A multinational corporation (MNC) is an organization that owns or controls production of goods or services in countries outside its home country. India liberalized its economy and foreign direct investment policy in 1991, allowing up to 100% foreign equity participation in many sectors like tea, coffee, rubber, and advertising. The number of MNCs investing in India has increased substantially since the 1990s, bringing technology transfers, skills development, and increased competition but also potential issues like creation of monopolies, prioritizing profits over local needs, dumping of low quality goods, impacts on local work culture, and uneven regional development. Proper regulation is needed to balance national interests, culture, workers' rights, and encouragement of domestic industries with

2. 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.

4. MNCs IN INDIA

5. India adopted new economic policy in
July 1991 was the liberalization .

6. Earlier foreign equity participation was
restricted 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.

7. Investment
0
5000
10000
15000
20000
25000
30000
35000
No. of Company

8. • MNCs transfer the technology.
Technology Gap
• MNCs can provides necessary skills to develop
market products at international level.
Marketing Opportunities
Increase in Competition

9. • 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
0
200
400
600
800
1000
1990 1995 2000 2005 2010 2014
Total no. of R&D MNCs in
INDIA
47
151
456
790
906
16

10. • MNC’s create monopolies in the market and
eliminate local competitors.
Create Monopoly
Local Indian
companies
Foreign
MNCs
50%
90%2004
2009

11. • 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

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

13. 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.

14. 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.

17. Jaswant Singh
Deepak
Chaudhary
Mukesh Kumar