Foreign Direct Investment (FDI) in retail
Foreign direct investment (FDI) is a direct investment into production or business in a country by a company in another country, either by buying a company in the target country or by expanding operations of an existing business in that country. Foreign direct investment is in contrast to portfolio investment which is a passive investment in the securities of another country such as stocks and bonds.
Indian Govt.allow foreign multibrand retailers like Walmart and Tesco to open shop in the
country ,which has been trying to get India’s lagging economy back on track
FDI should not be implemented in all sectors. It must be implemented in those areas from
where we can get maximum benefit of improving our technology and our economy.
healthy competition that foreign stores would create that can bring down prices.
farmers getting their proper share due to direct procurement of these stores
availability of varied products for consumers
possibility of lower inflation
chance of creating more jobs in retail sector
Is the traditional middlemen, the biggest winners of today’s retail structure?
small traders & stores could lose to high end multi brand stores
The Entry of Walmart and Big Retail Chains Will Change India
cheap imported goods might wipe out Indian products
govt. must control middle men & hoarders to strengthen the current chain than to allow
foreign companies into India
policies must be formulated to increase production
local farmers will benefit only if these companies procure from them.What if they don't?