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The Indian government is thinking to open their door for foreign companies

to invest in India. Accounting to this is good for everyone. There are some
positive and negative impact. Such as Positive arguments:

Because of the investment of foreign companies, job opportunities


in areas like marketing, agro-processing, packaging, transportation, etc.
will be created. According to the Government, 10 million new jobs will
be created.
Because of FDI, the post of middlemen in India will be removed.
Because of that, farmers will get a good price for their crops and their
exploitation will stop (which is going on for the last 150 years).
Foreign companies will invest around $100 million in India. Because
of that, infrastructure facilities, refrigeration technology, transportation,
etc. will be renovated. That will lead to low-inflation rate.
According to the Indian Governments conditions, foreign
companies have to source a minimum of 30% of their goods from
Indian micro and small industries. This will provide the scales to
encourage domestic manufacturing, by creating a big effect for
employment and to upgrade the technology.
Countries like China, Indonesia, and Thailand already have 100%
FDI in retail. After allowing FDI in retail, these countries have
experienced tremendous growth in the agro processing industry,
refrigeration technology and infrastructure.
Foreign companies will also create a supply-chain in the India
market. Because of that, food which perishes due to bad infrastructure
facilities and refrigeration, will not be wasted.

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.

In India, we have 11 shops per 1000 people.


India has 1.2 crore shops, which gives employment to about 4 crore people.
What about the problems which these 4 crore people will suffer?
As Indian governments condition, companies will buy 30% from small industries of India, but what about
the other 70%? Walmart and all these big giants import their majority goods from China. If we consider
Walmart as a country then Walmart will be the one of the top-10 countries which is importing goods from
china. These giants will dump goods from China. We cant stop them for doing this.
Our PM is saying that allowing this major FDI will bring new technology to India and it will bring proper
refrigeration technology so that wastage of food/grains can be stopped. But dont you think India itself is
capable for that? Why cant our government build storages for refrigeration of food? Is it ok to open our
countrys gates for foreign giants just because of this reason? Why we are not passing Food Security Bill,
which is still in the parliament? If government is not capable of building a supply chain and infrastructure,
we can open this field for Indian entrepreneurs.
Government is saying the cities which have a population of more than 1 million are open for these foreign
companies. This is totally illogical. I bet, in the next 10 years they will open their stores in small cities, after
opening their stores in metros first and so on.
Today, when the American President is requesting their citizens to buy goods from small retailers, we are
inviting them to our country. These companies have ruined their own country and we are expecting that
they will save our farmers and food. We are expecting that they will give new technology and will invest in
India to help our poor fellas. This is bull. Argument that only foreign companies can create the supply
chain for farm produce is totally illogical. International retail players have no role in building roads or
generating power. They are only required to create storage facilities and cold chains. This could be done
by government of India also. I think there is no need to allow 51% FDI in India at this point. No need to go
so fast. We should discuss this point in parliament (peacefully!).

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.

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