Costs of FDI

Transfer of technology and skills is generally considered a benefit of FDI, as it can help to improve the productivity and competitiveness of domestic industries.

Job displacement is the term used to describe the situation where FDI leads to the displacement of domestic workers, either through the closure of domestic firms or through the relocation of production to other countries.

The manufacturing sector in India is most vulnerable to job losses due to FDI, as it is the sector that is most exposed to competition from foreign firms.

All of the above factors can contribute to increased competition for domestic firms when FDI takes place.

Increased energy consumption is not typically considered an environmental cost of FDI, as it is a general consequence of economic growth.

Resource nationalism is the term used to describe the situation where FDI leads to the exploitation of natural resources in India, often to the detriment of the local population and environment.

Improved living standards is generally considered a benefit of FDI, as it can lead to increased employment, higher wages, and improved access to goods and services.

Enclave economy is the term used to describe the situation where FDI leads to the creation of an enclave economy in India, where foreign firms operate in a separate and distinct economic zone from the rest of the economy.

Increased economic growth is generally considered a benefit of FDI, as it can lead to increased employment, higher wages, and improved access to goods and services.

Immiserizing growth is the term used to describe the situation where FDI leads to immiserizing growth in India, where the overall economic welfare of the country actually declines as a result of FDI.

Improved governance is generally considered a benefit of FDI, as it can lead to increased transparency, accountability, and efficiency in government.

Loss of economic sovereignty is the term used to describe the situation where FDI leads to the loss of economic sovereignty in India, where the government's ability to make independent economic decisions is compromised.

Improved legal framework is generally considered a benefit of FDI, as it can lead to increased transparency, accountability, and efficiency in the legal system.

Increased regulatory burden is the term used to describe the situation where FDI leads to increased regulatory burden in India, where the government imposes additional regulations on foreign firms.

Improved institutional framework is generally considered a benefit of FDI, as it can lead to increased transparency, accountability, and efficiency in government institutions.