Is Foreign Direct Investment (FDI) in retail sector good for India?

September 05, 2017

In my opinion, FDI to some extent is good for our country as it creates job opportunities for the youth. There will be a healthy competition between the foreign companies and local companies to capture the market which is good for the customers as they will get better quality products at cheap rates. But as we know that it has some drawbacks also as it directly affects the small scale industry in the country and the local retailers also. So it is very important that small scale industries should also be empowered by the government as we can't rely completely on foreign companies and we need to become self-sufficient which is very important for any country to achieve growth.

Benefit of FDI in retail sector could be:

1. Benefit of scales which further leads to reduction in cost and same product available at lower cost.

2. Improvement in infrastruture such as cold storage which in result reduces wastage from farm.

3. More tax compliance as organiszed player enter the market.

4. M.N.C which bring in FDI also integarate Indian economy with rest of the world which allows our product avilable in other country and vv.

As more FDI is coming in India we are moving towards organized retail market with players such as Walmart, reliance etc.