Advantages and Disadvantages of FDI in India

FDI in India Advantages and Disadvantages

First of all, FDI means Foreign Direct Investment which is mainly dealings with monetary matters and using this way they acquires standalone position in the Indian economy. Their policy is very simple to remove rivals. In beginning days they sell products at low price so other competitor shut down in few months. And then companies like Wall-Mart will increase prices than actual product price.




Advantages

  1. Increase economic growth by dealing with different international products
  2. 1 million (1 Crore) employment will create in three years – UPA Government
  3. Billion dollars will be invested in Indian market
  4. Spread import and export business in different countries
  5. Agriculture related people will get good price of their goods

Disadvantages

  • Will affect 50 million merchants in India
  • Profit distribution, investment ratios are not fixed
  • An economically backward class person suffers from price raise
  • Retailer faces loss in business
  • Market places are situated too far which increases traveling expenses
  • Workers safety and policies are not mentioned clearly
  • Inflation may be increased
  • Again India become slaves because of FDI in retail sector

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