Foreign direct investment (FDI) is 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.FDI is the investment by foreign countries in other coutry by paying the taxes to that government.Many countries have strengthened their economy by allowing FDI.The advantages of FDI for the foreign company is that they can do the business with cheaper wages,can have tax exemptions as per the contry/state policies.America ,Japan,Switzerland have practised FDI and have met the development.
The current row in India about FDI is on the decision to increase the rate of FDI.Government of India has taken a decision to allow FDi upto 49% in aviations,51% in multi-brand retail industry,74% in broadcat and 100%in single brand retail industry.The protests against 51% increase of FDI in retail are severe as bandhs are being called.People and non-ruling politicians reckon that FDI in retail is hazard to the economy of the country and this decision doesn't lead to growth besides the undesirable collapse of the economy takes place.Small firms and retailers will be lost complete in this flood of FDI in retail.Indians are astonished to know that we are No.1 in FDI besides the situations as no power, no food.
The government says that FDI in retail is pragmatic tool in building the economy at the present state of the nation.The major benefits can be jot down as follows,
1)There will more competitiveness among the retailers and products with greater qualitgy and cheaper in price will be available.
2)By the taxes like income tax,sales tax,vat etc., gained from the companies participating in FDI will be adding to the nation's economy.
The Prime Minister of India Mr.Manmohan Singh has stated that Money doesn't grow on tres and to gain money one must take a step by allowing the FDI in retail which provides money.He overthrew the statement saying that FDI causes collapse of small retailers by saying it is baseless.The plan pannel Deputy Chairman, Mr. Montek Singh Ahluwalia lauded the decision of FDi and Manmohan Singh for taking the decision.When he was asked that Manmohan Singh was one to protest against FDI in Opposition in 2002,he said that he doesn't remember what everyone says everyday.
The opposition leaders says that money does grow on trees for this government in the form of scams(2G,coal,mining etc.,).The claim that if all the black money can be bought back it wont be necessary for the FDI.There are some surveys which showed that intorduction of FDI led to the shutdown of 67% of small retailers in Thailand.However with decision taken immediately has shown growth by making the value of rupee stronger and stock value has reached the highest in the past four months.
Whatever be the babbles out there, I reckon that FDI may increase the money and make goods cheaper but will surely dampen the small retailers.I hope that FDI has most benefits than disadvantages and lead India to a greater place and for all this to happen one thing must always shoulid be of high priority, "No-Corruption" and leaders should work for the nation atleast by now than for themselves.
The current row in India about FDI is on the decision to increase the rate of FDI.Government of India has taken a decision to allow FDi upto 49% in aviations,51% in multi-brand retail industry,74% in broadcat and 100%in single brand retail industry.The protests against 51% increase of FDI in retail are severe as bandhs are being called.People and non-ruling politicians reckon that FDI in retail is hazard to the economy of the country and this decision doesn't lead to growth besides the undesirable collapse of the economy takes place.Small firms and retailers will be lost complete in this flood of FDI in retail.Indians are astonished to know that we are No.1 in FDI besides the situations as no power, no food.
The government says that FDI in retail is pragmatic tool in building the economy at the present state of the nation.The major benefits can be jot down as follows,
1)There will more competitiveness among the retailers and products with greater qualitgy and cheaper in price will be available.
2)By the taxes like income tax,sales tax,vat etc., gained from the companies participating in FDI will be adding to the nation's economy.
The Prime Minister of India Mr.Manmohan Singh has stated that Money doesn't grow on tres and to gain money one must take a step by allowing the FDI in retail which provides money.He overthrew the statement saying that FDI causes collapse of small retailers by saying it is baseless.The plan pannel Deputy Chairman, Mr. Montek Singh Ahluwalia lauded the decision of FDi and Manmohan Singh for taking the decision.When he was asked that Manmohan Singh was one to protest against FDI in Opposition in 2002,he said that he doesn't remember what everyone says everyday.
The opposition leaders says that money does grow on trees for this government in the form of scams(2G,coal,mining etc.,).The claim that if all the black money can be bought back it wont be necessary for the FDI.There are some surveys which showed that intorduction of FDI led to the shutdown of 67% of small retailers in Thailand.However with decision taken immediately has shown growth by making the value of rupee stronger and stock value has reached the highest in the past four months.
Whatever be the babbles out there, I reckon that FDI may increase the money and make goods cheaper but will surely dampen the small retailers.I hope that FDI has most benefits than disadvantages and lead India to a greater place and for all this to happen one thing must always shoulid be of high priority, "No-Corruption" and leaders should work for the nation atleast by now than for themselves.
