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Monday, March 26, 2012

Is FDI good for India?

Points to be known :- 
  • Full form of FDI is 'Foreign Direct Investment'.
  • FDI can be defined as 'one company can invest on physical means such as lands, factories and mines in another company of another country to acquire lasting management interest'.
  • The host company and the company, which is investing together form a 'multinational corporation' (MNC).
  • Through FDI, the company, which invests will have control over the host company.
In Favor :- 
  • FDI helps in the economic development of the host country (where the investment is being made).
  • For origin and host countries, FDI provides access to new technologies, products, skills and organizational and management strategies.
  • Employment increases in the host country.
  • Origin country (the country which makes the investment) also develops economically.
  • Competition increases. So that, with the competitive spirit, every company improves to its best.
  • Through FDI in production companies, price reduction is possible.
  • FDI is a boon for the small companies to become more actively involved in international business activities.
  • Agriculture related people get good price for their goods as middle men will be eliminated.
In Against :-
  • With the FDI in retail sector, small companies and merchants will suffer a lot.
  • Inflation (the rise in prices over a period of time) may be increased.
  • Technological dependence on foreign technology sources.
Conclusion :-
             FDI is good for any country to develop economically and also technologically.

15 comments:

  1. points r simple and easy to remember..

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  2. some points in for r written in negative under the sub heading " in against"... so clear & solid idea can't be generated and leads to confusion in the minds of the reader

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  3. points are goods & easy to learn

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  4. The first step is the evelastieg step

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  5. Its a giving full knowledge about FDI.Points and views are simple so everybody can understand. so its good for viewers.

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  6. points are good but matter is not enough

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  7. thanx for providing this information..........

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  8. thank u manchi information echinanduku chala manchi work chesav.....
    enka manchi gd topics add cheyagalavu

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  9. very good information and good work.....

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  10. It's good for India but some create rumor which is not good we must welcome FDI

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  11. Really It's written in quite simple language. It is beneficial for our country.

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  12. Really it's very well explained. we should had accept FDI earlier. China is involve in FDI from 1992. I would say that like two sides of a coin, FDI in retail sector will also have its pros and cons. Like, if we consider its main advantages, we can say that it will bring modern technology, improve rural infrastructure, create a competitive market, enable our farmers to get better prices for their crops, Government will get an additional US$ 25-30 billion by way of taxes, a solution for food inflation as investments in cold storage chain infrastructure would reduce loss of agricultural produce and provide more options to farmers. And some disadvantages could be that we will be competing with such economies whose interest rates are as low a 4% as compared to our 14% to 16%. Also, we engage millions of uneducated and semi-educated people at various stages of retail business but Tesco and Wal-Mart will only engage smart and educated workforce in small strength, comparatively. Finally we can say that if FDI in retail is allowed with certain preconditions, it will help boost the Indian economy in the long run and will project a positive image of India regarding its liberalization policies. It will help growth of exports and employment generation.

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  13. We must welcome FDI in retail sector because its good for India and also for an Indian. FDI has the quality to creates the the new India in ALL THE SECTORS. But more in Agri. sector because approx 18% people of total population working in this sector. farmers are very dejected, because they don't get their actual value of their HARD Work. Or our Govt. must Welcome The FDI with open Hand to INDIA became A Super power for the World in future . India get an opportunity to get the new technologies, Skills and new strategies. So as an Indian I must say WELCOME FDI. in Our COUNTRY A GREAT COUNTRY ... INDIA :)

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