Foreign Direct Investment Disadvantages Essay

There is a lot to be tell for spacious retail to come to India, but we cannot simply be resignn in and mimic something which is being pushed down our throats because those who make the polity out to not have the faintest clue on how retail really plant in India If thither were clear answers in black and white to the question, there would really be no pauperization for any debate on the issue, but the truth is that it is simply not that round-eyed.On a philosophic and emotional level, the answer could be that any form of unknown affaire in a domestic market is rife with dangers of the colonialism sort, but in this day and age, while the core concept of being wary of remote dominance may still be true, the fact remains that there atomic number 18 plenty of ways to ensure that it works on a win-win basis for all concerned. The main problem with the current status of foreign direct investment (FDI) in retail in India is that it does not tender a level playing field to oth er players of the domestic and footling sort.In addition, it appears to take a rather naive and simplistic shot on certain aspects, which like myths being repeated, tend to plough urban legends. On the other hand, no country can afford to take on an isolationist approach. To start with, it may help to go by the background and policy note on the Cabinet decision on FDI in retail, as put up on various places on the internet. Facebook, PIB) As this writer sees it, with a holistic view of the subject and not just based on jingoism of the burn down the malls (right view) and painful for farmers (left view) sort, but on rational evaluation of larger issues, there be some points which need to be straightened out. Large retail is inevitable, and that is a simple truth, but there has to be larger perspective for public faithful which seems to be missing from this policy. The people of India come first, including those who want a rectify merchandise or service buying or selling exper ience, and at the end of the day it is their wallets which will decide where they go.But at the same time, the government, with the policy as outlined above, cannot sell the baby with the bath-water, and make things worse. any(prenominal) suggestions 1) The present Agriculture Produce Market Committee (APMC) Act requires pressing revamp if we really want to help the rural and agricultural sectors with a better go to market scenario. This, along with rapid introduction of the goods and operate tax (GST) as well as ease of inter- and intra-state movement of foodgrain, agri products and newly produce, would do more to improve matters, as well as do wonders for our conomy in a variety of waysmost of all in terms of controlling harms as well as reducing depot and transit losses. 2) The policy shown above makes a case that brands by big FDI retailers need to be carried across borders without in any way making it clear that the quality of those brands needs to be same across borders, too. As of now we see that with these manufacturers and retailers there is one lower quality for barter in India and there is a better quality for sale in developed countriescase in point being soft drinks, refined foods, confectionery, electronics, motor vehicles and others.If anything is by way of a different quality for India for price or other reasons, then let it be clearly label as such. 3) Specifically in the case of packaged and processed foods, the policy does not say anything about shackle to best case scenarios in terms of labelling of ingredients and avoiding misleading marketing ploys, thereby leading to a military post where outright dangerous products are foisted on Indian consumers. The amount of product detail available for consumers in developed countries must be matched for India, too.India cannot become a vast chemistry lab for processed foods or anything else. 4) to a greater extent empirical data needs to be provided on subjects like advancement in supply chain. India is the country where the passenger rail tatter deliveries, fresh hot cooked food by dabbawallas and diamonds as well as other precious stones by angadias have set better than spherical standards in supply chains, so the same standards need to be quantified and apply to those seeking 100% FDI in retail. It is not too much to pray for them to match the Indian standardsunless those who made the policy are ashamed of our prowess. ) The investments in retail by the FDI route, when they come, should come only through a short-list of prize tax adherence countries. The misused option of FDI coming in through known or suspect tax havens needs to be obturatefirmly. Likewise, full disclosures of the strictest sort need to be made on who the investors areagain, these cannot be suitcase corporate identities hiding behind consultants and banks in wraithlike tax havens or other countries. Unlike what happened in, for example, airlines, Indians need to know who is put and fro m where.And in case there are court-ordered issues, then we need to know who the faces are who will go through the Indian legal system, unless those who made the policy are ashamed of our legal system. 6) The payment affect and cash management as well as tax adherence part of this industry, both in terms of procurement and sale, need to be through the Indian banking system. And by fully transparent methods, so that float as well as control remains in India at all times, as is the case in developed countries.