There are many demerits of FDI. The main demerit is that it increases the foreign interference in the country. Secondly, it poses the major threat to the local industries in the economy. It makes the economy to move towards privatization which in the long run may decrease the control of the government. Sometimes, it can create issues about the cultural aspects in the country. The expectations of the people regarding their salaries increases which lowers the skilled people strength in local companies. Government has to face a lot of international pressure after permitting free FDI in the state. FDI is very important for the developing countries but it's demerits are also not ignorable.
