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

  3. #3
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    Default Re: ►► is FDI good or bad for India ?? Guys need ur view for my presentation. :)

    Your disadvantages defy logic.

  4. #4
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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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  5. #5
    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.

  7. #7
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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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    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. :)

    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.

  9. #9
    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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  10. #10
    Human Spambot sujoyp's Avatar
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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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