Multinational Corporation in India
Indian economy is growing over the lengths and breaths and establishes businesses earning huge profit. Companies have grown in their size (capital and number of employees) competing with different countries companies. The concept of Multinational Corporation has gained significance over a period of time as it has its business globally in different countries.
MNC is defined to be anenterprise
operating in several countries but managed from one country.
AMultinational corporation is
anorganization doing business in more than one country. It engages in various
activities like exporting, manufacturing in different countries.
MNC is company which functions with a
head quarters based in one country, while other facilities are based in other
Any company is referred to as a
Multinational company or corporation (MNC) when that company manages its
operation or production or service delivery from more than a single country. It
has its headquarter based in one country with several other operating branches
in different other countries. The country where the head quarter is located is
called the home country whereas; the other countries with operational branches
are called the host countries. Apart from playing an important role in
globalization and international relations, these multinational companies even
have notable influence in a country’s economy as well as the world economy. The
budget of some of the MNCs are so high that at times they even exceed the GDP (Gross
Domestic Product) of a nation.
The main features or elements of MNCs
are as follows
Considers opportunities throughout the
globe though they do the business in a few countries.
To invest considerable portion of their
They are huge industrial/business
It engages in international production
and operates plants in a number of countries.
They take managerial decisions on a
They produce in one or a few countries
and sell them in most of the countries.
Their international operations are
integrated into the corporations overall business.
The reasons for so many MNC’s in Indian
are as follows
India has a huge market
It is one of the fastest growing
economies in the world.
Favorable policies of the government
Financial liberalization of the country
Government encourages and makes
continuous efforts to attract foreign investment by relaxing policies.
India ranks 10th in the world in factory
The manufacturing sector accounts for
Privatisation of certain public sector
Liberlisation also attracted MNC’s and
encouraged local entrepreneurs
Indian stands 15th in services output
Increased demand from foreign consumers
for Indian products and services
India has an extensive network of
undersea fibre-optic cables leading to India becoming the centre for
outsourcing of business process
India has become big employment
generator especially amongst young graduates.
India has witnessed sustained economic
development as envisioned byour forefathers
Top MNC’s in India
Following are the names of some of the
most famous multinational companies
The entry of MNC’s into India have proved quite beneficial for the growth
and development of Indian economy providing employment opportunities for the