Advantages And Disadvantages Of Fdi In India

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disadvantage. The small retailers must be given the opportunity to provide more personalized service, so that their higher costs are taken advantage of by large supermarkets and hypermarkets. (Guruswamy, Sharma, Mohanty, Korah, 2005). India receive one tenth of FDI of that of China. The most favourable level of FDI is one which helps to contribute in the growth of productivity, which enhances learning on the job, and generates considerable transfers in the economy and this level of FDI is low in India than other developing countries like China. India must attract much larger volume of FDI that it is getting now if India ahs to attain a growth rate of excess of 10 percent per annum. India is now in a position to unbundle its FDI package effectively and also depend on other sources for the requirement of capital because India has a large pool of well trained engineers and scientists which are capable of restructuring imported know-how to suit local factor and product market. They effectively transfer know-how from foreign firms to locally owned firms. FDI are mostly needed for managerial and organizational skill. The structure and composition of India’s manufacturing, service sectors and her endowments of human capital are such that they do not require much managerial and organizational skill is the requirement of managerial and organizational skills are needed in industries which are labour intensive industries such as those in China. Developing countries like Egypt, India,
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