Foreign direct investment(FDI)

Apurwa.Thakur · 2013-07-14T19:04:06+00:00

As you all know govt allowed 51% investment in retail sector.many of are in favor of it and many are against . Frankly speaking i do not understand what is meaning of it. I means 51% investment signifies what? and second question Some people who are in against told that our interest rate is as high as 14 % ,how can we compete with economy whose interest rate is 4%. what percent they are talking about? If they are talking about banks interest rate then,how high and low interest rate affect FDI investment in india?

Foreign direct investment(FDI)

Apurwa.Thakur
@apurwathakur-8cwdkc

Updated: Oct 22, 2024

Views: 1.3K

As you all know govt allowed 51% investment in retail sector.many of are in favor of it and many are against .

Frankly speaking i do not understand what is meaning of it.

I means 51% investment signifies what?

and second question

Some people who are in against told that our interest rate is as high as 14 % ,how can we compete with economy whose interest rate is 4%.

what percent they are talking about?

If they are talking about banks interest rate then,how high and low interest rate affect FDI investment in india?

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Kaustubh Katdare

Administrator • Jul 14, 2013

Moved to General Talk section from Debates.

51% investment, in simple terms means that in a joint venture; the investor owns 51% of the company. Which, under normal circumstances would mean that they're the 'bosses' who will control the company and have a final say. I repeat - that's what it means under 'normal circumstances'.

51% investment in Retail Sector means that foreign retail giants like Walmart will be able to take up to 51% control in the joint ventures they'll have with their Indian partners. For example, if Walmart (US) and Reliance (India) decide to venture into Indian retail sector; Walmart will be allowed to own up to 51% of the venture. Meaning, they'll have the final say on the direction of the company and decisions.

Why are people against it?

It basically means that the foreigners will control things in the retail sector. They'll take away profits while using the resources available in India; and foreigners controlling business in India is undesirable; because you won't have the decision making power.

Your second question calls for a different discussion.

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Apurwa.Thakur

Member • Jul 14, 2013

Kaustubh Katdare
Moved to General Talk section from Debates.

51% investment, in simple terms means that in a joint venture; the investor owns 51% of the company. Which, under normal circumstances would mean that they're the 'bosses' who will control the company and have a final say. I repeat - that's what it means under 'normal circumstances'.

51% investment in Retail Sector means that foreign retail giants like Walmart will be able to take up to 51% control in the joint ventures they'll have with their Indian partners. For example, if Walmart (US) and Reliance (India) decide to venture into Indian retail sector; Walmart will be allowed to own up to 51% of the venture. Meaning, they'll have the final say on the direction of the company and decisions.

Why are people against it?

It basically means that the foreigners will control things in the retail sector. They'll take away profits while using the resources available in India; and foreigners controlling business in India is undesirable; because you won't have the decision making power.

Your second question calls for a different discussion.

Suppose i have my private company,then only i will decide what percent foreign company invest.
I means why 51%,why not want of companies(how much one company can invest on other and how much other company prefer )
Very confusing..

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