THE FOREIGN WAYYYYYYYYYYYYYYYYYYYYYY..
First I want to preface this article with a great expression of thanks to all the readers who read my blog and pay heed to my works.
Today I am going to talk about on of the hot gossips perennial and ubiquitous in India. Yes, you are right I am talking about the FDI in India. Something that is all the rage and has attracted the attention and enthralled the people of India whenever the issue arises in the public debate and the government thinks of doing anything about the issue. The issue is Foreign Direct Investment (FDI) which has proved as a nightmare for the small retailers and companies and a very relishing and jovial thing for opposition parties and has been used as ammunition by the opposition in order to condemn and rebuke the policies of government.
Some people are deeming FDI as their while some are considering the FDI as a way of approaching the methods of foreign countries and companies in order to make their company successful, while some other people who have no knowledge about the economy cast their vote in Can't Say ballot because because of apathy for the topic. But if we consider the issue from different angles, we will find that FDI in retail is definitely going to adversely affect everyone and everything in India, Its going to exterminate someone's life while on the other side it is going to make someone's life beautiful, but before jumping to any conclusion so easily lets discuss about the topic deeply and from every angle so that nothing is left out.
What is FDI? Almost everyone is talking about these three alphabets that are going to change the lives of people but only few people are aware and clearly know- What is FDI????????
FDI refers to Foreign direct investment (FDI). From the meaning its transparent and clear that it is related to some foreign activities. FDI direct investment
into production in a country by a company located in another country,
either by buying a company in the target country or by expanding
operations of an existing business in that country.
Nowadays FDI is prevalent in all the developing countries- and Chinese government has even said that- Persuading other companies to work in a country has now become a goal of countries.
If FDI is allowed in a country, this means that the country is allowing and permitting foreign companies to invest in the country by
The merits of FDI in India are -
1. Farmers- The reason given by the government of India in support of the FDI in retail. The role of intermediaries who earn a lion's share in the transportation, buying and selling of grains and crops. These people buy crops at a very low and cheap rate from peasants and sell them at a considerably high price in the markets. But if FDI comes, then companies will directly buy crops from farmers and the role of intermediaries will be dwindled.
2. Technology diffusion and osmosis- Through FDI, Indian companies can also know about how foreign companies work and how everything is maintained which will assist them in gaining success in business.
3. Choice - With so many brands, Indian customers will get a large choice of projects to choose between various companies.
4. Import and Export- This will open the gates for import and export businesses and will open a wide spectrum for those companies.
5.Employment - FDI has also ensured a number of employment opportunities by aiding the setting up of industrial units in various corners of India.
But as we all know "To get something we have to lose something." And the same case is with FDI (Foreign Direct Investment). To avail the cons we have to also bear the cons of this FDI.
In this case pros will pave the ways for cons.
Some of the cons of FDI in retail are:-
1. Draining out of National Income - There will be huge draining out of national income if we allow the FDI, because foreign companies which are more developed than our companies will take all the credits and then use the money in their own company which will lead to the draining of National Income.
2. Small Retailers - Small retailers will be very harshly affected by this FDI as when big companies will come near our home then, we will undeniably prefer to use the products of big companies and the small retailers, shopkeepers would not earn money which would result in their extinction.
3. Indian Companies - There are many computer software companies in India but only two or three like Wipro, Infosys are famous, this is because of the monopoly of companies like Micorsoft, Apple, HP, Samsung etc. in the computer Market. If this is the situation sans FDI in India, then what will happen if the FDI is allowed and permitted.
The last thing that I want to conclude is that FDI is having both good as well as bad features, so India should use the FDI in a limited way and should maintain strictness from the very beginning.
JAI HIND, JAI BHARAT, JAI MA BHARTI.
If FDI is allowed in a country, this means that the country is allowing and permitting foreign companies to invest in the country by
- by incorporating a wholly owned subsidiary or company
- by acquiring shares in an associated enterprise
- through a merger or an acquisition of an unrelated enterprise
- participating in an equity joint venture with another investor or enterprise.. --
The merits of FDI in India are -
1. Farmers- The reason given by the government of India in support of the FDI in retail. The role of intermediaries who earn a lion's share in the transportation, buying and selling of grains and crops. These people buy crops at a very low and cheap rate from peasants and sell them at a considerably high price in the markets. But if FDI comes, then companies will directly buy crops from farmers and the role of intermediaries will be dwindled.
2. Technology diffusion and osmosis- Through FDI, Indian companies can also know about how foreign companies work and how everything is maintained which will assist them in gaining success in business.
3. Choice - With so many brands, Indian customers will get a large choice of projects to choose between various companies.
4. Import and Export- This will open the gates for import and export businesses and will open a wide spectrum for those companies.
5.Employment - FDI has also ensured a number of employment opportunities by aiding the setting up of industrial units in various corners of India.
But as we all know "To get something we have to lose something." And the same case is with FDI (Foreign Direct Investment). To avail the cons we have to also bear the cons of this FDI.
In this case pros will pave the ways for cons.
Some of the cons of FDI in retail are:-
1. Draining out of National Income - There will be huge draining out of national income if we allow the FDI, because foreign companies which are more developed than our companies will take all the credits and then use the money in their own company which will lead to the draining of National Income.
2. Small Retailers - Small retailers will be very harshly affected by this FDI as when big companies will come near our home then, we will undeniably prefer to use the products of big companies and the small retailers, shopkeepers would not earn money which would result in their extinction.
3. Indian Companies - There are many computer software companies in India but only two or three like Wipro, Infosys are famous, this is because of the monopoly of companies like Micorsoft, Apple, HP, Samsung etc. in the computer Market. If this is the situation sans FDI in India, then what will happen if the FDI is allowed and permitted.
The last thing that I want to conclude is that FDI is having both good as well as bad features, so India should use the FDI in a limited way and should maintain strictness from the very beginning.
JAI HIND, JAI BHARAT, JAI MA BHARTI.
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