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to invest in India. Accounting to this is good for everyone. There are some
positive and negative impact. Such as Positive arguments:
Negative arguments :
FDI will lead to job losses. Small retailers and other small Kirana store owners will suffer a
large loss. Giant retailers and Supermarkets like Walmart, Carrefour, etc. will displace small retailers.
Supermarkets will establish their monopoly in the Indian market. Because of supermarkets fine
tuning, they will get goods on low price and they will sell it on low price than small retailers, it will
decrease the sell of small retailers.
Jobs in the manufacturing sector will be lost because foreign giants will purchase their goods
from the international market and not from domestic sources. This has been the experience of most
countries which have allowed FDI in retail. Although, our country had made a condition that they
must source a minimum of 30% of their goods from Indian micro and small industries, we cant stop
them from purchasing goods from international markets as per WTO law. So after coming to India,
they can reduce this 30% by litigating at the WTO.
At the first sight, we can see that benefits are more in numbers, but I think detriments are more serious.
Words for Government:- Please dont waste 21 days of precious time on adjourning the parliament on the
FDI issue. There are many bills which need to be passed immediatelylike the Jan Lokpal Bill and the Food
Security Bill.