What is the role of MNC in India?

Answer 1

There is no distinction between an MNCs & a domestic company in India policy regarding MNCs is the same as for Foreign Private Capital in indie. Large & dominant MNCs along with Indian Companies are covered under MRTP Act. MNCs are specifically covered under Foreign Exchange Management Act (FEMA).

Now, we study the operation of MNCs in India:

1.) Profit Maximisation.

2.) International Network of marketing.

3.) Diversification Policy.

4.) Concentration in Consumer goods.

5.) Location of central control offices.

6.) Techniques to achieve Public Acceptability.

7.) Existence of Modern & Sophisticated Technology.

8.) Business but not social Justice.

9.) MNCs & Process of planned Economic Development in India.

10.) Cultural Explosion.

Read more: What_is_the_role_of_Multinational_companies_in_India

Answer 2

Multinational companies are the organizations or enterprises that manage production or offer services in more than one country. And India has been the home to a number of multinational companies. In fact, since the financial liberalization in the country in 1991, the number of multinational companies in India has increased noticeably. Though majority of the multinational companies in India are from the U.S., however one can also find companies from other countries as well.

Destination India

The multinational companies in India represent a diversified portfolio of companies from different countries. Though the American companies - the majority of the MNC in India, account for about 37% of the turnover of the top 20 firms operating in India, but the scenario has changed a lot off late. More enterprises from European Union like Britain, France, Netherlands, Italy, Germany, Belgium and Finland have come to India or have outsourced their works to this country. Finnish mobile giant Nokia has their second largest base in this country. There are also MNCs like British Petroleum and Vodafone that represent Britain. India has a huge market for automobiles and hence a number of automobile giants have stepped in to this country to reap the market. One can easily find the showrooms of the multinational automobile companies like Fiat, Piaggio, and Ford Motors in India. French Heavy Engineering major Alstom and Pharma major Sanofi Aventis have also started their operations in this country. The later one is in fact one of the earliest entrants in the list of multinational companies in India, which is currently growing at a very enviable rate. There are also a number of oil companies and infrastructure builders from Middle East. Electronics giants like Samsung and LG Electronics from South Korea have already made a substantial impact on the Indian electronics market. Hyundai Motors has also done well in mid-segment car market in India.

Why are Multinational Companies in India?

There are a number of reasons why the multinational companies are coming down to India. India has got a huge market. It has also got one of the fastest growing economies in the world. Besides, the policy of the government towards FDI has also played a major role in attracting the multinational companies in India.

For quite a long time, India had a restrictive policy in terms of foreign direct investment. As a result, there was lesser number of companies that showed interest in investing in Indian market. However, the scenario changed during the financial liberalization of the country, especially after 1991. Government, nowadays, makes continuous efforts to attract foreign investments by relaxing many of its policies. As a result, a number of multinational companies have shown interest in Indian market.

Following are the reasons why multinational companies consider India as a preferred destination for business:

• Huge market potential of the country
• FDI attractiveness
• Labor competitiveness
• Macro-economic stability

Answer 3

Multinational companies have had a positive impact on India's economy by providing employment, increasing tax revenue, and increasing economic health. India's foreign relations have improved as a result of the multinational companies.

Answer 4

Check this page out, in the Related Link below, it has plenty on the subject:

Answer 5

for this see wikipedia article on"indian economy" and you can also take help of "economist"magazine and other such publications

Answer 6

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