative prices to farmers
    Did you notice that Govt. has mandated to invest in which categories? cold chains, refrigeration, transportation, packaging. Can you imagine how many people can get job if all these are made possible. Just imagine a "Big Bazaar" store, now tell me how many people do you see working there? At least 50 in such shop and its front end business.

    5. The opening of retail competition (policy) will be within parameters of state laws and regulations
    And the most important of them all...its still under control of state laws (read CMs). If any state (as if WB) does not want any FDI in it, it can certainly decline to do so.
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    Default Re: ►► is FDI good or bad for India ?? Guys need ur view for my presentation. :)

    Quote Originally Posted by sujoyp View Post
    I see nothing bad in FDI...
    Advantages -
    1.Lot of modern technologies like RFID,ERP integration,SCM integration with retails (Some have it some not)
    More jobs and projects for companies

  13. #13
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    Default Re: ►► is FDI good or bad for India ?? Guys need ur view for my presentation. :)

    There nothing, absolutely nothing bad about FDI (i.e. no disadvantages) except for the situation where any rule is abused.

  14. #14
    Wise Old Owl kool's Avatar
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    Default Re: ►► is FDI good or bad for India ?? Guys need ur view for my presentation. :)

    Quote Originally Posted by sujoyp View Post
    I see nothing bad in FDI...
    Advantages -
    1.Lot of modern technologies like RFID,ERP integration,SCM integration with retails (Some have it some not)
    2. Why should indian company monopolise the market...do u think we should only drive maruti cars coz we have 51% share in it or u dream of driving BMW too which is almost imported..compitition is always good
    3. Billion dollar investment will increase the growth rate and finally ruppee will be strong again and prices of foreign goods will come down...oil prices too
    4. If u think of common merchants are getting effected then big bazaar and reliance freash have already done the damage...wall-mart will only come down to give compitition...
    5. If u think that the money earned will be earned by people of other country then again u r just targetting one segment...y not automobiles, mobiles, camera cosmetics, medicine...u r already spending millions on foreign products...even each parts of the PC or laptop u are using is imported and u paid to foreign country.
    6. U see 1 million jobs by these FDI ...think big...big bazar will be automatically afraid of them and will open more markets in every city and they will need more people...this way the employement estimated may be double up

    ok for the sake of sanity only one disadvantage I see is we may see more china ka maal if indians dont produce products at affordable rate...BTW wall-mart is the biggest importer from china...there they produce there own brand products and sell in USA (Ref -case study in MBA )

    how FDI can help common men like us..??

    i thnk its true FDI will raise our GDP or stocks but what about the majority people in india? the day Indian govt welcomed walmart the same day US thrown out same walmart..Why so in-spite US is an advanced country?its just bcoz FDI means selling out nation...... it has led 78% affect to people in Thailand & tomorrow same gonna be state of INDIA...
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    Default Re: ►► is FDI good or bad for India ?? Guys need ur view for my presentation. :)

    See it this way. A businessman willing to do business in your premises, which you yourself haven't thought of, in return of few good bucks of moolahs and promised job to your known tos and friends!

    FDI has nothing to be feared of nor does this will-took-India-by-storm thing. FDI isn't going to bring an overnight change in Indian economy nor in Indian retail scenarios. Kirana stores were here to stay, will stay and stay forever. They aren't going anywhere. Apart from personal bonding with customers and generous lending scene, I am sure as anything Baniya lobby is working hard to get the best counter practice which will ultimately be only rewarding for us.

    For the money going into foreign lands, that is not correct again. Indian retailing laws clearly specify a fixed digit of income that can be taken out as the profitability ratio, rest, you either keep the money in India or take it out after 5-6 odd years by which company would already be sweeling their presence (if hit the right chord) or backpacking (if they struck too hard!).

    Also, infact the involvement of middlemen shall be decreased, or for the record, should be wiped out completely.

    Last, for the competition for small retail stores and other things, I as a customer, am willing to play my stakes on FDI induced retailers just because I am sick of adulteration and below par sub standardized stance of product for which I pay through my nose.
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    Default Re: ►► is FDI good or bad for India ?? Guys need ur view for my presentation. :)

    nono FDI means selling in the Nation
    that cashew farmer is using his land to raise emus, or investing in some new hybrid bananas, or investing in a ponzi scheme or chasing some other pipe dream to get a quick buck, if there is FDI, these kinds of things wont happen, instead of stock lying waste in godowns, it will be put to use, we will only figure out what we specialise in, what we are good at, only after we open up
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  17. #17
    Wise Old Owl kool's Avatar
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    Default Re: ►► is FDI good or bad for India ?? Guys need ur view for my presentation. :)

    Quote Originally Posted by shashankm View Post
    See it this way. A businessman willing to do business in your premises, which you yourself haven't thought of, in return of few good bucks of moolahs and promised job to your known tos and friends!

    FDI has nothing to be feared of nor does this will-took-India-by-storm thing. FDI isn't going to bring an overnight change in Indian economy nor in Indian retail scenarios. Kirana stores were here to stay, will stay and stay forever. They aren't going anywhere. Apart from personal bonding with customers and generous lending scene, I am sure as anything Baniya lobby is working hard to get the best counter practice which will ultimately be only rewarding for us.

    For the money going into foreign lands, that is not correct again. Indian retailing laws clearly specify a fixed digit of income that can be taken out as the profitability ratio, rest, you either keep the money in India or take it out after 5-6 odd years by which company would already be sweeling their presence (if hit the right chord) or backpacking (if they struck too hard!).

    Also, infact the involvement of middlemen shall be decreased, or for the record, should be wiped out completely.

    Last, for the competition for small retail stores and other things, I as a customer, am willing to play my stakes on FDI induced retailers just because I am sick of adulteration and below par sub standardized stance of product for which I pay through my nose.

    thnx
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    Default Re: ►► is FDI good or bad for India ?? Guys need ur view for my presentation. :)

    Quote Originally Posted by Anorion View Post
    disadvantages are made up, kirana stores have changed to the off the shelf format seen at malls, and the one-stop-shop concept has not clicked here yet. eg: supplies from Star Bazaar, clothes from Brand Factory.
    the argument that retailers and merchs will lose out does not hold, there's only one day market in many places in India even today, you have to buy everything you need on that one day
    remember when the kirana stores came up, those guys who used to walk down the road with carts selling their wares (pots and pans, veggies, fruits etc) disappeared? well no one complained about that. No one is complaining about mobile shops and internet shopping. But Walmart means everyone has to shut shop and go home. Yeah right.
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