Impactof

inINDIA

A MNC is a organisation that owns or controls production of goods or services in one or more country other than their home country . It can also be referred as an international cooperation.

Examples of MNCs IBM MICROSOFT INFOSIS NESTLE COCA COLA

MNCs IN INDIA

One billion population

Labour competiveness

Economic stability

Huge market potential of the

country

Growth Of MNCsIndia adopted new economic policy in July 1991 was the liberalization .

Earlier foreign equity participation wasrestricted up to 40% , but now 100% is allow in many sector .

e.g. Tea , coffee and rubber sector , development of township and advertising sector & many more.

Growth

Positive Impact of MNCs

Investment

05000

100001500020000250003000035000

No. of Company

• MNCs transfer the technology.

Technology Gap

• MNCs can provides necessary skills to develop market products at international level.

Marketing Opportunities

Increase in Competition

• The resources and experiences of MNCs in the field of research enables the host country to establish efficient research and development system.

Research and Development

1990199520002005201020140

200400600800

1000

Total no. of R&D MNCs in INDIA

47151

456

790

906

16

Negative Impact of MNCs

• MNC’s create monopolies in the market and eliminate local competitors.

Create Monopoly

Local Indian compa-

nies

Foreign MNCs

50%

90%>> Local INDIAN companies decreased by 50% between 2004 and 2009while number of foreign MNC increased by 90%

2004

2009

• MNCs think about profit rather than host country.

Self-Interest

• e.g.- Chinese low quality products in INDIAN market.

Problem of Dumping

• MNC culture has given rise to rotational shift and work cultural round the clock.

Work Cultural Round The Clock

• MNCs set up industries in developed area and towns where infrastructual facilities are easily available and not in backward areas.

Unbalanced Regional Development

At present the world economy is an integral economy i.e. a world without borders.The role of MNCs are crucial and their existence is indispensable.

It’s functioning need proper regulation so as to insure protection of national interest , our rich culture, workers and their working time.

India has to be selective for allowing the foreign investment and at the same time it must encourage the indigenous industries.

Batch B3 MNIT JAIPUR

SUBMITTED BY

Jaswant Singh Deepak Chaudhary Mukesh Kumar