Is FDI good for India?

Points to be known :- 

• Full form of FDI is 'Foreign Direct Investment'.
• FDI can be defined as 'one company can invest on physical means such as lands, factories and mines in another company of another country to acquire lasting management interest'.
• The host company and the company, which is investing together form a 'multinational corporation' (MNC).
• Through FDI, the company, which invests will have control over the host company.

In Favor :- 

• FDI helps in the economic development of the host country (where the investment is being made).
• For origin and host countries, FDI provides access to new technologies, products, skills and organizational and management strategies.
• Employment increases in the host country.
• Origin country (the country which makes the investment) also develops economically.
• Competition increases. So that, with the competitive spirit, every company improves to its best.
• Through FDI in production companies, price reduction is possible.
• FDI is a boon for the small companies to become more actively involved in international business activities.
• Agriculture related people get good price for their goods as middle men will be eliminated.

In Against :-

• With the FDI in retail sector, small companies and merchants will suffer a lot.
• Inflation (the rise in prices over a period of time) may be increased.
• Technological dependence on foreign technology sources.

Conclusion :-

             FDI is good for any country to develop economically and also technologically.