100 percent FDI in E commerce - what it means to retail business?
As everyone knows that now-a-days there's a lot of FDI in India from many countries but there is a country who has invested maximum which is Singapore (23,320 Crores) that has invested a lot and is on the top in investing but there are many other countries such as Mauritius (13,236 Crores), Netherlands (4,123 Crores), USA (3,959 Crores), Germany (3,497 Crores) and many other countries. However, FDI stands for Foreign Direct Investment which means that other countries like Singapore invests in our country and after 50 years or more they start earning profit whether they open a mall or a retail shop here. They have full control to their property they buy here and use it. FDI helps other foreign investors to expand their company or brand to an extended level. However, FDI in India would help India in many ways like there would be a new store for cloths, accessories etc. But it would create a negative impact too. As you all know in China, there are 40 million small businesses, but out of those only 12 million have an online presence and if we look at India here 60 million small businesses, only a million are online so in what way it would help the poor. Providing basic facilities to the poor would help them like now-a-days people are getting water in one week when the tanker comes in certain parts of India. So first you have to provide them basic needs for their living and education should be prior to everyone then 100% in FDI in E-Commerce would benefit them as it is a developing country. Just like E-Commerce sites they provide free home delivery there is no problem for people who can spend some extra fee to get their desired product without going to any shop and it is certified that they would get a brand new and guaranteed product. It would help in digitisation and would increase in online sales. Therefore, we consider investing 100% in E-Commerce in a brilliant idea but you don't know or you might be knowing that every action has a positive and negative impact it means that if we get a product from a retail shop that is at some distance from our house and we get it for Rs.50 whereas when we order it online, we spend an additional Rs.50 charge for delivery and some extra vat so we would have to pay Rs.100 for the same item just because we ordered it sitting at home. It might be good for someone who can afford to pay these amounts but for Indian Peoples that means the poor section of society which is not educated and they don't know how to use a mobile or internet and they don't even have money for buying expensive things how would be 100% investing in FDI in India be considered a brilliant idea for development. Since India is a developing country which requires education, digitisation and human resource. Many people don't get jobs and they become poor and work as labourers they get paid as one day pay not as a salary of any person working. Eventually, it will lead to more poverty for the poorer section of the society and leading to a downgrade in economy. There are people who have opened shops who are poor just for they can earn some money but how will they earn money if everyone would buy expensive things from malls and order them online and everything in the retail shops will be left unsold and this will lead to more poverty. Now-a-days in some parts of India people don't have water to drink they have to travel 2-5 km from their homes to get a bucket of water. So first educating people, digitising India and providing them basic facilities would help more rather than providing 100% FDI in E-Commerce.
- Rudresh Bodwal