economy :FDI good or bad
Answer by Glocal Makers:
Give me one reason why it aint ? and whom doesnt it help
a. From domestic enterprises
– yes initially they would have to shed off their inertia and fight with biggies like the pharma or FMCG companies did initially but then with time , they learn the tricks and start competing
– it increases the efficiency in the value chain , take the case of limited retail, e-commerce, construction sectors , the players in the value chain with time match international standards.
– the resources ( human) – get employment , with each addition of job – there are 5 new josb which get created ( thats the rule of thumb) – with resources comes the "intelluctual " resource .. notice the burst of entrprnship with sectors having larger FDIs .. Telecom for example .. Also the resources from local units of foreign companies spread the knowledge
b. From domestic consumers
– which customer would lose if firms are competing over price, quality, ..trying to win their "delight"
– look what FDI did to automobile sector for example .. I dont have to wait for 6 months and face the whims and fancies of "vespa" sales guy to get one scooter.. customer is the absolute king
India for example was on brink of collapse with less than a billion dollars in 1991 to become the second most preffered FDI destination – right after China.. GDP has grown . this has given us a platform to come out in open and compete , win in the open and fair field .
This with a dash of being "devils advocate" – reciprocate FDI to countries for example if USA is closing the doors for some sectors to India – there is no reason why India should not teach USA the same lesson once in a while .. with the vast population and rich demographics, no one would like to miss India ..the unstoppable India