Flipkart aur Amazon ne Dukandar k Pet Pe Maari Laat FDI in Retail
Flipkart aur Amazon ne Dukandar k Pet Pe Maari Laat FDI in Retail
What is FDI?
FDI full form is Foreign Direct Investment. So if foreign direct investment comes under retail sector then what will happen. Let's understand FDI properly if I want to do a business and it requires capital,So from where I would get I can ask my friend,banks or may be I could make my business public sector and ask the public for the capital or may be in different way. I can ask for money If I receive capital from outside of the country. So that is FDI that means we invested money directly from foreign. This is Foreign Direct Investment so in retail sector if we get FDI then what will happen all the road side shops.  Suppose they are doing normal business for their need.  If a big company enters in market like walmart with 100% FDI. Means whatever money do they have will be they going to invest in India to gain a market share. So they will open there store everywhere and will tend to increase there popularity everywhere due to this all people will buy from there. And the rest all the small stores will die due to no customer arrival. Because Walmart will be selling with a better price margin. Margin means if you are buying a toys for example and the small store are selling at Rs 60.  In walmart you will be getting at Rs 50. Then why you will not go there due to this all the small shopes story will eventually end and in our country. There is a lot of small shopes are availabe there eventully lose. There jobs due to this there is a hole lot of problems are going on FDI.
What people are saying that if FDI will come in India ?
It will invent British Raj all the foreign will invent in India. And we will be just playing like a puppet before them so logically the one whose business modal is good will tend to run better. This is wrong thinking about this. In our country Big Bazaar is also there Big Bazaar too is doing the same thing. Big Bazaar is from our country,But no one questions them now we take a FDI logic. I want to buy a mobile phone. But in our country that level and of that price that phone isn't available. For example so what we do is we open a company in our country. So now from where we going to receive money and government too is not providing to us. So here suppose a company enters MI and build a company with 100% FDI. Means invest as much you can no problem. So they will employ people of our country as outsiders will require more amandities to live. This will tend to rise in there expances so what will you do,You employ people near to you,that will decrease their expenses and ultimately your employment will increase. The small stores whose jobs are declining here. They are getting okay let's talk another tropic. Let's assume in our country there is no money,you know our country is deficit economy deficit economy. Means we have a more expenses and less is the income this is deficit economy,so if we have a deficit economy so every year we are going under a loss and if we invest in there then ultimately we will be in the loss if a company is surplus,a country where there is a lot of money is there. And if they comes in our country then and installs a factory,then what will happen,the demand will tend to rise and the MI phones will too be sold out of the country. It's not like it will be sold only on india and do this it may become a hub for the production all the big companies. May started to come in india and start to produce here with the production indirectly people like us will get the jobs here demand will tend to rise after we will be a market leader. We say that china is the king china is the king of production. Because china is the production hub government invested there. But our government does not have that much to invest in production. So what government is think we receive money via FDI. So they will invest in india. And we will utilize it to do anything now to will be knowing do FDI retail is good for us not.  So what government did is they said to investor to come with 100% FDI in india with a single product line. Means a company which is selling only one product. So you can come here and invest using 100% FDI. You won't be selling different brands in retail FDI is 51% only. And if you want more than that then you need to follow some legal process which is right now leave it. But 100% if you want then you need to focus on single brand and that brand must be same throw out the world like in our country why they did this take. For examples suppose any Z brand. This Z brand is very successful in US. And now it comes in India with 100% FDI. So it will destroy our market take ideally,whatever may be the company which is working on a single brand or single retail channel that will differentiate or thay do cost leadership. Let me understand if you don't remember differentiate or cost leadership. Then differentiate means we provide a thing which is completely different in the market and for that we will charge money accordingly. for example iphone after differentiate there is cost leadership cost leadership. Means I will provide a service which is given by all service provider. But I will be providing on less price like MI is doing. Like Real me one is doing. So you tell me if a company is coming to India with single FDI,single brand so will they do differentiation or cost leadership. If they will do cost leadership then it will fail you have to open a big store and many more and will be selling one type of brand which may be not profitable,so ideally things that are going you took differentiation company with this. There would be a good business environment for us all will think that this country is nice,here we can invest FDI so for outside. We will be receiving more investment that same thing was going on when Modi ji became prime minister. That I will bring FDI in this and that till now we are hearing it and no action,if it comes then there will be a huge transformation in our country and its logicall,we won't get money hand on hand,it takes time.That's way they are saying we will implement next year next year..till next year. we has a hope. Let's assume I am a company, and I have a lot of money and I invested in India,so next year if other government comes in then my all investment may get destroy. The new government would say we didn't mentioned 100% FDI scheme. So go from here so what do they do is they implement the current rules and the next time your government comes in. We will give the money to the government. So that we too could earn some profit. So this is the logic so you tell me is FDI is good,bad or it would bring British Raj will we become poor or will. Our country will become rich or will the small store will end up or will increase in their profit or maybe walmart will employ the small store guys for the same salary. Because they have a experience they do know about market, no one knows it's for example that it may happen. We don't know what walmart will do if we take under 100% FDI.