The post financial liberation era in India has experienced huge influx of 'Multinational Companies in India' and propelled India's economy to greater heights.
Although, majority of these companies are of American origin but it did not take too long for other nations to realize the huge potential that India Inc offers. 'Multinational Companies in India' represent a diversified portfolio of companies representing different nations. It is well documented that American companies accounts for around 37% of the turnover of the top 20 firms operating in India. But, the scenario for 'MNC in India' has changed a lot in recent years, since more and more firms from European Union like Britain, Italy, France, Germany, Netherlands, Finland, Belgium etc have outsourced their work to India. Finnish mobile handset manufacturing giant Nokia has the second largest base in India. British Petroleum and Vodafone (to start operation soon) represents the British. A host of automobile companies like Fiat, Ford Motors, Piaggio etc from Italy have opened shop in India with R&D wing attached. French Heavy Engineering major Alstom and Pharma major Sanofi Aventis is one of the earliest entrant in the scene and is expanding very fast. Oil companies, Infrastructure builders from Middle East are also flocking in India to catch the boom. South Korean electronics giants Samsung and LG Electronics and small and mid-segment car major Hyundai Motors are doing excellent business and using India as a hub for global delivery. Japan is also not far behind with host of electronics and automobiles shops. Companies like Singtel of Singapore and Malaysian giant Salem Group are showing huge interest for investment.
In spite of the huge growth India Inc have some bottlenecks, like -
- Irrational policies (tax structure and trade barriers).
- Low invest in infrastructure - physical and information technology.
- Slow reforms (political reforms to improve stability, privatization and deregulation, labor reforms).
Reports says, performance of 3 out of every 4 'Multinational Companies' has met or exceeded internal targets and expectations. India is perceived to be at par with China in terms of FDI attractiveness by 'Multinational Companies in India'. In view of 'Multinational Companies' community, it ranks higher than China, Malaysia, Thailand, and Philippines in terms of MNC performance. Multinational Companies Operating in India cite India's highly educated workforce, management talent, rule of law, transparency, cultural affinity, and regulatory environment as more favorable than others. Moreover, they acknowledged, India's leadership in IT, business processing, and R&D investments.
'Multinational Companies in India' are bullish on -
- India's market potential.
- Labor competitiveness.
- Macro-economic stability.
- FDI attractiveness.
