FDI Foreign Investment plan has recently shaken the Indian market. With the waves of implementing FDI in India, there are debates and talks in the whole country.
The Indian market has been divided into two types The Wholesale and the Retail, the foreign industries have slowly stared to curb down the Indian market by producing its products into the whole sale market, which has also opened new gates of investment in India.
What is FDI?
Foreign Direct Investment is a term used to refer to all kinds of investment activities. To talk in lay mans language Indian market has been divided into two types- Wholesale and Retail.
Whole sale market is the market which has company whose owners are sitting abroad and managing one major industry which manufactures its goods and products and sell them in the retail market.
Retail market is the small shops near your houses and colonies which are the suppliers to the goods and products, or you can say are middle men who get goods from whole sale manufacturers and provide the entire goods in you reach; retailers are the people responsible for supplying you the goods.
India stands on the second position being the populous country, and hence has the maximum consumers compared to any other country in world. Hence the good consumption is high; also India has been a successful market place of the world. Hence we can see that foreign companies have set their foot on the Indian land and have started making money. These companies do earn on their own land, but the number of consumers is less compared to India.
FDI in India-
7th December 2012, FDI cleared all its entry barriers in the India market with support of UPA government. There was a voting poll conducting the parliament sessions, where Mayawati and Mulayam Singh clearly boycotted the voting panel hence making an easy way out for the government.
This poll was conducted on the basis of having Wal-Mart and Tesco as the local market outlets in India.
Foreign Direct Investment, will change the scenario of the Indian market now you would be able to have products at the cheapest rates, you would have the Coke and Pepsi outlet in your colony. This will definitely affect the other retailers and the middle men in the business of transportation and those who were dependant on the retail market.
Pros of FDI
- Foreign goods in easy reach to the people
- Cheaper rates comparative to before, all the middle men expenses are ruled out.
- All the brands and products will be available
Cons of FDI
- All the middle men workers will face a drastic loss
- There are around 23 core of people who are currently engaged in the middle men business will be jobless
- Indians are generally dependant on this broker business, unemployed people usually opt this way out and hence most of the Indian employers will face “no jobs”
- All the transport and profiting business will decline
FACTS ON FDI
- 7th December FDI was legalized
- The guidelines are drawn and the foreign companies need to stick to these lines in order to productively carry out their company outlets in the Country.
- The MRP’s will be decided and foretold by the government
- The companies will be asked to have maximum employees
- Already 8 proposals worth Rs 1,842.55 crore are approved, which are related to FDI in pharmaceutical sector.