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★Supportive host-governments- Most host- -Acceptance towards Chinese brands can

governments are very encouraging produce a direct threat on Indian
towards incoming FDI because it adds to established brands providing best
their economy. quality products with reasonable prices.

★There is a growing issue about running All in all, foreign investments can have its
own pros and cons affecting the Indian
short of key resources and inputs for the economy as well as the international market.
company’s economic augmentation. So far it seems to benefit India as it gains
the 9th spot on FDI inflows in 2016
The benefits of the FDI are- amounting roughly $44 billion same as the
previous year 2015. The graph has been
-To achieve expected growth in Indian uphill and the predictions suggest, with
several sectors significantly increasing the
Gross Domestic Product (GDP). An amount of foreign investment permitted. Of
increase in GDP requires raising the rate particular interest are the hikes that will be
of investment as well as generating seen in the insurance and railway sectors;
demand for the increased goods and the former rising from 26% to 49%, and the
services produced. later from 0% to a massive 100%.
———————————————————-
-Provide an aid to Indian agricultural Almost a comedian, Manav Chandan’s
business acumen surpasses that of most in
industry in order to become the lowest the foyer.
cost source of farm produce.

-To bring trade balance and to increase

liquidity by the means of foreign
exchange reserves.

Drawbacks of the FDI are-

-Replacement of established national brands

by the brands of the retail grains. For
example- Wal-Mart is prone to buying
the best goods at the cheapest prices to
give its customers the best value for
money.

-Low prices of Chinese products can easily

persuade Indian price conscious
mentality.