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Recently I came through a news on FDI that there are meeting going all around on allowing 100% e-commerce (B2C) in the Indian Markets. India is also under pressure from Washington and Tokyo to relax its FDI policy for e-commerce. But I ask why should we open when China and Japan have yet not initiated the same.
Hence, the question that is arised is that do we need the FDI in our country or not? This is a very debatable topic. My opinion differs from Sector to Sector. Till date, we have investment in Tertiary Sector mostly like in Asset Reconstruction Companies, Civil Aviation, Courier Services, Private Sector Banks, Single Brand Retail, Tea Plantation, Tea Plantation, Tourism(all these have 100% FDI) etc. I feel FDI in Tertiary sector should be minimized. The disadvantage of FDI in this sector is that firstly it does not provide that much amount of employment as much it has the potential if it is introduced in Secondary Sectors. Secondly, if we want to move towards the aim of a developed country we need to expand our Manufacturing Sector. Thirdly, there is low cost of investment in this sector and higher profits and all profits goes back to foreign country. If we see an example then our neighboring country, China has a $59.1 billion FDI Investment out of which maximum is added up by manufacturing-‘MADE IN CHINA’.
Hence, We need to now shift our focus to Manufacturing Sector and Primary sector. We do have 100% FDI in Agriculture. Our aim of ‘MADE IN INDIA’ can be boosted by introducing FDI as we have less no. of high investors in the country, Hence, FDI will bring Money, Employment and hence bring development in our country.
Therefore, FDI is not bad for our country only we have use it’s good sides in our favor in to order to make India a developed country.
17 Comments. Leave new
Good work!!
Highly informative!
Nice And informative
In my point of view fdi in B2C e-commerce is not bad bt 100% is not good as well. We have amazon India and this will initiate more foreign investors to move towards Indian e-commerce. And I agree with view that we need it in primary sector.
I do agree with the fact that FDI is good. but if its interference can me minimized in some sectors(tertiary sector) of the economy then its even better.
Absolutely agree with you! Good oneN
Absolutely agree with you! Good one!
I completely agree to you.
FDI will bring in investment but also take away profits…. What about that?
100% FDI is a debatable topic for developing countries like India..Definitely it has good aspects related to it but it should be implemented after careful considerations and advise from experts..
Excellent article..!
Yuvraj Bro..for developing countries FDI is very important as the country itself does not have the sufficient funds bcoz if it would have then it would be a developed country.
Secondly, If FDI is important then the profits will surely go outside. Hence, the thing left with developing country is that it can channelize FDI into such sectors where there development of the country also nd only prprofits are being earned with low investment by MNC’s as stated in my blog also.
I have I cleared much of ur doubts. 🙂
I think what we need to do is expand the business horizons by accepting 100% FDI then put the balls in our own court as soon as the industry flourishes.
FDI will contribute towards building our economy so sud provide a support to bring in..!!
FDI is definitely required for a country’s long term growth.
the importance of FDI is explained very well !
liked it !
Being economic studnet ..i agree with your words..FDI is very crucial for economic devlopment