Question

What is your opinion about foreign companies setting up retail shops in India?do you think they can generate employment in India? Explain

Answer 1

Answer:

FDI in retail industry means that foreign companies in certain categories can sell products through their own retail shop in the country. At present, foreign direct investment (FDI) in pure retailing is not permitted under Indian law. Government of India has allowed FDI in retail of specific brand of products. As India is one of the developing countries, so FDI must be promoted but must be kept under control as it can affect the economy of the country.

FDI in retails

FDI in INDIA

FDI in my opinion is bad for the country’s economy. As we are in the category of developing country and to develop properly we need to control the country’s economy very carefully. If the % in FDI in retail sector (multi-brand) is increased then the investment in India’s retail market will be from foreign investors and the profits are also drained to the investors. And moreover in INDIA, the retail sector mainly depends upon the agricultural sectors and the producer and if FDI is increased then it is going to affect the agricultural sector of the Country very badly and which will affect the country’s economy. And if the % of FDI is increased to 100% in retail (both single and multi-brand) sector then government will lose the control over this sector completely and then it cannot help in controlling this sector with its rule and regulations as the whole retail sector would be privatized. And this privatization can make a very serious effect on the country’s economy.

Answer 2

$\huge{\underline{\mathfrak{\green{Answer:}}}}$

• Foreign direct investment will definitely help the farmers in long run.

• It is argued that there will be loss of jobs in traditional, smaller retail sector.

• However, the purchases by the big supermarkets will increase demand for agricultural products.

• Which in turn will expand agricultural output.

• Which in turn may increase demand of labour.

• This will increase wages in the long run.