FDI IN RETAIL

FDI IN RETAIL

Hello friends.

  We are in favour of FDI in retail. India is a developing nation and like any developing business the Indian market also needs lots of investment for its growth, for the growth of the country. We agree with  my friend as they says that we talk about globalisation on one side and put off the idea of FDI on the other hand.

I just want to put some valid points why it is necessary in a developing country like India.

1. Stable economy.
2. Low inflation.
3. Access to the advance technology of the world.
4. World class infracture.
5. Better utilisation of resources.
6. Good foreign exchange.
7. Increase in employment.
8. Increase in the no.of trained labours.

These are just few but major advantages. Now we want to give some practical data from India and across the world.

Before 90's FDI was not considered good for the country. But after 91 when FDI was allowed in India.

1. GDP grew from 1.7 % to around 5% in 95.

2. Inflation came down from 17% to 7% in 95.

3. Financial deficient came down to $1 billion from $9 billion in 95.

Now if we talk in the context of the world there are many asian countries where it is accepted heartedly. Malaysia, Singapore is such countries which accepted this policy and all of us are aware of the development of this two countries. In china they have the policy that chinese government won't accept an investment below a certain amount but it may go upto even 100% investment. The minimum investment should be 25% in china. Similar is the case with Thailand. But in India we talk that investment should not be higher than a fixed value in most of the sectors. Currency reserve bank of India allows fdi with max 51%.

Investment in most of the sectors except one or two sectors where it is 100%.

There may be some demerits also of FDI like.

1. There may be monopoly in the market if a particular investor is the major player.

But we think this problem can be sort out with some strict rules and of course if our leaders play their role actively and wisely.

Over all we want to conclude that FDI is very necessary in India if it wants to run on the track of developed nations. There may be some demerits but it has major advantages as compared to demerits. And we should change our thought for this. We should try to look the other side of the coin which has many gifts for us.

Thank you.