Multinational Companies in India

Multinational companies offer services and manage productions in more than one country. MNC are in India because it has a huge market and it is one of the fastest growing economies in the world.

In past, Indian Foreign Direct Investment (FDI) has implemented restrictive policies in terms of foreign direct investment. As such there were very few companies that expressed interest in investing in Indian market.

In the last decade, Indian government has eliminated limitation on entry, diversification and expansion of multinational corporations and thus India has become a gateway for liberal sponsors. The benefits for MNCs and corporate are very high as extremely liberal investment environment in prevalent in India, Indian foreign direct investment has been raised up to 100 per cent equity in a business venture for a wide-range of products.

Financial liberalization is started in India in 1991 and ever since the number of multinational companies in India increased tremendously. Now, the industrial policy of India is corporate friendly and it has made India global business hub for MNCs. Many leading corporate identities and global industrial enterprises have assuredly settled their headquarters in new age India for better growth prospect.

New age India has a positive investment environment as certain exclusive prospects for investment are offered by Indian government. Indians' proficiency in the English language and lower wage costs brings many MNCs to operate from India rather than in other Asian countries like China. India has become the most favored manufacturing hub for foreign manufacturers as it has a desirable number of experts and skilled professionals and the largest English speakers’ outside the US.

The overall business infrastructures in India have been influenced by MNCs. It helps Indian companies to really comprehend where we are in the international scenario and to grow their businesses to contend with any counterparts of the world. The Indian companies now have recognized what global marketplace demands and what they have to do acquire it. So in my view the influence of MNC's had in Indian market is incredible, and is all reflected in the products we use nowadays.

In brief, impact of MNCs in India is as below:
• Rise in money flow and thus change in lifestyle of people.
• Increase in job opportunities.
• Cheaper goods.
• Recognization from the world community.
• Profits to Government.
• Increased foreign exchange.
• Increase in rate of Economic Growth.

The MNCs usually set up industries in India either through franchise or opening their local braches as the improved industrial policy of India presents competitive return to foreign shareholders.
Software industry in India has become a super power and dwell a large number of Business and R&D centers, SEZs and IT Parks to present a matchless global business ambiance to its investors in major cities such as Bangalore, Pune, Chennai, Noida, Gurgaon, Chandigarh, Mumbai, Hyderabad, and Kolkata.

Multinational companies regard India as a preferred destination for business as
• FDI relaxing polices
• Enormous market prospective of the country
• Labor competitiveness
• Macro-economic stability

Majority of MNCs present in India are basically from U.S., however we can find companies from other countries as well. The multinational companies in India represent a diversified portfolio of companies and have outsourced their works to India. Most of the MNC at present in India are from U.S., European Union like Britain, France, Netherlands, Italy, Germany, Belgium and Finland. For example, British Petroleum and Vodafone are British MNCs. Indian Automobile industry is very huge, hence many automobile giants have stepped into this country to get the market.

High-segment automobile companies like Piaggio, Fiat, and Ford Motors in India has showrooms in all major cities in India. Mid-segment automobile companies such as Hyundai Motors have also done well in car market in India. Oil companies, infrastructure builders from Middle East have entered and gain a good market share in India. Heavy engineering and Pharma companies have started operations in this country of late. Samsung and LG Electronics from South Korea and Nokia from Finland have made a significant impact on the Indian electronics market.

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